Need help for simple question: Who got the right S&R levels? | Forex Factory

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Need help for simple question: Who got the right S&R levels?

  • #1
  • First Post: Jan 6, 2013 2:47am Jan 6, 2013 2:47am
Although there is an almost standardized calculation of daily pivots along with the support and resistance levels, I can't fail to notice that different brokers have different server times which affect the levels significantly. See below, I'm comparing 5 different brokers, each with their own S&R levels for 1H EUR/USD. So is this a matter of choosing the right broker?

We have to know which levels the big players are using. That's how we can benefit from these levels. I'm guessing the reason why S&R are not very dependable is because Tokyo's players are using different S&R compare to London's and New York's. It's the cliche that everybody looks for different things on the same chart.

Would appreciate any enlightenment on this question. Many thanks guys.
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  • #2
  • Jan 6, 2013 6:43am Jan 6, 2013 6:43am
Hi!

Maybe the best SUP/RES are those that your eyes see...
Best Regards!
  • #3
  • Jan 6, 2013 6:53am Jan 6, 2013 6:53am
If you draw your Fibonacci levels they are mostly the same among all brokers. Same goes for marking supply and demand areas. I guess you have them yourself
  • #4
  • Jan 6, 2013 10:31am Jan 6, 2013 10:31am
What robertk said is spot on. Gotta make them yourself.

What does support and resistance tell you? I mean, like, what is it telling you what's actually going on behind the charts? For me, each S/R level is a probably area of profit taking, while certain S/R may be over-underexposed meaning more likely to reverse/correct.

Marking them, I'll use the idea of supply/demand in that a drop-base-drop or rally-base-drop are things I look for. (vice versa, too) Or, just like trend lines, I'll use tops/bottoms or highest/lowest open/close. I mark them with an H line, obviously.

But in reality, there's no right S/R levels, because there's just too many of them just like trend lines and then different timings mess things up, different TF will make new levels and blah blah blah.
Play the players, not the cards.
  • #5
  • Jan 8, 2013 3:07pm Jan 8, 2013 3:07pm
I seriously doubt that the "Big Players" will pay any attention to daily pivots.
As already posted, it really is much better to look at areas where price has reacted and draw your own S/R levels.

I know that there are many fans of Daily pivots and the mathmatically generated S/R levels, but you could simply draw random lines on your charts and you will see price react to these just as often as the DP levels.

Your post actually proves how useless DP are.
5 different fans of DP may all have different broker times and different DP levels, yet they will all swear that the DP levels on their charts have some sort of magical properties. They see what they want to see
Please Do Not PM Me With Coding Enquiries
  • #6
  • Jan 10, 2013 2:49am Jan 10, 2013 2:49am
just draw them yourself from what you see on the chart.
Twitter: @forexpokerpro
  • #7
  • Jan 10, 2013 3:45am Jan 10, 2013 3:45am
Quoting BBPI_fxtrader
just draw them yourself from what you see on the chart.

Yes, I also recommend it. Make it simple. Try to draw S & R levels for higher time frames.
  • #8
  • Jan 10, 2013 3:46am Jan 10, 2013 3:46am
Quoting Hatzerim
Hi!

Maybe the best SUP/RES are those that your eyes see...



Yep
  • #9
  • Jan 10, 2013 4:46am Jan 10, 2013 4:46am
Quoting Ishtana
Although there is an almost standardized calculation of daily pivots along with the support and resistance levels, I can't fail to notice that different brokers have different server times which affect the levels significantly. See below, I'm comparing 5 different brokers, each with their own S&R levels for 1H EUR/USD. So is this a matter of choosing the right broker?

We have to know which levels the big players are using. That's how we can benefit from these levels. I'm guessing the reason why S&R are not very dependable is because Tokyo's...



