Zoom in to H1.
Support from 206.67 - 202.97.
Old resistance at 203.80 could be support in the coming week.
Zoom out to W1.
Old trendlines turned on for big picture view.
Price below all support trendlines.
Resistance at 205.40.
Brandon, another source to learn from that I have found useful is at fx nation live dot com, just google that or dc bonta. He offers a variety of paid services which you can use your own judgement about, I am not recommending them necessarily … however every day he posts (for free) support & resistance levels for the 4 major with explanations of why they are s/r. I check them each day and gradually have been learning to recognize them myself.
Love your kanji name, I’ve been trying to learn kanji ever since living in Japan 2 years ago … it ain’t easy 
Another way to look at S/R.
The highest/lowest highs/lows over the last 5, 10, 20 and 40 bars.
Hey ‘Sweet Pip’,
Sorry: I only saw your post and questions now.
I’ve attached a chart showing what I meant by using Linear Regression Channels to indicate the current trend.
I’m not sure that you could use them for a breakout strategy PURELY because the move depending on the price action. I suppose you COULD ‘overlay’ a ‘static line’ at the close everyday and if you get a close durging the next day above or below the ‘static lines’ then it could possibly be deemed a breakout. Take a look at my thread (you know the one) to see what I’m using them for i.e. they’re being used in conjunction with Wilder’s RTS (basically they’re being used with Pivots) and it’s working well.
To someone else that asked about fractals:
To be honest the only platform that I’ve seen that comes ‘standard’ with fractals is GCI Financial’s (or any other broker that uses the trading platform developed by ACTForex i.e. ICTS-Wintrader). To set them up yourself though is no ‘biggie’. Here is a nice ‘concise’ explanation by Bill Williams:
‘A fractal pattern on a bar chart (of any time span) consists of a minimum of five consecutive bars. Our working definition of this initiating fractal is that the middle bar must have a higher high (or lower low) than the two preceding bars and the two following bars.’
And strangely enough my ‘mentor’ i.e. J Welles Wilder Jnr. details a very ‘similar’ ‘concept’ i.e. a ‘Key Reversal’ day is day where the second day opened higher (or lower), had a higher high (or lower low) , and closed lower (higher) than the first day.
I’ve had great success determining breaks of support or resistance using fractals i.e. a close above or below a fractal is indicative of a breakout.
What are the best free indicators to put automatic S & R levels on the Metatrader 4 charts?I really need something like this.
There’s the horizontal line tool already on MT4, pick your time frame, zoom out then place your lines at levels you see that price hesitated. You really dont need it done automatically.
Attached are two indicators, one will calculate daily, weekly or monthly pivots (or all 3), the second one is a rather cool trend channel maker, I use this one a lot on 15’ and 60’ charts.
AutoPivotIndicator.zip (20 KB)
In addition to Kageins response I would say that this is an important skill to develop. Whilst not decrying automatic ways of doing things the ability to take a chart and mark it up yourself so it makes sense and is helpful to [U]you[/U] is an invaluable one. Like all skills it takes time and practice perhaps over thousands of charts to become good at it. The point about useful to you reflects the fact that different analysts will interpret a chart in their own way (unless they follow one of the systems that defines how these things are done) but that is OK as long as it assists you in your decision making. Like so many things in fx (and life!) there are no easy short cuts. When you say that you really need something like an automatic way I detect a hint of desperation in your request. That is not the mind set for trading. If you are having difficulties identify what they are and go back to that section of the school to sort it out
Hello,
OK: now that I could log in to GCI (cannot login over the weekends) I could finally post a chart with fractals for you all.
I agree with everyone (just by the way) that you need to be able to identify support and resistance yourself. What I AM saying though is that the fractals at least give me a ‘place to start looking at a glance’.
What’s interesting to note is that whenever a fractal is formed the price has retraced (which is ONE of the reasons that Bill Williams’ ‘Profitunity System’ is slightly ‘flawed’ i.e. the system would have you buy or sell when the price reaches the fractal. In my experience this is a problem ‘of note’ for the simple reason that nine times out of ten you’re buying at resistance and selling at support!!! Big problemo!!!).
