I’m a newbie to forex and from my understanding support & resistance levels is key to trading & many people use this tool. My question is do you always have to sit in front of the computer and draw up support & resistance lines on the charts as this can be very time consuming? is there other way you can apply this technique without the need of drawing?
GREAT question and the short answer to your question is YES. There is no shortcut to drawing Support and Resistance lines/levels/zones on your charts.
Actually, for a (Naked) Price Action Trader having well drawn S & R lines is critical to the success of your trading. All trades original on these levels and if they aren’t placed or drawn properly on your charts you will miss out on valid high probability trades.
I’ve been trading for more than 26 years. I have a e-book on deals with the subject of Support and Resistance from a Price Action perspective.
BTW once you have drawn in and set-up your S & R Lines you should be able to save them in a profile to use them over and over again if you’re using MT4.
My apologies, very late reply as I didn’t get a notification to say someone replied to my thread. First of all thank you very much for your reply and also the file that you have attached, I will take the time to carefully read the file. Since I started this thread I’ve been learning how to draw support & resistance levels and trying to understand how much supply and demand effects trading…
Again I thank you very much for your time and cooperation, I’ll will get back to you once I’ve read your file …
A level suggests a predefined price that the market will react to. Generally, this is wrong. However, if you think as a zone (so a level plus or minus 5 pips, 10 pips whatever takes your fancy) then it becomes an area of interest. Activity inside this zone combined with time of day, day of week, week of month, will provide you with excellant trade opportunities.
There is also no right or wrong way to draw them, only your way.
Thank you very much for your contribution. you have a good point. I’ve been following the markets and noticed that prices always seem to bounce of certain zones, which as you mentioned gives a good opportunity. one of my major concerns are price momentum, can you suggest any method, indicator, strategy that helps to catch major movement?
Hi, Pointless thanks for the heads up, I been through the school and frankly learnt valuable information, however I find it more useful and effective asking questions to established members on the site whom provides in depth information which i am very grateful.
Always is a big word in the markets and one that probably best left for the gamblers out there. As far as methods, indicators, strategies. Sorry bro can’t help out there. The best strategy [B][I][U]ALWAYS[/U][/I][/B] is your own so you’ll have to figure that out yourself. Lots of good threads to get you going out there, read the 3 ducks and 16 candles and some piece of junk (the lords of the underworld hang out there, they know there stuff but speak with fork tounges.) And do take the time to go to school.
Then ask lots of questions, and answer lots of question, IMO one of the best ways to test and increase your knowledge is simply to participate in the forum. May the pip gods smile on you bro
I have to agree with you on the S/R Zones .
Price needs a breathing space or cannot be pin pointed to a horizontal or vertical line .
Zones allow for price fluctuations and moves are not always smooth or text book .
Using zones better suits real time trading .
For me, there is no alternative way; I basically mark out the S/R levels so willingly since, these types of levels help me a lot to understand the market.