Hello traders,
How far back do you go when drawing support and resistance levels?
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It’s a very personal preference. Some people look back only a few days, while others review several months of data.
People don’t know this , but support and resistance should be done as follows
Go to the 15 min chart
Look for the last 2 green candles pattern breaking a high- that’s resistance ( true top )
Look for recent 2red candle pattern , breaking a low
That’s support ( true bottom )
If you don’t do it like this ( above ) your eating into stop loss hunters
I personally use 5 min and 30 min charts. How far would you go back on these time frames?
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Switch to 15 mins to follow big boys
Just do the two most recent that follow that criteria
Recent two green candle pattern and two red pattern ( most recent )
Look back is as far back as it takes
Both patterns must be breaking a high when th pattern in toe and breaking a low with pattern in toe
it would really depend on which timeframe you are looking to trade on, if your swing trading then higher timeframe is best. If your scalping then lower timeframe 1hr or 15 minute
It depends on your timeframe (of course).
If you’re trading from daily charts, I wouldn’t look back more than 6 months and I wouldn’t look back in detail more than 3 months.
I don’t use them much.
Many people wrongly imagine that touches and rejections of S/R somehow reinforce them.
In fact the opposite’s true: they actually weaken the levels. The reason’s obvious, if you think about it: each time the price pulls back to a level, the stop loss orders accumulate above/below it.