identifying support and resistance

just a newbie question, how would one identify support and resistance levels, i mean there are so many from classical to woodies etc. which are the strongest or valid S/R lines, can anyone shed light on this subject.

what i tend to use "natural" support and resistance levels i.e. what i can see with naked eye be it weekly, daily or 4 hourly...anything to establish some strong S/R

many thanks

sam

take a look at these...i am sure that wud help u a lot

http://www.investopedia.com/articles...#axzz1iKjSjL7D

http://www.babypips.com/school/suppo...esistance.html


I will say that the strongest S/R is the, particular S/R level where price doesn't penetrate/break through more than 2 times ....

Just read those articles..There would be diagrams too

have a nice day

I will normally use monthly and weekly pivot levels which serves me well as 'leading' support levels as well as support/resistance levels that can be drawn based on what you able to see, though this is more of a subjective view depending on how a trader see. Another support/resistance level i find that serves me well is the 20EMA on the daily chart and psychological round numbers with 00s.

normally if the candles/wicks is able to bounce off/touches 3 or more times the support/resistance lines you have drawn, it is a valid line and will offer you more insight to future possible price behaviour near these lines. The key is to keep practising identifying and drawing your levels, and you will get the idea of how strong your support/resistance lines will be.

thank u guys for that input....

the AUD/USD is a good pair for practicing support & resistance lines as price will bounce or blow through them a lot

hi Tredley, would u agree that audusd is one of the pairs thats "acts" as or "obeys" like a textbook example when it comes to S/R, like u say it when it reaches S/R either its bounces off or shoot thru it. just a thought

sami