Hi. I’ve been demo trading for 3 months now and I’ve finished the babypips school. So here’s my problem, when identifying support and resistance areas, I tend to overcrowd the chart. Is there any way to identify the best support and resistance lines from different timeframes. What are your criteria for plotting support/resistance?
Unless you are day trading, I only put S/R on D or W charts. That should cut down
the clutter some.
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I use Daily and 1H. My criteria for plotting is that it must at least touch 2 or more points. Previous resistance turned support and vice versa. And the highest swings and lowest lows. But it’s still a lot. Its getting more like a hindrance than it should be helping me.
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Plot it on the higher time frames I use monthly there aren’t many monthly levels so its difficult to identify too many levels
Just plot daily s/r. Then see how that affects your trading.
Can you post one of your charts? Maybe I can compare to my analysis. Everyone draws SR differently, but you’re right, overcrowding can create issues.
Personally instead of horizontal support and resistance I much prefer trend lines. From highest high to next high for resistance and lowest low to next low for support. These levels seem to work quite precisely. Try it out and you will be amazed.
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Diagonal trend lines are even more subjective than horizontal S/Rs. My suggestion is to never use diagonal trend lines.
Rather than S/Rs, identify 3 major swing points above and below price. The market moves from swing point to swing point. When price closes above a swing point, the probability of it going higher increases. When price closes below a swing point the probability of it going lower increases. This is also one way to tell when a trend might be changing.
Study supply and demand zones. Here’s one useful video on how to identify and mark them. Sam Seiden (hope spelled correctly) is the king of supply/demand. See his videos on YouTube.
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Draw support and resistance at highest and lowest swing points. By this way you will have some fewer lines. And try to understand how price moves, by this way you may not need to draw lines. Just by looking at the charts you Will know where are the levels.
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One of the most important skills in forex trading is the process of finding support and resistance. Normally, prices will fall to a certain level and then rise again. If you see the price bounce back from this level, check that level as support. The same applies to resistance levels.
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This is how it looks like on my Daily time frame. Then I go to 1H for possible trade entries on price action at high confluence areas.
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Thank you for your input! Very much appreciated. 
Wow. Thank you so much for this and for the video link. It really is helpful and provided me with some more insights. Hopefully I can perfect my strategy and be consistently profitable.
Yeah the levels you have drawn are absolutely fine. As you do day trading, you need to know all the levels. So as long as it is helping you, it is completely okay.
Hi it is always wiser to deal with higher time frames, depending on your trading criteria but if you are a day trader then l recommend 4hr and daily since lower time frames shows a lot of noise unlike higher Time. That is basically working for me
Please can I see a graphical representation to understand what you mean.
No such thing as noise on lower time frames.
For me, I’ll say you draw S&R on monthly chart, go to the daily timeframe and try to adjust those monthly S&R to your taste. Capture only the OBVIOUS level in each timeframe.
To the 4H & 1H timeframe, you don’t need to draw any S&R. But if there’s an opportunity to capture an obvious level, then do it.
Here is my method of using trend lines as support and resistance. As you can see from my sample there’s nothing subjective about this method. Highs to highs and lows to lows. Simple like primary school connecting the dots.
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Great illustration.
One thing it made much clearer to me (I think slowly) is that diagonal s/r lines offer early signals for entries into trend-following trades. A good entry for example into an uptrend could be signalled by the bounce of price off a risking diagonal support line. Of course, any significant price recovery off a significant pull-back would do but what does “significant” mean? The support line highlights the probable end of the pull-back and the bounce off it will be obvious.
In the same context, a late entry, possibly fatally late, would be when price breaks upwards through a previous high.
Many thanks.
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