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Support level - Question

  • #1
  • First Post: Feb 11, 2011 6:24am Feb 11, 2011 6:24am
Hello, guys. Have a question. From what time frame you can get real support line. 1 hour, 1 day? And is there any difference in support line logic between different currency pairs.

P.S. Will be appreciated for all answers and highly appreciated for answers with screenshots.
  • #2
  • Feb 11, 2011 11:38am Feb 11, 2011 11:38am
Ask yourself what is the real timeframe to trade. The answer to this question will be the answer to your question.

Just my 2cents opinion. Cheers.
  • #3
  • Feb 11, 2011 12:04pm Feb 11, 2011 12:04pm
Quoting ash234
Ask yourself what is the real timeframe to trade. The answer to this question will be the answer to your question.

Just my 2cents opinion. Cheers.
this sums it up pretty well.

it doesn´t matter that much on which timeframe you draw some lines it´s more on which timeframe u like to trade.

there is no difference between support line logic between currency pairs.
  • #4
  • Feb 11, 2011 6:58pm Feb 11, 2011 6:58pm
i beg to differ support are/should be the same in all time frames


take a look at different time periods, if there is an area where price has bounced back more than twice thats ur support.
what might look like a skinny leg of a candle stick hitting the same area x2 on a daily might really look like support on a 1hr chart, PRICE MUST have trouble breaking through

it doesnt change. if price cant break through 1.35 for example it cant break through 1.35 as simple as that
AVT INVENIAM VIAM AVT FACIAM
  • #5
  • Feb 12, 2011 5:06am Feb 12, 2011 5:06am
What is support and resistance? What causes support and resistance?
What if there is no support and resistance?
  • #6
  • Feb 12, 2011 6:25am Feb 12, 2011 6:25am
If no support and resistance, then no trade

Quoting ash234
What is support and resistance? What causes support and resistance?
What if there is no support and resistance?
  • #7
  • Feb 12, 2011 6:31am Feb 12, 2011 6:31am
sell on resistance .
buy on support.
  • #8
  • Feb 14, 2011 6:10am Feb 14, 2011 6:10am
Quoting szhnn
sell on resistance .
buy on support.
Don't forget about SL and TP orders.

Bigger timeframe - higher possibility that support or resistance level will be confirmed. Also important to remember, that each broker has a different time setup, so some chart look different.
  • #9
  • Feb 14, 2011 6:39am Feb 14, 2011 6:39am
Quoting the redlion
i beg to differ support are/should be the same in all time frames


take a look at different time periods, if there is an area where price has bounced back more than twice thats ur support.
what might look like a skinny leg of a candle stick hitting the same area x2 on a daily might really look like support on a 1hr chart, PRICE MUST have trouble breaking through

it doesnt change. if price cant break through 1.35 for example it cant break through 1.35 as simple as that
Thanks guys for answers and opinions.
  • #10
  • Feb 14, 2011 6:44am Feb 14, 2011 6:44am
A trade setup should help us to identify areas of possible support and resistance:
1. A support level will not only exist in an uptrend; it should also confirm the uptrend.
2. A good resistance level will not only exist in a downtrend; it should also confirm the downtrend.
After determine the possible support and resistance, we will be able to decide what our preference should be – whether we should be looking to buy or sell.



Then, the identification of potential support and resistance levels to allow us to:
1. Place precise stops that when triggered provide evidence the potential support or resistance level has failed
2. Enjoy profits when the potential support of resistance level holds.


The trade plan tells us how to take advantage of our setups. There are plenty of techniques for entering trades, placing stops, and exiting positions. In my opinion, the very fundamental of an effective trade plan is it should support and confirm our setup.


In a nutshell, if our setup has found a potential support level, our trade plan should expect the market to move higher before committing to a trade. Similarly, if we have found a potential resistance level, our trade plan should wait for lower prices before committing to the market. In other words, if we have support, our entry price should be higher. If we have resistance, our entry price should be lower. When trading, it is good practice to assume our setup is wrong until the market proves it right. For both situations, weplace stop at a level we believe the methodology’s analysis will be proven wrong.


Just my 2 cents after learning from Daryl Guppy and Brent Penfold.
  • #11
  • Feb 14, 2011 8:54am Feb 14, 2011 8:54am
Are there support and resistance on 30 minutes chart?
  • #12
  • Feb 14, 2011 12:47pm Feb 14, 2011 12:47pm
lets just simplify support and resistance,

USUALLY whole numbers are support and resistance.
its hard for a currency to go from 1.20 to 1.30 everything else in between its usually imaginary lines.

