I have been working on my s/r-skills lately, unfortunatly without much success.
The problem with support and resistance in my opinion is that the levels are subjective. It seems to me that you almost always will find confirmation when you scroll back in the history to see if your lines have been any support/resistance in the past. Even if you place you lines randomly on the chart you will most likeley find some decent confirmation in the past, and with just some small adjustment even random support and resistance line will look good.
I think that even professionals use support and resistance in different ways, because when you compare for example the levels from “DailyFX” with the levels offered on “forex4noobs” they will be slightly different. And when you make your resistance-lines to zones they will soon cover most of your chart and be kind of useless, especially if you use pivot points and fibb-levels aswell because then you will find support everywhere.
I know that people says that only the major support levels should be plotted to avoid chaos, but it seems easier said then done.
What is your experience with support and resistance? I use them, but I start to doubt on the usefullness after realizing that you can plott them almost anywhere…
I would also like to have your opinion on whether you prefer drawing your s/r-levels at the tail or the body of the candlesticks? thats one of my biggest cunfusions I guess!!
It is indeed art and not science and the sooner traders realize that, they should see their results improve…or not (that really depends on the trader).
You’re quite clearly unconvinced of their merit & you make a very valid point about the randomness of these areas, so why waste any more of your valuable time debating the whys & wherefores?
You’ll only receive a hatful of conflicting views anyway from others who can’t make money using them. There are far less subjective options available out there to rock your boat than stressing over low probability stuff like support & resistance.
Various s/r have various strength. The more time the price bounced off the stronger. You can see that on bigger time frames. Whole numbers also work as a good s/r, keep an eye on them.
I use daily close/open to set S/R and its done automatically. On both side buy and sell stops, average win rate is 75%, Hotforex broker.
Simple as that.
How are you drawing your S/R? If you’re drawing too many, that will be why the lines seem irrelevant.
As mentioned, daily open & close are good to keep an eye on, you’ll usually see a stall or a bounce before it breaks.
[QUOTE=“JanusRichmond;736360”]I would also like to have your opinion on whether you prefer drawing your s/r-levels at the tail or the body of the candlesticks? thats one of my biggest cunfusions I guess!![/QUOTE]
This query is subjective & people will all do it differently. If there’s a lot of action to the left of the chart, I’ll look for what jumps out as reaction points for S/R & that line may cut through wicks at some points, touch the tips of a wick & even cut through the body of a candle. If price is trending up & there’s nothing to the left of the chart to gauge S/R (without zooming out), I’ll use the high/low of the candle.
If you were to draw S/R on a pin-bar, it would look completely different if drawn on to a two-bar reversal.
Level should jump off the chart at you, don’t over complicate it.
Support and resistnce level in my view this is only as trust theritiory which might each trader will have different view to determine area support and resistance, and for my selves usualy look support and resiatcne using timeframe and look on peak and bottom of price, which some trader called on roof and floor area, and use this level also depending with type trading like as we calping will use small timeframe.
Hey Guys anybody tried to trade on psychologically important levels (round numbers)? Statistics show that when price reach these level in 75% there is a short term bounce back (as traders put stops there, etc.)
What do you think about that?
