Drawing correct resistance and support-lines

Quoting dagoods

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love your thread friend.... learning from u! thanks!

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Quoting aediaz1

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People have different drawing-ways, for me, I like to include shadows too, mostly because it includes more of the swings in the market. If you are unsure, try and see if lines drawn from shadows/no shadow can fit with round numbers too. Practice pays off

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Quoting aiyahmarklah

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Thanks I totally agree with you practice is crucial, in my case both works for me, usually i follow one general guideline that is it has to be obvious and logical, if I find myself trying to ''justify'' those lines drawn then I will not take it.

Cheers

mARK

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Quoting aediaz1

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Well said. It's really that easy. For me, I try apply those "rules" as stated in the beginning of this thread, but I don't hesitate drawing lines if they seems quite obvious. When you have those lines, you will/have been amazed how accurate they can be.

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Quoting karimr

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Hi aediaz,
Can you help me on the right time of entering a trade.It always go the other way when i enter a trade.I was told that once the candle breakout from the treandline wait for the candle to close.It has to be outside of the line and you will only enter trade on next candle 5 pips away from previous close candle.is this true or is there a better way to enter? And which is the best TF to apply for the treandline method.Thanks bro.

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Quoting aiyahmarklah

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Hi,

I am not sure if this is relevant, however I place a lot of emphasis on average trading ranges, daily or weekly. Breakouts of patterns like trendlines, wedges or triangles are more meaningful at certain levels.

eg, on an intraday timeframe and assuming you start at NY session

We have to see what range the particular pair had achieved during the tokyo session as well as the london session. Assuming pair X averages 100 pips a day and it has already met this range during the first half of the london session, then a breakout of a channel on the upside for example would not yield very good odds if this breakout occurs at the upper extreme of the previously establish range. If the scenario is such that pair X only managed 50 pips prior to NY start, then the same breakout would be meaningful.

Listing all possible scenarios would be too long to type, hope you get the idea. Of course always trade in the direction of the intermediate or main trend.

mARK

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Quoting sDRs

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Hey,

really simple and interesting thread. I will try to participate here as well.

Maybe someone would like to share Cable and EU chart?

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Quoting aiyahmarklah

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Hi aediaz1,

How do i attach a chart ?

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Quoting aiyahmarklah

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Attachment



Thx aediaz1,

So you can see on EUR/JPY hourly chart, it only managed about 90 pips during the asia session, so when it broke out of the triangle on the downside, we can easily conclude that this break is favorable as it may seek to establish its average trading range of about 150 pips. During the london session the price went on down to around 159.80. So from asia high to london low is about 160 pips, chances of it going lower is slim.

Thus on the second triangle breakout, its on the upside on the lower extreme of the day's range, so its a good trade.
And throughout the NY session its traded within the range.

Every pair is capable to moving a certain range per day, of course there are exceptions but its not as frequent as its average daily.

mARK

hope this works out as I not too sure about the image attahment clarity.

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