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!
1 Like
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.
1 Like
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.