Support level - Question

In Theory trading is simple: find strong support and resistance levels, place your orders before this levels, stop losses after and wait for the profit.

Good article here:

http://www.stockcharts.com/school/do...t_and_resistan

I’d recommend to stick to Support/Resistance (S/R) only on higher timeframes such as 4H and higher. On lower timeframes you get too much noise, and those who move the markets watch primarily the S/R levels on the Daily charts. You can transfer the S/R lines from higher time frames to lower timeframes. Remember that it is just a zone, markets are not perfect, and some pairs don’t respect S/R as well as others.

Also try invisible S/R such as Fibonacci, and when you get confluence of both, then the zone has potentially more significance.

yep, totally agree. in THEORY it is simple, but in practice this doesn't work consistently.

The simple answer; when I used to trade s/r I liked the H4 the best I think it provides a good balance between short term and longer term. But that's just me.

But if you want to take it a step further maybe don't think of the best levels in terms of mt4 time frames but think of it in terms of history...

Historically which levels are the most significant, which price levels are repeatedly bouncing and being respected. The more history you have for any S/R horizontal or diagonal the more people you can assume will be looking at that level. In this regard TF doesn't really matter its just a question of which best fits your needs in order to get the information you want, use multiple time frames, you don't have to limit yourself to one set

Billy Ray Valentine has a good thread on support resistance trading, the place I learn t most of the ideas I wrote above, just the first few pages would pretty much summarize it Io think if you cant be bothered reading the other million. lol who could blame ya

Hi.

Additional question how thick usually is support/resistance level? Or this is one line on the char - 1 pip. And we can say 1.37800 - is resistance for EURUSD?

This also depends on time frame. But this is never fixed value.

Hi .. i think that depends on what are you looking for .. when you want to scalp market (2 - 5 pips of profit) you can see in 5 minute charts .. when you want to make 20 - 60 pips .. you should look at 15 - 30 minute charts and when you are big trader, who is looking for hundreds pips of profit you should look to 4H and longer ..

Can you take a look to my chart and follow my logic.
http://img153.imageshack.us/img153/3976/chartm.png

Green line (4) is important, very important resistance level. We can place Sell order before it. Yellow line (1) Support lvl. Yellow line (2) another support lvl. Line (3) and (5) almost make the channel.

Try demo account first. Almost all broker provides demo account for free.