I’ve done some research about this topic but didn’t find anything. So, is the answer obvious, or am I bad at researching things?
I’ve started trading two months ago. And even though S&R theory seems clear to me, I can’t figure out how long should we consider them.
I mean… if I go back to 01/01/2000 on the charts on D1, I have tons of S&R to draw. Back now, I would have hundreds of lines on my screen.
Are they all valid? Which ones should I consider the most? The oldest ones? The newest ones? The busiest clusters? If they are all valid, how could I avoid trading paralysis?
I hope I’m clear enough. I’m not in the “english language” mood right now.
It really depends on what is your trading style. I’m an intraday trader who would typically use one daily Asian market session from the last high and low price wave movement to closure - which could be just an hour’s worth of 5M candles - to define a trading zone that could be broken out at the London opening session.
Simplicity is the key.
BTW - don’t get hooked up on S&R, it’s an unreliable guide - supply and demand is a more reliable indicator.
Support and resistance also depends upon your trading style, your market session and time frame you use then you do not need to look for all support and resistance lines.
basically you determine what works via trials and errors. Important thing is to make lessons from losses and build statistics of wins and losses because working approach becomes visible in 100 or 200 trades, 1-2 trades are not representative
I think support and resistance are important indicators but as a traders we must see other dimensions of the trend also like with the help of MACD and RSI it is easier to know the traders sentiment whether bulls are up or bears
One place where many traders find its practical to ignore s/r levels is in long-term trends. Classically, in an uptrend ignore resistance, in a downtrend ignore support: the trend usually wins against the counter-trend indications.
I guess that support and resistance reversals have no actual time of lasting, they occur permanently. So, you always have to look at the graphics and not only your work timframes, you’re obliged to look at higher timframes mainly to point the support and resistance levels, you know. So, if you trade on M5 then you have to look at the H1-H4 or even D1 to point whether trend will be reversed or it will continue its movement up or down. Everything is intuitively I think, you can count it only by analyzing and practicing of course. Just watch and wait for the best entry point, by this steps you will master this theme.
The entire point is you don’t know support and resistance have strength until they no longer do due to buying or selling pressure overcoming them. You’re not trying to predict how long they will last you’re trying to ride the movement based on what happens at those areas looking for a break or price repelling from those levels which is confirmed by candlesticks or price action.
If you place key level horizontal lines at the precise top of highs and bottom of lows going from the monthly, weekly, daily, 4 hour, and even possibly on the 1 hour, you can see if and how price has reacted to these levels in the past, and determine the likely probability of price reacting to these levels in the future. When combined with reading candlesticks, and candlestick patterns, and indicators such as the stochastic oscillator, MACD, RSI, RVI, and the 365, 180, 90, 60, 30, 15, 7, moving averages, force index, momentum, TSV, along with looking at trend-lines, supply and demand, each currencies currency index, you can find good low-risk/high-reward entries, and probable exit points, and finding good low-risk/high-reward entries and and knowing when to exit and being satisfied and content with your profit is the key to success in my opinion, because double dipping or profit chasing tends to cause people to lose money. Let the trade, and the profits come to you. Use this power for good and to help people please.
