Hi guys, i am new in trading and i have an important question. Which one is the correct support line (the one in the middle)? Picture 1 or 2? Thank you.
Use a line graph to make it easier for you to see support and resistance. This looks like an upward channel, I’d say picture two looks correct. To find support and resistance you would be required to do time frame analysis, you won’t find it by channels.
It seems to me the bulls lost momentum and price is heading downwards.
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I think, 1st picture is much better; although I see, there is no usefulness of your 3rd number line!
These lines are not universally defined and accepted. They are not like DNA, they are not the chart’s finger-prints. We are not in a science lab.
There is no doubt we could find some brokers’ charts and commentators and experts’ charts with both lines (and more) drawn on them. So finding confirmation for one or another doesn’t really prove anything.
The value of these lines is to help you see your trade, and your trade might be different from someone else’s. They are bad at showing what the market will do, but good at showing you what you could do. You could develop a trade plan using these lines as support or resistance and you might make money. Importantly, the plan should use its own logic to show you where you should get out if the plan does not work. Its not bad to use a plan that fails but its very bad to let that failure kill your account.
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Look at my ORANGE LINE
but the real question is
what are you trying to determine from these lines
as @tommor told you , it’s not a science
and you need confirmation from several sources to confirm something
the bottom green line (in my opinion) is pointless, it tells you nothing
Your top line is valid and if price breaks it, you can assume to a degree that price is going up
before drawing lines, you need to know WHY you are drawing them