The best support and resistance levels | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Need Best Support and Resistance Indicator 472 replies

Best Reliable Sources for Daily Support and Resistance points. 2 replies

What are the Best Support and Resistance Systems? 1 reply

How can I find These Values inorder to find resistance and support levels 2 replies

Possible Support and Resistance Levels 1 reply

Attachments: The best support and resistance levels
Exit Attachments

The best support and resistance levels

  • #21
  • Feb 2, 2009 2:44pm Feb 2, 2009 2:44pm
Quoting Wallboroff
Hi,

i was wondering what you guys think are the best support and resistance levels that worked for you pretty well?
The levels that are actually generating buying and selling interest are best.
Not from a calculation like "this minus that divided by two" or by a fib etc.
  • #22
  • Feb 2, 2009 3:02pm Feb 2, 2009 3:02pm
Last week's high and low. Yesterday's high and low. Take a look at them. Price doesn't always stop there, but you usually get a reaction on them.
  • #23
  • Feb 2, 2009 4:37pm Feb 2, 2009 4:37pm
Nod. High/low is good, but not technically S&R.

S&R is a place where price has reacted twice. Use the daily if you trade intra-day, use the weekly and monthly if you trade on the daily, if you scalp on the m1 or m5 then use the m5, m15 and h1.
  • #24
  • Feb 2, 2009 11:54pm Feb 2, 2009 11:54pm
Quoting Dopey
Last week's high and low. Yesterday's high and low. Take a look at them. Price doesn't always stop there, but you usually get a reaction on them.
he is correct
Attached Image(s) (click to enlarge)
Click to Enlarge Name: cris2.gif Size: 19 KB
Click to Enlarge Name: cris3.gif Size: 21 KB
Click to Enlarge Name: cris4.gif Size: 19 KB
Click to Enlarge Name: cris5.gif Size: 20 KB
PROFITABLE TRADERS ARE NOT LUCKY BUT ARE WELL PREPARED
  • #25
  • Feb 3, 2009 2:12am Feb 3, 2009 2:12am
Woh, great posts here. Thanks guys this is really good.

Maybe we can gather some more informations on typical situations and how you guys would act.

Down below is my way to draw s/r levels for the 4 hour chart.

Trading is done on the 5m chart.
Attached Image (click to enlarge)
Click to Enlarge Name: gu6.gif Size: 12 KB
  • #26
  • Feb 3, 2009 2:15am Feb 3, 2009 2:15am
Quoting zamanib
he is correct
hi zam,

can you explain some more about your s/r levels and why you would trade at those positions you´ve shown us and why?
  • #27
  • Feb 3, 2009 2:27am Feb 3, 2009 2:27am
what would you do?

i know, a lot of you dont trade on a 5m chart. that doesnt matter. i´m just curious how you would react when you see something like this.
Attached Image (click to enlarge)
Click to Enlarge Name: gu7.gif Size: 12 KB
  • #28
  • Feb 3, 2009 3:02am Feb 3, 2009 3:02am
There are three areas I'd be looking at price action. First thing to notice is that price is in a range and I'd be favouring a breakout. I'd expect a break above the double top to be vigorous enough and may set the tone for the rest of the London session. There are a couple of support levels below, the inside bucket support where price most recently found buyers outstripping sellers, and below that the low made before the London session open. A break below this would also signify that sellers are in control and I'd be looking to get short below this if the price action appealed to me. In particular the price action I'd be looking for are progressively lower highs and lows and also some indication that price did respect the potential support offered by the low. If price hooked back up slightly from the potential support and then collapsed that would indicate to me that there are very few buyers left at this price and price would likely break hard and fast. If price did not appear to react to the support area then I'd look to see how far price had traveled to the support level and if it had come a long way then I'd wait for price to retrace and then sell on the first sign of the down trend continuing as long as it did not retrace beyond the last high (which would be the technical end of the downtrend).
Attached Image (click to enlarge)
Click to Enlarge Name: gu7.gif Size: 15 KB
  • #29
  • Edited 3:38am Feb 3, 2009 3:26am | Edited 3:38am
EDIT:
uppsssss........
forexflash
  • #30
  • Feb 3, 2009 3:31am Feb 3, 2009 3:31am
Quoting birdt
There are three areas I'd be looking at price action....
great post. thanks birdt.
  • #31
  • Feb 3, 2009 3:35am Feb 3, 2009 3:35am
here is what i did.

i sold @ 1.4236 but went out to early but profit.

