I am beginner can any give setup for trading support and resistance.
Thanks
Have you gone through these lessons in the Babypips School yet?
Trading Support and Resistance is a good way to get started and in my case, it was good to return to after trying some of the more esoteric methods like Bollinger Bands and RSI. Don’t go down those paths - they are dead ends. I guess my thinking was that S & R was too simple and I needed something more sophisticated - wrong.
Anyway its hard to explain S & R to somebody else until they have spent many hours in front of a screen watching bars form or looked at hundreds of screen shots. But perhaps by then, more help will not be necessary.
I myself am a huge fan of trading S&R with trendlines. I have since not favoured using indicators much since grasping the art of plotting S&R lines. This being said, there are many traders out there that trade using various indicators and it works for them. At the the end of the day, you have to find something that works for you… S&R is a great way to start but not the only way.
I agree with CodeMeister, S&R is an art, it takes a while to see where to plot the relevant S&R lines and you will find that many traders will plot S&R lines differently to other traders.
To keep it simple when you see a price has reached a certain high and has difficulty breaking that high, that would be a great zone to plot Resistance.
When you see a price that has reached a significant low and struggles to break that low, that would be a great zone to plot Support.
It is also possible to have more than one relevant S&R line.
e.g: You might find that a certain pair likes bouncing off a price of 1.0000 quite regularly, aswell as 1.0500. These price zones could act as Resistance for that matter.
To add to my earlier comments, one of the important things I learned from others was that S & R has to be treated as zone, not a line. When marking a chart, don’t use a line tool, use a shading or box tool and yes the zone is not a fixed width like 10 pips for the E/U. Another thing I learned is that S & R is very sensitive to volatility, but that isn’t something you need to focus on until later. The important first thing is lots of screen time.
Also it might help if we knew why you chose S & R and not some other method such as Moving Average. S & R is not the obvious starting point.
Once you’ve done this, practice marking support and resistance on your charts. Start off with Daily charts and mark the obvious levels. I personally use lines, although I agree with CodeMeister that S/R levels should be treated as zones. I just use these lines as guides.