Hello friends, can any of you tell me how to identify key supports and resistances?
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It’s not something I look at, I don’t find s/r levels reliable enough to be helpful. There isn’t a definitive method for doing this but I’m sure some members here will tell you how they personally do it. Just be sure that they are consistently profitable through using s/r levels.
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I trend trade utilising S&R levels which are highlighted by past candle movement and PSAR 0.09-0.50.
My trades look for trend candle movements and the PSAR balls show where the previous S&R option was made, and is extremely useful for where to set up a T/P for the new trade.
In other words where a likely price action movement range would reach as previously.
Many ways to find support and resistance.
Here are some you can consider trying out.
If you have access to market depth data with a trading platform like NinjaTrader you can try using numbers bars or volume at price.
Otherwise.
Can try trend lines from highest high to next high and lowest low to next low so that you snap the points to the highs and lows and the lines don’t cut through any candles or wicks.
Or open a chart of higher timeframe to what you trade and mark with horizontal lines the highs and lows of significant price turn around points.
Another option is eyeballing a chart to see where price has traded sideways and multiple candles overlap.
Also you have the option of using various technical indicators. Eg 100 simple moving average.
And another person has already suggested another way they find support and resistance.
At the end of the day the best advice would be to try and find someone with real professional trading experience working on a large trading floor and dealing with huge sums of money. And honestly I’m not one of these experienced people but not many people on this forum are either.
Hi, couple info from me about S/R, of course it is general.
S/R should have at least two areas (more = better ) to identify
S/R is mostly discretionary method, that means, each trader can see different S/R area
S/R are zones not one point on the chart where the market can stop or break
S/R on higher time frames are most important than on lower time frames
Support became resistance / resistance became support are stronger than single S/R
pin bar / undecision bar could be potential S/R
Regards Greg
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