Hi all,
I have just started a demo account after losing all my money 18 months ago due to really stupid money management. Since that time, i have constructed somewhat of a system involving news, candlestic analyisis, patterns and support and resistant level.
The bits i’m struggling with are the news and support and resistance.
How does everyone follow the news. I knew nothing of the S&P downgrade until Friday evening. My brother than told me that a guy was on Russian TV (RT News) and he was 90% sure that S&P was gonna downgrade France. Where is this news coming from? Where are these hedge funds getting this info?
Secondly, i need help with support and resistance. I’ve gone through the Babypips school and have drawn all the S&R zones, i thought were significant. Now. have i done this right? What levels has everyone else gotten? Lastly does anyone have the S&R level for GBP/USD?
The first picture is all the S&R starting from when the EURO came into existence.
RED: S&R on the one day chart
ORANGE: S&R in the 4 hour chart
GREEN: S&R on the 15 min chart
The second chart is a clearer picture of a 4 hour chart over the past 3 years.
Thats fare to many levels to take account of on a single chart.
Try and make it more simple for yourself, or you are just going to become confused.
As far as your chart goes you may have drawn the levels on correctly, but the real question is how many of these levels are now actually important as price moves into them.
For example, using a minor level from a month back on a 15m chart will have no importance on price as we see it now.
Your best bet, is to play around with a live demo account, plotting on the previous levels and watch price as its interacts with these levels. You will soon come to see that some levels are laughed at, and some are taken more seriously. It’s the more serious levels that you want to continue looking at into the future.
It is indeed way too many. Here are some practical things to do
- As Jezzode said, play around with the following on live data - or just roll forward historical data having set some SR lines in the past for yourself
- Pick one TF, doesn’t matter which
- Look back over past 200-400 or so bars
- Draw 3-5 lines depicting only the turning points that you see agreeing most often. Don’t worry about precise placement - SR is a zone not a laser.
Right, now go grab a coffee, read the paper, check back in in a day or so (100-200 or so bars later) and, ta-dah! , you might see that the SR lines have held. Or not. 
Of course if you have some trades open that need attention, skip reading the paper.
Thats your most important part of information. Dont try and be pin pointing to the pip. It’s called a supp/resist ZONE for a reason
I agree, but surely there are some historical support and resistance that go back donkeys years?
Just pick out a couple of levels above and below where we’re at now. Anything more is just clutter - as price moves you can add / remove as you need to. Pick out the important levels where price had a strong reaction. Then maybe have a look at session high / low, daily high / low, weekly high / low, monthly high / low and the previous values for all those and that’ll probably be enough reference points to use to look for trade entry triggers based on whatever your criteria are.