MY ‘SIGNIFICANT’ SUPPORT AND RESISTANCE - Macfibo Aid
The last thing I want to do now is to overcomplicate things. So, once you see the chart and don’t know what I am talking about, just ignore it and keep things to the utmost basics. I just want to share my thought process for next week. Identifying significant S/R is vital in my trading. The chart below (levels) are the several moves I am anticipating for next week and will plan react accordingly.
Objective Method Identifying Support And Resistance
I firstly pick previous day’s atleast for the past 3-5 days previous hi lows and mark it and see how many times had it been tested as both Resistance and Support. I mean, today’s support can be tomorrow’s resistance. Vice versa. If the level have been tested atleast twice, I will keep it in the chart (or mentally remember it, or write it in a posted notes and stick it where you can see).
Incase you ask the following questions :
Why past 3-5 days? Isn’t the last say 10 days high lows is not important? : It is still important but EU ranged between 120-150 pips so I am focusing on S/R levels that is within that range at the time of my trading day.
Does the day’s high and low have to be tested twice inorder for it to be qualified as ‘Significant’? : Not necessarily. It is worth noting though because it could be a place where price could reverse again. It helps if some strong reversal signal occur in the previous hi lo area. But I take more attention on previous high lows,that is within the range, that had been tested more than twice… the more the merrier.
Do you see higher timeframe to plot ‘Significant S/R Levels’? : I do but I will not take any attention from it if it still far away from current price action. Like I said, within the range.
Can I ignore S/R Levels and just trade Macfibo and TP at the fibonacci levels : Ofcourse you can! 
Will having S/R Levels improve the effectiveness of Macfibo? : I believe less is more in Forex Trading. More indicators mean more conflicting signals. Same with this. If you think it just confuse you even more, just trade Macfibo in how it suits you. Based on how I trade and my personality, having S/R levels doesn’t ruin my ‘objectiveness’ approach in trading, it might ruin yours.
You mentioned Daily/Weekly Pivot, how about those? : You can add it to the chart as well. But I recommend just use previous day’s high lows. How I use the daily pivot is a bit different. But thats for another day.
Which is more important? Macfibo Levels or S/R Levels : I can only answer based on how I analyse and trade. I look at the Macfibo Levels first then I look at S/R Levels. If the levels almost equal (1.618 with previous hi low), then I will tp it at 1.618, if S/R level almost equal to say 200.0… well… I still tp at 161.8… those ‘remaining’ space can come in handy in ‘re-entry’ signals.
Of course, I use fixed SL and TP since I cant be there monitoring all the time.
