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The best support and resistance levels

  • #1
  • First Post: Feb 2, 2009 10:25am Feb 2, 2009 10:25am
Hi,

i was wondering what you guys think are the best support and resistance levels that worked for you pretty well?
  • #2
  • Feb 2, 2009 10:30am Feb 2, 2009 10:30am
this may not be what ur after, but where ever price makes a significant bounce from. Doesnt matter how many times it visits, well actually it does. What i mean is a resistance/support area can be defined with just a single bounce.
Some ppl might disagree but when price revisits an area a few times its significance weakens. Reason being is because either supply or demand is being removed everytime it visits this area.
Hope it helps somewhat.
  • #3
  • Feb 2, 2009 10:39am Feb 2, 2009 10:39am
hi fry,

i have some knowledge about resistance and support.

the question i ask myself is, how far to i have go back in time to find strong resistance/support areas.

is it better to take s/r from the last two days, or last week or last month?

i know that actually every bounce makes a s/r area.

i think that time could make a difference for s/r levels, dont you think?
  • #4
  • Feb 2, 2009 10:46am Feb 2, 2009 10:46am
what would you do?
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  • #5
  • Feb 2, 2009 10:47am Feb 2, 2009 10:47am
I also want to know that, and that i will not open a new thread I want to ask on which timeframe you put a fibonacci retracement, on 1H chart or on Daily chart?

Thank you for answering,

Regards,
scoprpionFX
  • #6
  • Feb 2, 2009 10:51am Feb 2, 2009 10:51am
Quoting scorpionFX
I also want to know that, and that i will not open a new thread I want to ask on which timeframe you put a fibonacci retracement, on 1H chart or on Daily chart?

Thank you for answering,

Regards,
scoprpionFX
this thread is about support and resistance. please dont trash it with fibo staff. just use the forum search. youŽll find enough about fibos there.
  • #7
  • Feb 2, 2009 10:52am Feb 2, 2009 10:52am
Quoting Wallboroff
what would you do?
I am not yet a good trader but I think it will go up becouse if you look at higher timeframe the trend is up and also you cannot put a support and resistance level just becouse it has bounced one time. You should search for the places where price have bounced more times.

But wait for somebody more experienced toa answer your question.

Regards,
scorpionFX
  • #8
  • Feb 2, 2009 10:56am Feb 2, 2009 10:56am
Quoting Wallboroff
this thread is about support and resistance. please dont trash it with fibo staff. just use the forum search. youŽll find enough about fibos there.
Fibo retracement is also about the resistance and support levels.
Also you could search the forum becouse there is a lot thinks about resistance and support level. Dont be agressive if you dont have to be, we are here to help each other not for argue.

Regards,
scorpionFX
  • #9
  • Feb 2, 2009 10:58am Feb 2, 2009 10:58am
Sure I figured you knew bout s/r i was just offering what iv picked up.
Um on your particular chart I wud say wait for break of the bottom support area. But I wud much prefere to use a higher time frame to identify more significant s/r areas.
I wud wait for the break of that and trade down because it is with the trend, if it reversed I wud wait till it broke the top resistance area and trade that way.
If there is an area where price moves a good distance from and it is not an area of previous s/r, therefore a new defined area of s/r then I wud enter when price reaches this area in the opposite direction. So for example if price is retracing upwards into a fresh resistance area and the trend is down, I wud enter when price reaches this but downward with the trend.
If price has already reacted to an area of s/r then it weakens its significance and is more likly to break unless the last time it came from there it went a real good distance, meaning there stil plenty of supply/demand there.

Also scorpionFX , was your question directed towards me? if so you can pm me if u wish.
  • #10
  • Edited 11:02am Feb 2, 2009 11:01am | Edited 11:02am
Quoting Wallboroff
hi fry,

i have some knowledge about resistance and support.

the question i ask myself is, how far to i have go back in time to find strong resistance/support areas.

is it better to take s/r from the last two days, or last week or last month?

i know that actually every bounce makes a s/r area.

i think that time could make a difference for s/r levels, dont you think?


S/R levels rely on Time Frame.... the last 1H bar's low is some kind of support? Or the last Week's candle? Yes and no.... What I've seen is price respecting S/R many times.... and price ignoring S/R levels many times.... When it will cross or respect it is one of the many million dollars Fx questions...

Personally, I use S/R levels on the TF I'm trading.... If I'm scalping the 5m I see no point in the monthly S/R levels.... and vice-versa

Cheers

HT
Many share my views with me. But I don't share them with them...
  • #11
  • Feb 2, 2009 11:03am Feb 2, 2009 11:03am
Quoting scorpionFX
Fibo retracement is also about the resistance and support levels.
Also you could search the forum becouse there is a lot thinks about resistance and support level. Dont be agressive if you dont have to be, we are here to help each other not for argue.

