I’ve read from a couple of resources that support and resistance of the current time frame and as well as one timeframe longer are important, and not any further. I would like to know if you all think like that too.
For example: If you are trading on 1D, you look at 1W time frame too for support and resistance and ignoring 1M. Similarly, when trading 4H, you look at 1D too and ignoring 1W. Is that right?
What do you guys think?
At the moment I am trading using the Daily Timeframe. I also draw support and resistance using this timeframe only.
Multiple timeframes help but like anything else one can over analyze. I use a larger time frame to determine S/R levels and market structure. I use a lower time frame for entering also watching S/R levels here also. Once in I go to a lower TF to determine exit points.
Well, I basically follow D1 and most of the time ignore W1, but for day trading I also use H4.
If you’re trading on daily time frame and it’s near monthly support would you go short?
This was a rhetorical question of course.
I suggest you use Monthly,Weekly and Daily High and Low as Support & Resistant…do not use line chart to mark S/R.
why not use a line chart? I find that they work well for finding S/R
If you place randomly horizontal line in your chart,price will seem to have a reaction to that line.So,we can consider that line also S/R?..To my knowledge,professional trader use Monthly,Weekly and Daily as S/R,we have to decide which kind of S/R to use…no such thing as zone S/R.
You don’t know what you’re talking about. you just said two contradictory things. You said random lines seem to have reactions which implies s/r is not useful, then you said professionals use s/r. So which is it? Make up your mind.
I see price reacting to PREDEFINED s/r zones every day. Maybe that’s too advanced for novices. I already posted some examples elsewhere.
End of transmission.
It depends on the current scenario. You should check upper time frames also. For example, you are trading on D1 and current price is near a weekly support or resistance. So you should check just to see that the price is in a good position. Hope it gets it.