You could just start using the big figures like 1.3000 1.2000 and the mid levels at 1.3050 1.2050 and look for reactions there instead of trying to plot your own.
If you do plot your own start by looking for the obvious levels on the higher time frames like weekly and daily, even if your day trading use those as your levels. On the daily chart use the bodies of the candles and the previous days highs and lows. The lower the time frame you use the less reliable they will become.
Could someone help me please? I've done the schooling on s and r levels both from pips and ICT.
I am really struggling with pinpointing the s and r levels does someone have a tool or indicator which would highlight the levels. I am hoping to day trade so would probably look at the last 3 days?
Sorry to trouble you
there's your problem - highlighted in bold. S & R levels are not pinpoints, they're fuzzy zones. some people / traders draw them at the highs of a candle, others at a close, and they use various timeframes so the S&R levels can vary a bit just from that. just use your eyes. some zones will be quite narrow, some will probably be fuzzy / messy due to historical levels.
the only indicator that i've ever seen that kinda helps to pick them out was when i was trading stocks. it was a volume-by-price overlay, and on a chart it would overlay a horizontal bar and the length of the bar (starting at the left edge) would indicate how much volume had happened at that price level. um, lemme see if i can explain. horizontal axis is time, vertical is price. you have your normal set of candles to show trades happening. in a gray overlay, there's these bars shooting out from the left edge at each price point, the longer the bar the more volume regardless of time.
kind of like this. the horizontal gray/red bars jutting out from the left are volumes at that (vertical) price:
Last edited by SoundOfLight; 07-21-2012 at 08:16 AM.
Search the forum before making another thread. The exact same question is 3or 4 threads from this one. As i said on that one forget indicators especialy for support and resistence. No one is going to tell you exactly how to trade. You have to spend hours and hours studying price movement and figuring it out for yourself.
Also, in my opinion choosing a static stop loss and not changing it on each trade is crazy. Stop losses should be dynamic and changed according to s/r, swing high/lows etc.
the best indicator which will help you pinpoint support and resistance is in you: your EYES.
best for you to use it from the onset. Your skill in detecting support and resistance will sharpen over time. (agree with jamessheppard)
SoundOfLight is right, they are usually zones, not exact prices.
S and R levels are at best, fuzzy and no indicator is going to point the exact level for you, review last nights market, check the high and lows, and try to plot your own support and resistance levels. And agree that static SP is nuts, just my 2 cents
When looking at a chart, look for clear places where price has reacted. If you can't spot a support or resistance level fairly quickly, most likely neither can any other traders. It will take some screen time to get the hang of it.
I'm a newbie but am I wrong in thinking that you should see them visually & with tool for plotting Fibonacci (assuming there's a trend) then it should be even more obvious.
I just covered Fibs in the school so my interpretation may be wrong.