Regards,
scorpionFX
ok, forget it, i dont want this thread to be trashed so soon. Ofcourse, i could search in the forum for support/resistance.

i already said that i have a decent knowledge of support and resistance. i just want to see how different people would trade these kind of situations (ref. to the pic i posted) just using support and resistance.

fibs are usefull but i dont want them in here please.
  • #12
  • Feb 2, 2009 11:04am Feb 2, 2009 11:04am
I agree maybe the monthly tf for 5m is a bit extreme, but u shud not ignore higher tf s/r areas because u will get caught out if u trade solely from s/r. Even for a scalper u shud consider multi tf.
I like to think of s/r areas as not a line, but a collection of the range of bars that make up this 'line', didi price fly away from it? or did it gradualy move away? U can be sure if it graduly moved away its not very strong level.
  • #13
  • Feb 2, 2009 11:07am Feb 2, 2009 11:07am
Quoting fry2010
I agree maybe the monthly tf for 5m is a bit extreme, but u shud not ignore higher tf s/r areas because u will get caught out if u trade solely from s/r.

well, you dont really need higher timeframes in my opinion. you can zoom out on a 5 minute chart to see the whole picture.
  • #14
  • Feb 2, 2009 11:08am Feb 2, 2009 11:08am
touche. or however its spelt. But ur chart doesnt contain enough info for me. I realise tho it was just for example purposes. Hey theres plenty of ways to skin a cat.
  • #15
  • Feb 2, 2009 11:13am Feb 2, 2009 11:13am
this is a 5 minute chart!!!

you see enough s/r levels to trade here.

the price went down but why?
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  • #16
  • Feb 2, 2009 11:20am Feb 2, 2009 11:20am
The area you show is a wedge. Price is stuck in a range, orders are being placed and activated, when one runs out price can only move in one direction.
The major trend is down, price flew away from this area once all demand had been fed by supply, ultimatly there was greater supply than demand here. This how I see it.
Also you may notice when price finally made its way back up to this level again, it dropped because there was still supply there. It wud take more demand now to break this or untill supply runs out here.
  • #17
  • Feb 2, 2009 11:25am Feb 2, 2009 11:25am
Quoting fry2010
I agree maybe the monthly tf for 5m is a bit extreme, but u shud not ignore higher tf s/r areas because u will get caught out if u trade solely from s/r. Even for a scalper u shud consider multi tf.
I like to think of s/r areas as not a line, but a collection of the range of bars that make up this 'line', didi price fly away from it? or did it gradualy move away? U can be sure if it graduly moved away its not very strong level.
Indeed!

I prefer use S/R "zones" instead of lines/levels..... I (personally, no offense to its fans) just hate Fibs (just can't figure them.... my thick doctor mind just can't reach it....). So I visually identify the "hesitation" zones and set them as my S/R.... of course I do it also on higher TF's, but I pay close attention to the one I'm trading...

Cheers

HT
Many share my views with me. But I don't share them with them...
  • #18
  • Feb 2, 2009 11:34am Feb 2, 2009 11:34am
As I say earlier everyone has their own method that works for them, ( or in some cases doesnt work). I dont think there is a right or a wrong way as long as what you do works for you. I dont like it when I see people sayin 'this is how you shud trade' or 'you dont use this like that' or 'this doesnt work' etc...
I cant really figure out how to use oscillators, or at least im crap at using them to trade effectivly it doesnt mean they dont work.
This is just a general comment btw, I dont see any of this going on here.
  • #19
  • Feb 2, 2009 11:41am Feb 2, 2009 11:41am
Quoting fry2010
As I say earlier everyone has their own method that works for them, ( or in some cases doesnt work). I dont think there is a right or a wrong way as long as what you do works for you. I dont like it when I see people sayin 'this is how you shud trade' or 'you dont use this like that' or 'this doesnt work' etc...
I cant really figure out how to use oscillators, or at least im crap at using them to trade effectivly it doesnt mean they dont work.
This is just a general comment btw, I dont see any of this...


Cheers!
Many share my views with me. But I don't share them with them...
  • #20
  • Feb 2, 2009 2:25pm Feb 2, 2009 2:25pm
Quoting Wallboroff
Hi,

i was wondering what you guys think are the best support and resistance levels that worked for you pretty well?
I used weeky high and low or monthly will work aslo I martingale at these levels buy the low (support ) and sell the high(resistance) now u can have a nice double support and resistacne on the weekly and monthly
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