Thread: Drawing correct resistance and support-lines

Originally Posted by ;

Ok gimme a few mins

yeahaa! I cant wait for this particular sometimes im seeing it breaking up the resistance and now retesting it.

And when station is drawn, looks like it is bounce from the resistance.

I forgot that I am bearish on gbp/jpy. . Please take that analyze it was drawn from a guy who've been staring at the screen lol

Originally Posted by ;

I nearly forgot that I'm bearish on gbp/jpy. . Please take that analyze lightly, it was drawn out of a over-tired guy who've been staring at the screen too long now lol

as well as the UJ is above pivot (bull prejudice ). We gon na notice UJ goes up and taking GJ around if the support holds true. Am I correct abt this?

Originally Posted by ;

as well as the UJ is over pivot. If the support holds true, we gonna see UJ goes up and accepting GJ around. Am I right abt this?

Possible, but seems like we've got more fuzz regarding the The Northern Rock scandal coming up tomorrow, in that case, it will pull both usd/jpy down.

Originally Posted by ;

Possible, but sounds like we've got more fuzz about the The Northern Rock scandal coming up tomorrow, in that case, it will pull both usd/jpy down.

oh. . I nearly forgot... thanks for reminding me.

, can u update for GU? I had trendlines on my chart.

Which is the correct one? The dotted or the other?

Hi yuna,

great point. Trendlines are attracted in two ways, a few attach tl to candle bodies (open / close prices) and a few usage tails and heads (highs and lows) to get tls. The reason I use the latter manner, is that tls attracted in this way remain valid in any time (my definition: legitimate tl = not cut from any bar).

Moreover, if you wish to modify candles to barchart, no problems with tls.

R

Originally Posted by ;

hi Adeiaz1 and all fellow traders on the market!

I've a question in mind here regarding drawing trendlines. Most of the eduional resources on the internet suggest that trendline are attracted on the shadows instead of the near of price. 1 book that I've read Trading for a Living suggest that trendline ought to be drawn on the near of price. I'm not able to judge whether which is the manner of drawing on trendline as my trading experience is few. I hope u all can help resolve my confusion and answer my query.

1)That is the correct way of drawing on trendline and why?

...
Yuna

Sometimes trendlining on ranging market works just fine. It really depends upon price action. You want to discover the tf, which is even or 5M 1M in some cases. And in addition, you require a brokerimplementation and small disperse.

R

Originally Posted by ;

...

Your best, remain of outside ranging markets, occasionally I have experienced price simply to walk tru S/R with no reaction.

Noticed that you are utilizing channels also... Fibo stations are fine, esp on lengthier tfs, and you may easily modify them as you'd like.

Originally Posted by ;

When I don't have any obvious support as in this 4h downtrend instance, it works taking precisely the exact same angle as your supported resistance-line and just place it where you see price reverse. Of course, it will not be traded by you, but have a tendency to be legitimate when retested. Easiest method of doing this is: double your lineup (therefore it get marked with 3 dots) and press Ctrl bottom and drag it down to your own location. Angle achieved!

Instance of wrong and right drawn lines.

There is definite pattern in price action that repeats over and over again every time a tl is broken. The price begins to move to the opposite direction, and then makes one movement in the direction of the older trend.

This is an example of GU. To discover a good entry, add a short tl (the red one), and if this tl is broken, there's your entry.

R