This is turning out to be a great learning experience. Much appreciated for everyone’s input.
I’m posting a picture of a recent chart (5/26/08 - 16:00 GMT) on the EUR/USD H1 chart that I drew S/R lines for and I’m hoping for some feed back.
Are they drawn correctly? If so what strategy would you use for entry signals? If not what should I change?
Thanks
I let the computer draw the trendlines AND the support/resistance lines.
I don’t see your support/resistance lines plotted.
I don’t think in terms of right/wrong.
Instead, I think in terms of profitable/not profitable.
What you seem to have drawn is trend lines.
Support/Resistance lines are parallel to the horizontal axis.
Thanks for the great info everyone!
S/R on attached chart in Swing (Fractal) Indicator.
I’m still learning, and probably always will be learning,
how to use it! Simple but, fascinating to see the market
reveal itself with fractals.
But can’t trend lines act as S/R? I thought that trend lines could be used to find S/R for a break out.
I’ve attached the same chart (EUR/USD H1 5/27/08 0100 GMT) after the break out.
These may illustrate the point a little better than I can,
Symmetrical Triangle (Continuation) - StockCharts.com
see also,
While trend lines (and Channels) are a type of S&R I look at them in that they work basically for that particular trend’s retracements and continuation movement, but if you wonder why a trend stops and reverses or breaksout, then it may be because the trend hit a horizontal S&R level that has a little more meaning to it from the past.
A “trend” can also “range” between “major” horizontal S&R levels but their retracements & continution movement may not happen at the same levels as the last up or down trend, and if it does, then I suppose those could be considered “minor” S&R levels.
Horizontal S&R lines also gives you a target to watch for because you don’t know how long a trend may last based on it’s own lines and if you see it nearing a horizontal S&R then it gives a price to start watching more closely to either get in at, or out at.
It gives a more complete picture to use both I feel. 
Hey ‘akeakamai’ 'buddy ‘ol pal’.
Long time no hear!!!
OK: I don’t want to start a discussion on Stochs here (and yes by this time I reckon I can spot ‘good’ divergences). Let’s agree to disagree shall we. I only trade the daily timeframes and longer so it would be counter productive for me to sit and wait for ‘good’ divergences using Stochs i.e. not enough trades for me. Differents styles but if Stochs works for you then great. Put it THIS way: if you’re ONLY trading the divergences then good and well BUT if you pick up ANY trading manual the ‘common’ belief is that when Stochs are in overbought territory then it’s time to sell and visa versa (yes wait for the lines to cross blah blah blah). Like I said: Stochs for USD/CAD were in oversold territory for a YEAR aside from the odd ‘blip’ up (OK I’m exaggerating but you get what I’m trying to say). Now I just KNOW that some people (not me BY THE WAY) would have looked at Stochs and bought and ended up waiting for the price to turn and believe me it would have been a very expensive wait!!! (There is EVEN a ‘system’ somewhere on this site that would have you keep buying every day as long as Stochs were in oversold territory and hold on to the positions until Stochs turned and went into overbought territory. I can assure that had you traded that ‘system’ on USD/CAD last year you’d either have wiped out account after account OR you would have needed LOADS of $$$ to KEEP ‘propping’ the account up and even THEN you would probably not have made a profit in the end because of the interest that you would have been paying). Just my opinion based on what I see is all and a warning to anyone else i.e. make sure that you UNDERSTAND whatever indicator you choose to use i.e. just ‘plonking’ an indicator on a chart based on these ‘one liner instructions’ that normally accompany most indicators (especially on the Internet) is a recipe for disaster!!! (By the way: if I’m looking for ‘good’ divergences I’ll stick with Wilder’s RSI thank you very much)!!!
Is there a thread anywhere that teaches divergence … it is something that I still have a hard time wrapping my mind around. Or if now, maybe someone who understands it well could start one?
Take a look at this webpage there are some good ebooks,
Forex Books for Beginners, Download Free Forex E-Books
look at "Hidden Divergence � by Barbara Star, Ph.D.“
also
"Reverse Divergences And Momentum � by Martin J. Pring.”