First time support/resistance

[Broucke]

Hey there,

I’m in elementary at this moment and just read about support and resistance levels

Is this a correct line of support? (3 point to verify the line)

[Album] Imgur

thanks for your reaction

[mlawson71]

I usually place it at the bottom of the candle wicks.

[Broucke]

Damn, so it was kind off a lucky strike then that it went up from there

[GetKnowTrading]

Support is drawn in uptrend where you connect higher lows to see where the trend is heading.
Image you have is downtrend so you should draw a resistance line by connecting lower highs.

But what you have done is draw a channel with support and resistance line which gives you trend heading. As you can see it is pointing down.

First point you have marked is not clear low because few candles before you have lower low. But you can connect last two marked points and make a line to see where channel is heading.

On the image below you can see resistance line that connects several lower highs and second line that also connects several lower highs that was not included in first trend line.
Area between those two lines is area where resistance is so you can also make two lines on your chart if there is lower lows that are not possible to connect with only one line.

You should watch that you connect as much is possible highs or lows(depending what do you draw - support or resistance line) but not to cut the candle body.

If you cannot draw a clear trend line do not force it.

[mlawson71]

That is a really good and detailed explanation, thank you for it.

[PanchoVilla84]

Hello,

S/R lines are horizontal price levels or zones, the examples above are trend lines.

[johnftseman]

was waiting for someone to post that. yeah channels are not pitchforks either.a very common newbie mistake.

[tommor]

As said, some good clarifications given above on drawing these lines.

I agree the end of the wick is the key point along a trend line - BUT - on a daily chart if either the high or low of the candlestick’s range is also the open of the bar, ignore it. Opening prices vary between different sources as there seem to be several ways of identifying the opening price after a closed session and of displaying this on a chart. For example, some daily charts always show FTSE100 opening prices as identical to the preceding close, there are never any gaps. Likewise, charts / data from different sources show different opening prices for the same market.

[U9917067]

Hi

I am all new here in the school. I was all new at support/resistence and trendlines. I am currius, what is the perfict time frame to draw trend lines? It can not be to smal, beckous they are to fast outdated, if you not are a scalper, And beckous we talk about trends, I see long and big trends. But also how the index can catch up on the dayly basis.

[Broucke]

I would like to know aswell ^^
At this moment I take 1hour candelsticks most of the time

[U9917067]

I refere to the article about candlesticks with support and resistensce in Elementory. I can not post a link to it, beckous I am a youser. What is the perfict timeframe on the candlesticks? For a trend-trader, or daytrader. And what is the perfict timeframe for the candlestick in the elementory for both this strategies?

[ABFH117]

A line is significant if it also coincides with a major line on more than one time frame. These major support and resistance levels that also coincide with major lines on other time frames are known as Dynamic Support and Resistance Levels where price most certainly reacts the most.

Find these lines on higher time frames like the Daily and Hourly and then scale in to smaller time frames to see if they coincide with support and resistance levels in lower time frames on your chart.

Identifying dynamic S/R lines is a must if you are a mean reversal or break-out trader. But not entirely important if you are swing trader trading minor retracements. However dynamic support and resistance areas lines are hot spots areas where professional traders look for for opportunities to squeeze out amateur traders. It would make sense then to draw your lines so that it coincides with dynamic s/r lines to ensure that you enter the market with a high probability winning trade.

[Elden_Caramba]

this might help.

What I do is calculate pivot points, then shift the levels except mid level to the most touches. so you will know that the level is authentic.