The right Trendline and S/R line

Getting to the present time (this is on 4hr)

Price rose to (x) then dropped to (a) and I drew in S/R line 1

Price then rose to (b) and stopped as there was previous resistance there and then dropped towards (c) and I drew R line 2

When price got to (c) it provided potential for a long trade though you would have to go to a lower time frame to get the entry and place a stop just under line 1.Aiming to take profit/move up stop when price approaches line 2.

Price broke line 2 and stopped at resistance level as (x)at (d). If still in the trade you could possibly move up stop to around (b) level.{Hindsight trading is so easy}

Anyway price dropped toward line 1 and I re-drew line 2 as line 3 {parallel to 1}.I drew in line 4 at this time as it was around the middle of the channel/bull flag.

Price bounced off line 1 found resistance at line 3 then found support on line 4 at (e).This making me look for a long when price broke line 3

Hey Steve

Im wondering why you dont draw trendline like in this picture....let me understand why you choice like on your original picture?

Regards

Catalin

Yes you are right.Sorry for any confusion.

I only put those few lines on as examples of what I look for.

Line 1 provided resistance at the start of the down move then was no good for a year but came in as support again at the bottom of the present up move.
The price dropped away from line 1 and a new line could be drawn from the last touch of line 1 to a suitable point.After 2 or 3 re-plotting you get your line 1
When there is an attempted break of your line 1 my line 2 can also be drawn.Combined with my 3 on the rising lows gives a good potential break

Yes I would draw your 2 and 3 lines firstly as the up trend started then put in my line 4 as the trend became more clear

I only put a few lines on because if I had put on all the potential lines it would have looked like a spiders web

Great charts and even better explanations. Been using some trendlines but trying to increase my skill level with them. Thanks again.

Thanks Nelson..glad you liked them

If you go into the news section and watch the PFXGlobal videos they tend to have trend lines in and if you watch todays called New Resistance Levels there is quite a lot of trend line analisis....sorry I dont know how to provide a link you will have to dig it out yourself

steve

Hi again

Sorry for long delay but i dont have lot of time.

Here is my eur/usd 4h chart where will go...UP or DOWN?

ok let see in witch direction will go.

Pound is at an interesting area

It is in a good channel between (a) & (b) with centre line (c)

Price is finding resistance at line(d).

Will it carry on up to resistance line (b) or drop to line (c) and support at (e)?

Price has now broken (d)

Will it now hit (b)?

Price is in a rising channel (f,g) and is at a long term resistance at (b)

This coincides with the interest statement

One of them will have to break shortly

I see £/$ is still in its long term channel touching the outer support line
Will this hold when the interest statement comes out?

Dropping down a timeframe and we are still finding support

http://C:\Users\stephen\Pictures\£.gif
The long term trend seems to have stayed intact

http://C:\Users\stephen\Pictures\£2.gif
Down to 1hr and possible support/resistance areas