Can you have too many S&R zones?

Beginner Questions
1

I sometimes wonder if I’m drawing too many S&R zones on my 4hr charts.
Usually, it’s plain and simple to see but every now and then I get a cluster of 3 zones all within 100 pips - this seems too many.
Any thoughts?

eg 0.8968 on this chart

2

Have you downloaded and looked at nickb’s free ebook method? He uses S/R for the most part and no indicators, according to the e-book.

I think as general rule he keeps his major support and resistance 100 pips apart. Anything else, that doesn’t hit one of those but suddenly reverses is considered a scalp line. Check it out, he has easy to understand basic guidelines for setting up major support and resistance.

The main thing to check is to scroll back and see if your S/R lines are hit often in the past. In his book he says for the major ones he goes back as far as five years.

3

Hi Phnx,

May I have the link of NiCk B free ebook?

4

It’s posted here, right on this site. NickB, is one of babypips bloggers.

Do a search on nickb here. If you can’t find it here, where I got it, go to forex4noobs.com I believe he either runs or is bigger part of that site.

5

Keep mindful of S/R, but pay more attention to price action. Price will let you know how strong a particular line can be.

6

For a beginner, it is best that they start putting a single resistance line and a single support line on their preferred trading timeframe and see how price react at the resistance and support lines. When the resistance and support are broken, look for another resistance and support and watch how price reacts there again. Once you are more confident you can put on more lines. :slight_smile:

7

1 more way is you can draw s/r lines around your price only?

for example 1.3000ish or 1.2000ish