I’m now looking at the 4HR AUD/USD charts.
My question now is - how far back do I zoom out before I decide on placing my resistance or support lines? Is there a wrong or right way to go about doing it?
Should I be basing my resist/support lines on ‘special’ candlesticks’ like tweezers morning stars etc?
I’ve decided to place my lines as follow:
U looking for short or long?
thanks, i know can both short from the horizontal resist and long at the diagonal support.
i just want to know if the lines were draw correctly. or if there such a thing as correct or wrong S/R lines
10 traders will likely give you 5 or more different answers. Find what works for you.
Go with the daily chart to pick S&R levels then you can go lower for entry.
depending on the timeframe that you use, you should zoom back as far back as possible.
if you are looking at a daily chart or higher, you do not need to zoom back too much.
generally, you should base your lines on price action, not necessarily on ‘special candlesticks’…
the lines you drew were ok.
i do not think there are ‘wrong’ S/R lines… you can probably qualify them as strong and weak lines.
S/R lines, trend channels, price action and any sort of naked trading is the best for me, however you must see and track your own lines because you wanna be ahead of the crowd, that is why indies might not work because everyone are atching the same.
IMO since it is an uptrend, (confirm it with daily TF) dont take any short position to reduce the loss %… If for me, i will wait till it rebounce from the support below. Then go long and tp at closest resistance or u can swing it until it retrace. Add horizontal support for more accuracy and confirmation.
if i follow your train of thought, many people watch the same S/R lines, trend channels, and price action. in all fairness, they sometimes fail as well. in all fairness, all these tools including indicators can and does work.
