This is something I probably should have asked a long time ago and may even have read it somewhere and forgotten.
When placing S/R lines, do you draw different lines for each chart or do you look for one TF to establish a single set of S/R lines, which you then copy across to all other TF charts?
A valid S/R line is a price level that PA respects. it would be valid on any time frame. The market does not care what time frame you drew the line on;) It may be easier to see where to draw a S/R line on a larger time frame but that level should be valid on a shorter time frame. Short term S/R would be a point that price respects for a shorter time and may blow right through. That type of line is not as helpful to a longer term trader.
I look at the middle band of the 60:2 BB(from 301 Moved Permanently) as short term S/R.
Drawing S/R lines on different time frames is a good idea. You will find that theres S/R levels on 1H/4H charts that doesn’t shows on a daily or higher time frame. The lower time frame you go the more S/R levels you’ll see.
By the same token, EVERY S/R level you note is less important by going to smaller and smaller a time frame- at least in my opinion. Finding S/R levels on 4H or 1H and higher charts are far more significant. When PA approaches these levels I jump to a lower TF to time entries, and watch PA at a finer level.
IMHO the S&R are only lines in big TF like 4h and above.
in 1H TF and below the S&R are more like S&R areas than lines.
in lower TF like 15M and below i use to consider the psicological S&R like the 00, 25, 50, 75 too because a lot of people use it to place SL, TP or pending orders.
You drill down from higher TF to lower TF. Starting with 1 month…1 week…1 day…4h…1h. The higher the TF the more valid the S&R. Drilling down from higher TF to lower TF the S&R lines will open up to S&R areas. S&R areas of importance show PA vibrations where sellers and buyers butt heads.
It’s fascinating, I really thought this question would be cut-and-dry and even felt a little foolish asking it. As it turns out, there are indeed different opinions on this matter.
cas, do you think one should stop at 1H and just copy S/R lines from that and higher TFs onto your 15m chart?
What’s your preferred TF of choice…? First question to ask yourself. TF of choice is your base.
Let’s assume it’s 1h. You draw all S&R lines from higher TF on your 1h TF. I would even use different color for each TF S&R.
You do the same with 2 TF below your TF of choice…if it’s 1h you copy S&R on 5m,15m also.
Then you got all TF covered and need to go up only to get the full picture.
Also you’re set in all TF’s and can initiate trades from whatever TF you wish because they all got the same S&Rs marked.
The D1 and W1 highs and lows are the only levels you need to watch. When price makes a new daily or weekly high/low, there will be price action that can be exploited for profit. There is no need to focus on any other levels. The benefit is you will not over trade if you use these levels.
There is more than enough price movement through and from daily highs/lows to hit any reasonable daily goal. Remember, price usually breaks before it retreats.
