Quote:
Originally Posted by 4xStar
Thanks for sharing the charts, one thing I just learned, I draw way too many s/r lines LOL. Had to erase quite a few.
|
You don't require too many strategically plotted lines to be honest. Like the girls have said many times on here, they're merely guide posts to offer a little each way gauge on the potential reaction zones as price gets batted back & forth along the route.
A little tip (which quite a few newcomers to this type of price activity have found beneficial on these instruments) is to look immediately north & south of where price is NOW (on a 5, 15min or 30min chart) & see if there is a busy zone or two of interest in close proximity first.
When price is making fierce, aggressive moves up & down the ladder like this it can be difficult to plot your watch levels with any degree of efficiency. Sometimes you need to look a little closer to home before stretching out into the higher timeframes.
What I tend to do is simply take a look at the smallest timeframe I generally utilize, & work up/down from there. It just gives me something to get a hold of when price is banging around in between my bigger watch levels from the higher timeframe charts.
You only really need two or three close proximity levels to work with whilst price is going about it’s intra-day business. Once it breaks away from these initial close proximity levels, then you can scroll out to the wider zones of interest to help you on your journey.
I’ll give you an example of what I mean here on the pound-yen 5 min timeframe.
The larger levels are still intact from the chart Tess posted up earlier, but I’ve plotted a couple closer proximity zones to keep my eye on if price decides to make a move back up to test out the momentum.
Try not to overcomplicate it. Just look for area’s on the technical chart where the bulls & bears had a little minor scuffle or difference of opinion! Those levels will quite often repeat themselves on back & forth movements until one side or the other wins the battle.