Is This the correct way to Draw Support and Resistance

Hey Guys......

Can you please advise me if i drew the Support & Resistance line correctly.

I will also like if you can spare some of your precious time by posting links, template of your support and resistance lines or anything that you can think off that can help me draw support and resistance line accurately.


Your help to my learning is much appreciated.



Cheers

Find a zig zag indicator. Then you can plot horizontal lines at the zigzag points.

I use horizontal support resistance like gbppip

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SR based history level

mohamed: yes that looks fine. support and resistance doesnt just have to be on those big peaks and valleys though. it can be any level the price bounces off of, but you've got the idea. good job!

everyone else: dont just stick to horizontal SR. most of the time, diagonal SR levels are just as reliable as hrizontal ones. also, try not to use indicators to find levels or zones. use your eyes. your knowledge is the one thing that will consistently help you make the right decision. an indicator might not. plus, indicators like the zigzag dont show all the SR zones. they jsut show really obvious peaks and troughs. two problems with that: 1) you dont get some of the important SR levels in the market and 2) not all peaks and valleys are SR levels. you do have the idea though.

Hey Blacksun1 & the rest of you guys....

Thanks for the reply......I'm new to FX and i am working hard to understand the basic.....

Have a great FX day.


Cheers

Once you're comfortable with drawing a basic trendline, you can experiment with uses, modifications and varieties of the trendline, including:

Try built-in drawing tools that combine several trendlines,
put the fan drawing tool in a blank spot away from the candles to align several areas,
draw trendlines from the high, low of two candles or one or two one-pip candles,
draw two lines to measure and draw a trendline halfway between or placed outside of two approximately parallel, hand-drawn trendlines,
represent a news item's impact thru drawing a trendline from the moment it was announced,
measure divergence from an indicator (macd and other) versus the chart,
overlap trendlines from different TF's,
draw trendlines to discern patterns such as Gartley or a triangle,
connect the underlying trendline of one pattern into a consecutive pattern,
draw trendlines on volume, price spread or another indicator that's closely related to the chart and so uncover relations on the chart,
divide in half a trend that is close to a 45 degrees angle and naturally divides in half and draw a horizontal ray from that midpoint,
extend a trendline cutting through a relatively straight, 45-degree angle trend into a later portion of PA far above or below,
find a third pivot that compromises the vertical distance between two relatively vertically-close pivots,
and draw a horizontal line from a set of candles that average at the same price.

On MT4, you may want to occasionally right-click on the chart, go to 'properties' then 'common' tab, and fix scale to one-to-one or other. When you draw a trendline that crosses several screens, it jumps to two prices when you roll the screen in one direction without this.

Another good way of looking for S&R is to look for a collection of fractals around a certain level, especially pivot points.