Thread: Drawing correct resistance and support-lines

Originally Posted by ;

Great thread I have a question though. That wedge has been already broken. What is your opinion? Since the wedge is broken to the upside down, but for example candlestick patterns suggest a retracement. Doji, shooting star, etc.. On a H4 time those are trusted by me.

Good question, talking of retracement I have put up a fibo on the 1h chart, and cable have done the famous 50% retracment so technically speaking we are looking bullish for now. Drawn a new wedge on 1h, not 101% perfect as you watch in the blue ring. But lets see how price reacts to this.

Possible retest of 4h currently support-line (approx 1.9600) before upward action. IMO

I thought I would contribute to some excellent thread with such an case.

Originally Posted by ;

I thought I'd contribute to some excellent thread with this case.

Keep em coming !

So far so good on the cable

Woke up too late to the eur/usd.

Usd/chf. Had a bounce of this service.

Possible situation, but anything could happen today.

I find that resistant and Support line is indeed important but essential. Not Connection 2 lines.

If you would like to trade counter tendency, service line is very important.
A break against service will usually yield a lengthy bar. It's a affirmation. Ever wonder why sometimes your triangle split did not turn out as you desired. Is there a string break out?

A service lines must be drawn with hefty whipsawing. . It will reveal it is trying to split it.

It also allow you to draw your target. I learnt this on Naked trading.com donkeys years ago. kudos to them.

Originally Posted by ;

I discover that Support and resistant line is indeed important but essential. Not just Connection 2 lines.

If you would like to trade counter trend, service line is very important.
A break against service will normally yield a lengthy bar. It's a good affirmation THis is quite important. Ever wonder why your triangle split didn't turn out as you wanted. Can there be a series break out?

A service lines must be drawn with hefty whipsawing. . Then it will reveal it is trying to split it.

It also enable you to draw your goal. I learnt that on Naked trading.com donkeys years back. kudos to them.

The reason you get large bars around this areas, is because you've got alot of orders pending both the ways. You know that you had a line.

Not automatically whipsawing, but instead a good candle-stick pattern (two red bars, a hammer then to green bars) will create a good point for S/R drawing.

Look at usd/chf. Faced selloff.