this is still my biggest problem knowing when to exit.
Attached Image (click to enlarge)
Click to Enlarge Name: gu8.gif Size: 12 KB
  • #32
  • Feb 3, 2009 3:47am Feb 3, 2009 3:47am
I dislike the terms support and resistance - really these are just areas where buyers and sellers are likely to be found, but even then that information may not be useful. How often does support and resistance actually hold and what information have we gleaned when it doesn't? All support and resistance is potential. Talk of confirmed support and resistance is even more misleading - the more a support and resistance level is tested the more likely that traders are going to notice it, but also the fact that price is hammering it should indicate a great deal of information about buyers and sellers in the market. Each time the level gets tested, limit orders get eaten up until there are none left, and all that exists are a whole bunch of stop orders on the other side, where there will be no 'support' or 'resistance' - these are the places on the charts that fascinate me, not really that bothered about the 'confirmed' support and resistance levels if they need to be hammered out so many times as the information that price gives around these area tends to be contradictory. Andrews' Pitchforks offer potential support and resistance and are a truly leading indicator, but even then the way I use them (without confirmation) they do not get respected that often, but when they do the R:R is excellent. It is only through the study of price action around these areas that the concept of support and resistance is of any use to my trading. These are just my observations though, each to their own of course.
  • #33
  • Feb 3, 2009 4:01am Feb 3, 2009 4:01am
Quoting birdt
I dislike the terms support and resistance - really these are just areas where buyers and sellers are likely to be found, but even then that information may not be useful....
could you give us an example of what you look for when you want to make a trade.

i try to use 1-2-3 patterns but i think there is so much more to be looking for.
  • #34
  • Feb 3, 2009 4:34am Feb 3, 2009 4:34am
Quoting Wallboroff
here is what i did.

i sold @ 1.4236 but went out to early but profit.

this is still my biggest problem knowing when to exit.
It is better to go out earlier and take a small profit then go out to late and lose some money. You should never be worried that you did go out too earlier if you have take a profit, becouse maybe if you will wait the market will turn towards you...

Dont be greedy, better more times litle pips then one time big lost.

Regards,
scorpionFX
  • #35
  • Feb 3, 2009 4:43am Feb 3, 2009 4:43am
Quoting scorpionFX
It is better to go out earlier and take a small profit then go out to late and lose some money. You should never be worried that you did go out too earlier if you have take a profit, becouse maybe if you will wait the market will turn towards you...

Dont be greedy, better more times litle pips then one time big lost.

Regards,
scorpionFX
actually no. i used to think the same way and unfortunately i did it again today ;-)

if you take little winners and accept the losers than you will lose. i traded a system with 50% winners.

i was still in profit because my winners were always bigger than my losers.

if you take small profits like i did today you should also have even smaller stops.
  • #36
  • Feb 3, 2009 4:54am Feb 3, 2009 4:54am
Quoting Wallboroff
actually no. i used to think the same way and unfortunately i did it again today ;-)

if you take little winners and accept the losers than you will lose. i traded a system with 50% winners.

i was still in profit because my winners were always bigger than my losers.

if you take small profits like i did today you should also have even smaller stops.
You are right, you sholud have bigger wins than looses. I think that you sholud try to put stop lose at S/R line which the price have broken and put the Target limit a little before the next S/R. And then if you have feeling to that the price will not reach your TL you can exit before.
  • #37
  • Feb 3, 2009 4:57am Feb 3, 2009 4:57am
Quoting Wallboroff
could you give us an example of what you look for when you want to make a trade.

i try to use 1-2-3 patterns but i think there is so much more to be looking for.
I think 1-2-3's are about as good an indication of a shift in market sentiment as you're going to get, and that is what I look for when I am looking to fade a S/R level, although I think the 5m is a bit 'noisy', unless you're looking for any excuse to get in. The first chart is an example of a fade I took from a pitchfork resistance level (doesn't matter what sort of resistance, it's all the same) last week and then added to it on a retrace. The initial entry was on a break from congestion up on the resistance which was enough for me to enter and then the addition was on a 1-2-3 from resistance. Unfortunately not every trade works out quite as nicely as that.

Often price will appear to respect a S/R level, but this does not mean that price is definitely going to bounce - the market still has to show its hand. I think this is where many traders go wrong, they see a 5m/15m candle and assume that price is reversing when the market has simply not given them enough information to make that assumption. It might be but I have found price to continue just as often. The second chart shows an example of that. Price runs up to a clearly defined resistance level, price pulls back a bit and then breaks through. Notice price also retraced back and retested this level again after.

Using both entry methods, the 1-2-3 fade and the 'Ross Hook' (a la Joe Ross) continuation trade, the entry points are clearly identified at the places where price has given us enough information through short term price patterns to indicate what it may do next. Of course sometimes it'll be entirely wrong but that's all part of the game.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 29012009baconatorwithextrasauce.gif Size: 24 KB
Click to Enlarge Name: 30012009gjcontinuation.gif Size: 32 KB
  • #38
  • Feb 3, 2009 4:58am Feb 3, 2009 4:58am
Here is the picture.
Attached Image (click to enlarge)
Click to Enlarge Name: gu8.gif Size: 10 KB
  • #39
  • Feb 3, 2009 5:08am Feb 3, 2009 5:08am
Quoting scorpionFX
Here is the picture.
any comments about your sl? why is it there? i put mine @ 1.4274.
  • #40
  • Feb 3, 2009 5:15am Feb 3, 2009 5:15am
Have you tried to make 2 trades both half of your normal position. Set a tp on one of them, and then use a trailing stop on the other to let it run perhaps?
0 traders viewing now