Can you please give me some examples of perfect (or good) support and resistance lines? How do you draw them?
Thanks in advance!
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Support and Resistance | Support and Resistance Levels | Elementary
I think because support and resistance lines are subjective, and because not everyone trades them, there’s no such thing as a perfect line. You’ll see markets turn or break often at them, but don’t expect a certain technique to work every single time.
In Forex nothing works all the time, it is all subjective, that is why we analyse a method/system
to find out it’s win/loss ratio.
There is very little subjectivity when it’s done right. Opens and closes are more significant than highs and lows. You don’t need them scattered all over your chart. You only need the ones that are closest to current price.
Find recent close / open on a monthly chart both above and below current price, then do the same on a weekly chart then a daily chart so that will give you 6 lines maybe go to a h4 chart and you’ll have 8 lines. Keep in mind higher time frame trend for some context also keep in mind average daily range, how much juice is left in the battery. I general the higher time frame lines are more significant, in general the more opens and closes on a line the more significant. Try to grade your lines as strong medium or weak. That should get you off to a good start.
True there’s no such thing as perfect lines or perfect anything for that matter.
Just goes to prove the cool thing about trading, [B]different strokes for different folks[/B]. 
Based on my trading experience highs and lows are much more significant than opens and closes.
I pay lots of attention to the high and low levels, especially when price breaks them, hardly any attention to open & close levels.
“Just goes to prove the cool thing about trading, [B]different strokes for different folks[/B]. ;)”
Very true my friend! Let’s remember that there’s also more to a trade than just drawing lines on a chart. There’s the trade management aspect of it, which is probably more important since charts are changing all the time.
So after putting all those lines on your chart price respects all of them
100% of the time?
Fibs, Daily
If the markets were perfectly predictable, we could draw perfect support and resistance lines. But of course they aren’t, so we do the best we can with data that contains a lot of noise and is open to interpretation.
Baby pips school, just check out the module on S and R…good luck
d-pip you’re right, I guess it depends on what way you get used to looking at it. You’ve heard the acronym wysiwig a guy I used to work with came up with another one. wyliwyl (what you learn is what you like) 
and I shouldn’t have said “when done right”. What is right for one person may not be right for someone else. I just know of something that works for some people.
daydreamer, no not 100% of the time obviously but enough of the time. There’s no such thing as perfection. In trading there are losses, you have to accept those and move on.
ah but this is all technical analysis and we all know that can’t work in the long run, it’s like killin bearhs wid a buttah knife heh.
edit: I should clarify what I meant that there’s not much subjectivity. Assuming a group of traders are using the same broker they will see the same highs and lows and the same opens and closes. In the few skype rooms I hang out in most end up with sr lines that are close.
– Watch yer top knot pilgrim!
Hallo,
By ‘perfect’ I’ll assume you mean “reliable”.
Hope below resources will be of help.
Cheers
Fibs 4H is pretty dang reliable
Here was my projections for this week i made on Sunday.
In the identification of “perfect” support and resistance, there are basically four elements to consider;
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How price reacted to this level in the past (held, became a breakout – pullback level, bounced violently or mildly?
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How significant is it (lower time frame, higher time frame, held for how long?)
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How is price reacting or responding to it now
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What is the speed or impulsiveness price is approaching it now
Though its quite hard to achieve perfection in the markets, these four pointers are a reliable guide.
Checkout some of these really useful articles on identification of support and resistance levels
The Best Support and Resistance Levels Part 1 | 2nd Skies Forex
So exactly how should a trader approach these levels?
keeping in mind that institutional traders will also be watching these levels, the market volumes will definitely surge due to an influx of more orders.
Here is a simple approach on trading support and resistance levels:
Trading Support and Resistance Key Levels | 2nd Skies Forex
Check out this PA thread for more of the same
http://forums.babypips.com/newbie-island/45414-understanding-price-action-chris-capre-244.html
Hope this helps
DAny
Thanks man! Great resources!