How do I determine the highest point and the lowest point of Support and Resistance Zone? I mean how do I know when a trend is still within the Zone of support and Resistance and when it is out of the Zones? Is there a way of measuring the area of the Zone?
Identifying s/r zones isnt an exact science but once price penetrates a zone then bounces off of it and continues in the new direction with an occasional test w/o penetration thats usually a good indicator that a new s/r zone is in play.
A simple way to draw a zone is use a line chart to clearly see the turn and draw the zone 10% either side of the drawn line as the price will chop about and the zone is best guess
Are you planning on using SR levels as the actual entry, as a place to take profits or as a confirmation of your trade?
Thanks for this answer. But do you mean I should not regard wicks whenever I am drawing S/R and even trend lines?
As a confirmation
Honestly, I’d simply use moving averages.
Im.guessing you would be looking to place long trades above a certain moving average, or looking to short below the same moving average.
Its said time and again that support and resistance is a zone - so why not use something more definitive - a moving average?
Sounds ok. But what period EMAs is the best to use?
I think 15, 20, 30 are all good - it depends maybe on the timeframe and time length of trade you are aiming at
But generally speaking all of those will catch the kind of thing your looking for.
50, 200 tend to be longer term - but without an idea what you are planning to do i would suggest the shorter ones
All of the above
No quite sure what u mean - but if it means using them all - NO.
Choose one, maybe the 20.
Initially you can use Fibo tool; just use the higher-high & lower-low levels of your chart; it’ll help you to discover more important levels!