None of these people know the answer to the question but they are prepared to spout some bullshit. Sometimes this place makes me despair.
Gone to a better place
  • #10
  • Jan 10, 2013 4:59am Jan 10, 2013 4:59am
Quoting smikester
None of these people know the answer to the question but they are prepared to spout some bullshit. Sometimes this place makes me despair.
Wouldn't say its bullshit at all. Do you have another solution for this problem then Smikester? My own brokers are closing its 1D candle at NY close. How in the world would I know if those are the "correct" levels? At least by observing supply and demand you have more certainty. Can't think of any other solution for this problem. I think you are the one that came up with the biggest bullshit unless you have your own solution. Feel free to post it.
  • #11
  • Jan 10, 2013 5:14am Jan 10, 2013 5:14am
Quoting smikester
None of these people know the answer to the question but they are prepared to spout some bullshit. Sometimes this place makes me despair.
It may not be bullshit because there is no answer to the question.
Daily pivots and the mathmatically calculated levels of S/R don't work.
Yes, if you believe in them they appear to work when price goes 10 pips beyond a level and then reverses. The same can be said for almost any random line drawn on the charts though.
With a bullsit indicator, you will get bullshit replies
Please Do Not PM Me With Coding Enquiries
  • #12
  • Jan 10, 2013 5:25am Jan 10, 2013 5:25am
Quoting Robertk
Wouldn't say its bullshit at all. Do you have another solution for this problem then Smikester? My own brokers are closing its 1D candle at NY close. How in the world would I know if those are the "correct" levels? At least by observing supply and demand you have more certainty. Can't think of any other solution for this problem. I think you are the one that came up with the biggest bullshit unless you have your own solution. Feel free to post it.
http://lmgtfy.com/?q=calculating+the+daily+pivot+point
Gone to a better place
  • #13
  • Jan 10, 2013 5:45am Jan 10, 2013 5:45am
Quoting smikester
http://lmgtfy.com/?q=calculating+the+daily+pivot+point
He is referring to a broker/timezone (who) got the right S&R levels with the use of auto calculating indicators. There is no solution for this problem unless you either use your own observation on supply/demand whatsoever, or yes, calculate pivots yourself and compare them to autodrawn pivots or something. Nice add Image gave me a good laugh nonetheless
  • #14
  • Jan 10, 2013 5:47am Jan 10, 2013 5:47am
Quoting Gumrai
It may not be bullshit because there is no answer to the question.
Daily pivots and the mathmatically calculated levels of S/R don't work.
Yes, if you believe in them they appear to work when price goes 10 pips beyond a level and then reverses. The same can be said for almost any random line drawn on the charts though.
With a bullsit indicator, you will get bullshit replies
That does not answer the question, though. That's just your opinion. I don't use pivot points and I agree to some extent.
Gone to a better place
  • #15
  • Jan 10, 2013 5:51am Jan 10, 2013 5:51am
Quoting Robertk
He is referring to a broker/timezone (who) got the right S&R levels with the use of auto calculating indicators. There is no solution for this problem unless you either use your own observation on supply/demand whatsoever, or yes, calculate pivots yourself and compare them to autodrawn pivots or something. Nice add Image gave me a good laugh nonetheless
Just goes to show the value of automatic indicators. Completely useless unless you know what they are indicating.
Gone to a better place
  • #16
  • Jan 10, 2013 6:30am Jan 10, 2013 6:30am
Quoting smikester
That does not answer the question, though. That's just your opinion. I don't use pivot points and I agree to some extent.
Just recently noticed your posts.
I like your style

Ok to the OP, if you insist on using Daily pivots, then choose a broker that only has 5 daily candles per week. If youir preferred broker(s) have 6 daily candles then open an account with a broker such as FXPro that DOES only have 5 daily candles. You can open a demo account and use this to decide when to trade and place the trades with your preferred broker.

My preferred broker has the stupid small Sunday candle, and I use an FXPro demo account to do my analysis. I also use the demo account for trying out different things so it is useful.
Please Do Not PM Me With Coding Enquiries
  • #17
  • Edited 7:29am Jan 10, 2013 7:16am | Edited 7:29am
Support and resistance was one of the hardest things for me to learn about and I am still learning. Screen and chart time is the only real answer, I believe. But I will share a revelation which came to me via a trader called Plutonite. At the time I was a newby and learning about trend lines. Plutonite said something about horizontal support levels and I said nonsense, dynamic levels (eg trend lines or moving averages) are much more important. Well I was wrong and you learn from being wrong. Thanks to Plutonite I went on to study horizontal S/R lines so here is an exercise for anyone who wants to learn about price action around these lines.

Take the Eur/Usd chart and apply a Donchian Channel (price channel) indicator, set for about 28. Pull up a monthly chart and draw lines wherever the channel flat lines for 6 months or more, but not in 2012. Again for the weekly, but not in 2012. You can do this on the daily as well, if you must, but only use London times (why?)

Now observe the hourly chart for the last 12 months and observe price behaviour around the lines you have drawn. You wouldn't want to trade into one now, would you?
Gone to a better place
  • #18
  • Feb 23, 2013 9:19pm Feb 23, 2013 9:19pm
I didn't read the entire thread but I thought I should give my thoughts since I had a similar problem. I noticed the s&r levels in the sonicr trading system (tah templates) are quite good. I assumed all pivot s&r level were the same? Maybe its highlighted better but it works for me.
I love forex. One day it will love me back.
  • #19
  • Feb 23, 2013 11:11pm Feb 23, 2013 11:11pm
Support and resistance itself draws from more primitive elements as to why it would work - supply and demand. Once you finally dig deep enough to figure out the most fundamental reasons behind price movement, you may have a chance of escaping this cycle of learning. Blindly stabbing at swing highs and lows will bankrupt you though. Even price action at these areas is often manipulated to draw suckers in.
  • #20
  • Feb 23, 2013 11:59pm Feb 23, 2013 11:59pm
Quoting Ishtana
Although there is an almost standardized calculation of daily pivots along with the support and resistance levels, I can't fail to notice that different brokers have different server times which affect the levels significantly. See below, I'm comparing 5 different brokers, each with their own S&R levels for 1H EUR/USD. So is this a matter of choosing the right broker?

We have to know which levels the big players are using. That's how we can benefit from these levels. I'm guessing the reason why S&R are not very dependable is because Tokyo's...
Once you compared the 5 brokers levels and if the one who suit you best isn't yours, just calculate the daily pivots from the open/close times of the other broker.

But you will profit far more to learn how to draw supply and demand zones instead. They are the real levels and they are not based on brokers times.
MT4/MT5 EAs/Indicators/Alerts coder
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