SUPPORT: a price that a security has trouble passing downwards for example
Attached Image (click to enlarge)
Click to Enlarge Name: chart.PNG Size: 20 KB



In reality SUPPORT really is demand, at 1.30 investors, believe its a good price to buy driving the price upwards. then they begin to become scared that buying above 1.38 might lead them holding the highest price, and will take a loss, so everyone decides to sell, and down goes the price

this gives you an idea of what the market believes its a bargain and what it believes its overvalued.
if you see the smaller support line (blue) prices time and again bounced back and that last red candle is below that line and will probably have trouble bouncing above it

USUALLY SUPPORT BECOMES RESISTANCE

once it breaks people dont think is much of a support so they begin to sell at that point MAKING IT RESISTANCE

THERE IS REALLY NO SUPPORT AND NO RESISTANCE. just supply and demand

HOW LOW ARE PEOPLE WILLING TO SELL, HOW HIGH ARE PEOPLE WILLING TO BUY
AVT INVENIAM VIAM AVT FACIAM
  • #13
  • Feb 21, 2011 3:09am Feb 21, 2011 3:09am
Quoting the redlion
lets just simplify support and resistance,

USUALLY whole numbers are support and resistance.
its hard for a currency to go from 1.20 to 1.30 everything else in between its usually imaginary lines.

SUPPORT: a price that a security has trouble passing downwards for example
Attachment


In reality SUPPORT really is demand, at 1.30 investors, believe its a good price to buy driving the price upwards. then they begin to become scared that buying above 1.38 might lead them holding the highest price, and will take a loss, so everyone...
Thank you for a good answer. "HOW LOW ARE PEOPLE WILLING TO SELL, HOW HIGH ARE PEOPLE WILLING TO BUY" So this " parameter exist on all time frames - difference only how strong are they willing.
  • #14
  • Feb 21, 2011 4:59am Feb 21, 2011 4:59am
Quoting Donnald
Thank you for a good answer. "HOW LOW ARE PEOPLE WILLING TO SELL, HOW HIGH ARE PEOPLE WILLING TO BUY" So this " parameter exist on all time frames - difference only how strong are they willing.
Rule is simple: Higher Time period of the chart - more people are interesting in some "support or resist level". Eventually, there can be one big trader standing behind some point one the chart.
  • #15
  • Feb 21, 2011 8:35am Feb 21, 2011 8:35am
@the redlion:

Question to your chart.
Point 1 - resistance?
Point 2 - Support?
Point 3 - Break of support?


http://img834.imageshack.us/img834/5756/47537680.png

  • #16
  • Feb 21, 2011 9:20am Feb 21, 2011 9:20am
Has anyone tried to determine supoort and resistance levels with power laws : http://en.wikipedia.org/wiki/Power_law
  • #17
  • Feb 21, 2011 9:36am Feb 21, 2011 9:36am
most important is to make weekly s/r levels, after that daily, if you have weekly break, count monthly...
  • #18
  • Feb 21, 2011 9:56am Feb 21, 2011 9:56am
Quoting purley
Has anyone tried to determine supoort and resistance levels with power laws : http://en.wikipedia.org/wiki/Power_law
Have you looked at Pitchforks?
  • #19
  • Feb 21, 2011 12:21pm Feb 21, 2011 12:21pm
Pitchforks is not on the list of power laws


Examples of power law functions

  1. The Stevens' power law of psychophysics
  2. The Stefan–Boltzmann law
  3. The Ramberg-Osgood stress-strain relationship
  4. The Inverse-square laws of Newtonian gravity and Electrostatics
  5. Electrostatic potential and Gravitational potential
  6. Model of van der Waals force
  7. Force and potential in Simple harmonic motion
  8. Kepler's third law
  9. The Initial mass function
  10. Gamma correction relating light intensity with voltage
  11. Kleiber's law relating animal metabolism to size, and allometric laws in general
  12. Behaviour near second-order phase transitions involving critical exponents
  13. Proposed form of experience curve effects
  14. The differential energy spectrum of cosmic-ray nuclei
  15. Square-cube law (ratio of surface area to volume)
  16. Constructal law
  17. Fractals
  18. The Pareto principle also called the "80-20 rule"
  19. Zipf's Law in corpus analysis and population distributions amongst others, where frequency of an item or event is inversely proportional to its frequency rank (i.e. the second most frequent item/event occurring half as often the most frequent item and so on).

  • #20
  • Feb 22, 2011 3:22am Feb 22, 2011 3:22am
Quoting Allan
@the redlion:

Question to your chart.
Point 1 - resistance?
Point 2 - Support?
Point 3 - Break of support?


http://img834.imageshack.us/img834/5756/47537680.png

Point 2 and 1 Are correct. More times price hit r/s level, stronger r/s level is.
Point 3 you can't claim break, as price didn't go to another direction.
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