Thread: Drawing correct resistance and support-lines

There is a great illustration of using trendlines in here, take a look!

Originally Posted by ;

Hi all, jus wanna discuss a opinion on GJ. Attached is a daily chart of GJ since nov.. First we have a triangle followed by a retest of the trendline from the triangle that support turned into resistance. Trend continuation. What happened next is that another triangle is formed and it is close to a breakout shortly. Will history repeat downwards of this triangle?or dividing maybe a beakout upwards? Btw I draw my triangle from line chart.

Aspire to hear ideas and comments from traders out there!

Yuna

Hi Yuna

Let's see how drawing out of line chart ends up. You get various lines than drawing out of candlestick.

As the charts looks at this time, and when that day is bullish also, I'm expecting a breakout out of 1h along with 4h chart. Let's hope those news do not mess too much up.

Originally Posted by ;

There is a good shift to short cable, it just crossed the encouraging tl... euro is moving into the south also...

a rest from 1h TL's would tell us what way cable decides to move. Price trapped between .9700 and .9615. Trend remains up.

Also look at this interesting setup forming on eurusd. Whether this support-line on 1h is broken, we can have a drop inside this pair, IMO.

GJ:

Price have entered outside resistance on 4h, but I'm not calling this a rest until line is analyzed again and turned into service. Notice that this new pub that is 4h got published. 1 possible scenario (I would love to see) is price falling down to check support-line on 1h chart, which might happen if currently resistance (213) holds.

Alot of traders discuss heavy resistance around 213, makes me believe when 213 fails to hold, this pair gonna explode to the upside.

really strong up trend on G/U.

Divergence on hourly CCI. Perhaps some movement comming.

Originally Posted by ;

GJ:

Price have entered out resistance on 4h, however I'm not calling this a break until line is analyzed and turned into support. Also note that this new 4h pub just got published. 1 possible situation (I would love to view ) is price falling down to check support-line on 1h chart, which might occur if currently resistance (213) holds.

Alot of traders discuss heavy resistance around 213, makes me think if 213 fails to hold, this pair awaiting na explode to the upside.

I truly agree with the point tt 213 is really key psy lvl. It is undergoing tremendous testing. Expect a rocket from this crazy horse In case it fails to hold like u say!

Anywae I have a query tt's thinking in my mind and expect un fellow traders out there can enlighten me. My question is why price nearly always retest after a breakout of tl, triangle, flags pennants etc etc.. . What's the plogy behind it? Anybody?

My inexperienced believing or likely newbish believing is tt: lets assume price are offenders and they try to break from prison. Eventually hero or 1 leader breached the gate. The thing is how can we noe he will breakout of this prison and not a false breakout. Some sites say whether the breakout is at least 30% of their price or one third of their price in the previous triangle(prison) it broke, it will be a valid breakout. To continue the story let's assume that this hero brokeout of this prison gate and proceed 3km past the gate.assume the prison is 10km lol. This has convinced the other prisoners(followers) that it is indeed feasible to breakout of prison, hence bringing more buyers/sellers to thrust the motion of price. But how come there's many times each retest of this triangle/previous support or res etc? Perhaps offenders make use of living in prison/experiencing distress beyond the prison and wants to return the prison? LOL. After u get from it, they will say no to the offenders, den if the previous support/res holds, who will be the prison guard, I wont let u from the prison. Wahaha, I'm laughing as I type

Originally Posted by ;

I actually agree with the purpose tt 213 is actually crucial psy lvl. It's undergoing testing. Anticipate a rocket if it fails to hold like u say!

Anywae I have a question tt's thinking in my mind and hope u fellow traders out there can enlighten me. My question is why price nearly always retest following a breakout of tl, triangle, flags pennants etc etc.. . What is the plogy supporting it? Anyone?

They're testing to see whether it is a real brake out (it must pass the exam ) or a fictitious one. If it passes the test (holds the former line) then an increasing number of sellers/buyers will combine and commence the new trend.

It's that easy No prison break for the time being, sorry

I had an excellent trade on the NZD/USD pair to get a medium-term interval and 80pips simple money
I wrote concerning this transaction last week and today it's closed have a look at the attached chart. Hmmm did I mention that I like the flavor of this delicious kiwi? B)

Originally Posted by ;

I had an excellent trade on the NZD/USD pair for a medium-term period and 80pips simple money
I wrote about this trade last week and it's closed have a look at the attached chart. Hmmm did I mention that I enjoy the flavor of this kiwi? B)

Nice trade! Easy pips indeed. I've got 2 charts which may reveal some interest.

The two usdcad and gbpjpy runs right into a strong support and resistance, take a look. Lets see if we could get a reaction when price strikes these lines.