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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Consider these alternate versions. And I’m sure if you give these charts to 3 other people you will likely get 3 differently drawn trend lines.
It’s too subjective!
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Yeah - you could enter some folks’ charts for the Turner Prize.
They look like Kandinsky paintings !
I just happened to watch a good video on this. One thing I learned is that say you see a support area on a shorter time frame (1hr), you should zoom out (4hr or 1D) and also look for support areas and see if there is a bigger support area lining up with your shorter time frame support. This helps to confirm that it is indeed a significant area of support. I’m also still learning but it seemed a good idea to keep this in mind as well.
Even trend lines can prove to be very helpful.
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Hey there, well it is pretty simple. You just need to have at least 2 pivot points to identify a support or resistance (check image) .
Learn how to identify pivot points and you will always be able to identify support and resistance
I think you have drawn them perfectly so don’t worry your head about the clutter on your charts. You can use two methods to decrease the subjectivity when drawing S & R.
- Use your indicators as confirmation: if price crosses from either the overbought or oversold region into the indicator range at a particular price level for two or more times, it confirms that price level as a strong S/R point.
- Use a line chart for confirmation. The line chart allows you to see more clearly levels where price found support or resistance.
Disclaimer:
- There are no rights or wrongs in forex. What’s wrong for you might be right for me and likewise. Do what suits you best.
- You can’t remove subjectivity 100% from drawing S&R levels but you can keep it at a healthy level by adding some confirmations.
- keep in mind that trendlines as well as support and resistance levels can get broken. So do not be disappointed or surprised when you see that happen.
All the best.