Support and Resistance

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

How to draw support and Resistance in 1 Hour chart?
could you share examples?

2

Hello again my friend. Again, I have asked Copilot of Microsoft Edge the same question you have raised. Have you tried using any AI engine to get you started with such basic questions? A forum is not the place to ask if you haven’t spent a little time trying to find answers that will then enable you to ask questions to build your understanding from the basics.
And when used along with the Babypips Forex trading education modules, it should start to make sense. Don’t try to run too fast. You have all the time in the world. :pray:

Enjoy. You

How to draw support and Resistance in 1 Hour chart? could you share examples?

Copilot

Drawing support and resistance levels on a 1-hour chart is essential for technical analysis. These levels help traders identify potential reversal points, entry and exit points, and areas of interest. Let’s explore how to draw them and provide some examples:

  1. Horizontal Support and Resistance Levels:
  • Method: Draw horizontal lines using at least one price-point.
  • Purpose: Identify key levels where the price has previously reversed.
  • Example:
    • Look for swing highs or swing lows where the price retraced.
    • Draw a horizontal line connecting these points.
    • These levels act as barriers for price movement.
    • !Example1
  1. Trendline Support and Resistance Levels:
  • Method: Draw upward or downward sloping trendlines using at least two price-points.
  • Purpose: Identify trend direction and potential reversal points.
  • Example:
    • Connect two or more swing highs (for resistance) or swing lows (for support).
    • Extend the trendline to the right.
    • !Example1
  1. Fibonacci Support and Resistance Levels:
  • Method: Use Fibonacci ratios to identify potential reversal points.
  • Purpose: Determine the end of a price correction.
  • Example:
    • Apply Fibonacci retracement levels to a significant price move.
    • Look for confluence with other support or resistance levels.
    • !Example1
  1. Dynamic Support and Resistance Levels:
  • Method: Levels that update with each new price tick.
  • Purpose: Adapt to changing market conditions.
  • Example:
    • Moving averages (e.g., 50-period or 200-period moving averages) can act as dynamic support or resistance.
    • !Example1

Remember that support and resistance levels are not fixed; they can shift over time. Consider using multiple timeframes (e.g., daily, weekly) to validate these levels. Also, be aware of confluence—when different types of support or resistance align at the same price level. Happy charting! :chart_with_upwards_trend::herb:

For more detailed insights, you can explore resources like My Trading Skills2 and TradingwithRayner1.

3

You could draw S/R lines til the cows come home. None of it matters unless your strategy validates your reasons for drawing them.

I used to draw trend lines a lot. I loved them. That is until I realized that the market wasn’t respecting them. Backtest your S/R lines and see what results you get.

The answers you seek are in the charts.

On second thought, if you don’t know how to draw S/R lines, learn here.

4

Thank you so much friend

5

Thank you so much