[POLL] How do you draw S&R and trend lines? | Forex Factory

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[POLL] How do you draw S&R and trend lines?

  • Poll

  • How do you draw S&R and trend lines?
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  • #1
  • First Post: Nov 24, 2009 6:09am Nov 24, 2009 6:09am
Question in the title.
  • #2
  • Nov 24, 2009 6:50am Nov 24, 2009 6:50am
highs and lows of course! Close prices are only random prices, sometimes near the average, sometimes elsewhere, but never with any special meaning. They are different on every timeframe because they are just arbitrary prices taken at arbitrary points in time without any importance over any other price at any other time.

Highs and lows instead are the turning points, the only prices that can define S&R and trend lines, they stay constant, they are the same on all timeframes because they are independent from meaningless time. (meaningless for S&R)
  • #3
  • Nov 24, 2009 7:30am Nov 24, 2009 7:30am
I agree. On the other hand, I do count on closing prices, but only on the 1H and 4H chart. I use them to see if they break a certain level, such as S&R, but also trendlines.

I don't realy use that as a signal to take a position. I'd rather stay away when it happens and wait for a trend reversal to be confermd.
  • #4
  • Edited 7:59am Nov 24, 2009 7:44am | Edited 7:59am
But that was not realy an answer to your question.
I draw channels on the daily, trendlines + S&P-levels on the 4H and 1H chart. I do that by connecting the highs and the lows. I'm not realy an expert, certainly not, still learning a lot from the forum and my mistakes ofcourse http://cdn.forexfactory.com/images/icons/icon7.gif
I then use my strategy on the 30M to take a position.
Also the DP, R-and S-levels are important to me.
  • #5
  • Nov 25, 2009 4:57am Nov 25, 2009 4:57am
Personally, when drawing S&R lines I recognize shadow of a first candle, but then, disregard shadows of subsequent candles.
  • #6
  • Nov 25, 2009 5:27am Nov 25, 2009 5:27am
Depends. I can use either, depending on the surrounding price action. I think those who pick one or the other will often identify levels incorrectly.
  • #7
  • Nov 25, 2009 5:50am Nov 25, 2009 5:50am
Quoting 7bit
highs and lows of course! Close prices are only random prices, sometimes near the average, sometimes elsewhere, but never with any special meaning. They are different on every timeframe because they are just arbitrary prices taken at arbitrary points in time without any importance over any other price at any other time.

Highs and lows instead are the turning points, the only prices that can define S&R and trend lines, they stay constant, they are the same on all timeframes because they are independent from meaningless time. (meaningless...

I'm with you, but I need a confirmation, S&R drawing is not a exact science to me.
  • #8
  • Nov 25, 2009 5:59am Nov 25, 2009 5:59am
Trend lines. Add this if you are on mt4 platform. It uses the classic DeMark method to be swing low must have 2 higher low candles on either side of lowest candle and opposite for upper TL's.
Attached File(s)
File Type: ex4 DeMark lines.ex4   25 KB | 507 downloads
  • #9
  • Nov 25, 2009 6:31am Nov 25, 2009 6:31am
Quoting Cain
I'm with you, but I need a confirmation, S&R drawing is not a exact science to me.

Here it is, no confirmation.
Attached Image (click to enlarge)
Click to Enlarge Name: sr.gif Size: 26 KB
  • #10
  • Nov 26, 2009 7:48am Nov 26, 2009 7:48am
Quoting Vantage
Trend lines. Add this if you are on mt4 platform. It uses the classic DeMark method to be swing low must have 2 higher low candles on either side of lowest candle and opposite for upper TL's.
thanx for posting you indicator. testing it. look pritty good on first sight.
  • #11
  • Edited 9:38am Nov 26, 2009 7:57am | Edited 9:38am
Quoting 7bit
Close prices are only random prices, sometimes near the average, sometimes elsewhere, but never with any special meaning. They are different on every timeframe because they are just arbitrary prices taken at arbitrary points in time without any importance over any other price at any other time.
huh... are you sure?
some people trade HLC bars (high, low and close of a given period).
Closes are fuken important, H1 and upwards imo.

Never seen a buying flurry at [hour:55] just to pull the hourly close high? Then the new hour begins and bang, price drops like hell.

On the other hand, I'd like to disagree with fetishizing H/L values - on some volatile pairs like GBP/CHF it means nothing most of the time if price turns here or 5 pips lower or higher. Again sometimes the market is dead accurate.

Generally my point is not to disagree with anything you say just to draw your attention to rethink ANYTHING is "100% sure and always so" in the markets.
forget about tomorrow, just steal away into the night
  • #12
  • Edited 9:29pm Nov 26, 2009 9:23am | Edited 9:29pm
To me, s/r lines are horizontal lines, as one of all trendlines of any angle, that form support and resistance. They may be temporary, which is usual, or permanent, as with 00/50 lines. s/r lines also serve the purpose of centering the price-time line; perhaps another name would be centerlines. Limits on the effectiveness of a TL represent on the chart with dots, line segments, rays, and lines.


Okay, for the question --
What was asked, to me, was how people draw TL's and especially s/r lines between candles, between the bodies or the entire candles.
If there's significant contrast within the candle, that's a valid reason to use only the body of the candle (doji, spinning top, single-pip candle). Else, I use the entire candle.
A note: Magnified view of a one pip spread candle reveals high variation, that is, a body with a possible shadow there.
  • #13
  • Dec 2, 2009 6:03pm Dec 2, 2009 6:03pm
Quoting spekitox
huh... are you sure?
some people trade HLC bars (high, low and close of a given period).
Closes are fuken important, H1 and upwards imo.

Never seen a buying flurry at [hour:55] just to pull the hourly close high? Then the new hour begins and bang, price drops like hell.

On the other hand, I'd like to disagree with fetishizing H/L values - on some volatile pairs like GBP/CHF it means nothing most of the time if price turns here or 5 pips lower or higher. Again sometimes the market is dead accurate.

Generally my point is not to disagree with anything...
actually, no. closes are not important in Forex. in stocks and futures, where there is a daily close and trading doesnt begin again til morning, they do matter, but only on a daily chart. in forex however, there is no standard closing time for the market, therefore a close plays no important part in market activity.

remember, almost all the tools, indicators, and ideas for forex came from the stock and futures market. but the forex market is entirely different than the other two so some things wont apply the same way.
  • #14
  • Last Post: Dec 2, 2009 8:09pm Dec 2, 2009 8:09pm
For the most part, I don't draw them (or anything else) at all.

Just monitor the trading activity around large Evens for S/R.
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