Basically the further out lines are stronger S/R. You'll notice lines like the 4hr,weekly, monthly, yearly lines are much further apart so the price is more likely to reverse. Also the more times a price bounces off a certain point the stronger it support or resistance. I just draw some main ones since I have been using this attached MT4 indicator which automatically plots the daily, weekly, monthly lines
. Sometimes the price will blow right through a s/r lines othertimes it will struggle and reverse. I have been trying to exit when it doesn't make a clean break because I am losing out on good pips from it pulling all the back to my exntry levels
. It doesn't do yearly but that is easy enough to add. I have also been learning how to draw trendlines which are awesome support a resistance as well as seeing which direction the trend is. You can zoom in on a 4hr or daily chart. I don't want a zillion line post so see Pipbulls post on how he draws them. I like them alot because you can almost predict when the price will reverse if its OS or OB and it near the long term trendline.
http://www.babypips.com/forums/free-...-thoughts.html
Quote:
Originally Posted by ahefner33
Hey Topgun
Sorry Im just getting to you. Been busy with school work and all. Thanks for all the info on the ADX.
Like always I have some other questions to ask. Based on the 4hr system by Vanessa, when you set up you s&r lines, how do you make your judgement on strengths? Also, how do you deal with so many pivot points because to me it seems like Im placing so many lines on my chart that there is never a good time to enter because Im near some line of support or resistance. I have attached a pic of my set up on GDP/JPY. Could you look at it and tell me what you would do different to the setup.
Red lines are my major S&R
Orange is my medium
Skinny black lines are my minor
Thanks a ton!
Adam |