Thread: Drawing correct resistance and support-lines

Do not trade gu much, so that was just an example. Long on geppy, small though, watching for second entry that is good.

Originally Posted by ;

Nice fibo channels, haven't used them but guess it could be worth a shot . Entrance on gbp/usd you are still in?

Originally Posted by ;

Do not trade gu that far, so that was just an example. Long on geppy watching for entry that is good.

Same Rocroy, went long from lnd pivot level, price is struggling with 1h, but based on PA we would have a break quite soon.

Usd/jpy didn't turn out too bad, did you have some position on it Mark?

Will start searching for buys on eur/usd when yesterdays high is taken out. Price just refuses to return, so we're at a strong uptrend IMO.

Also, to encourage the euro (and gbp), many large stocks are up 1% - 2% approximately Europe, COULD be a bullish day.

Possible second goal. Still riding with us? This is where you can utilize stochs to observe when price will get OB in TF's. It's not even OB @ 15m chart so this have great potential.

Originally Posted by ;

Usd/jpy did not turn out too bad, did you have any place on it Mark?

Nope I was just curious, I did short the USD/CHF although the thought behind it was that it is a win-win situation: if I lose money that is the fee I have to pay for my own shallow analysis and t remember not to do it again and when I could have any pips than it is simply magnificent. And I had 15pips (down to 50% then I quit) so thanks to your help mate!

Along with your geppy analysis (potential upside B.O. based on PA) was really professional. I truly hope you jumped the bandwagon in time it is a lot of money today! 122pips because the breakout

Hi Adeiaz1 and all traders out there!

I've a question in your mind here regarding drawing trendlines. Most of the eduional sources on the web imply that trendline are drawn on the shadows instead of the near of price. However 1 book I've read Trading for a Living imply that trendline ought to be drawn to the near of price. As my trading expertise is few, I am not able to judge if which is the proper way of drawing on trendline. I hope u all can help solve my grief and answer my question.

1)That is the right method of drawing trendline and why?

2)Another question I have is what gd source are there in the internet which explain the theory behind SR traces and trendlines? Exactly like Adeiaz1 stated that an uptrend informs tt demand is higher than supply and the SR lines(demand lines) etc. many of those websites teaches hot to spot and also draw but didn't have gd explanation behind. I believe that understanding why is as important as learning how to draw properly.

Thanks Beforehand and gd trading to each of

Yuna

Originally Posted by ;

hi Adeiaz1 and all traders around!

I have a question in your mind here concerning drawing trendlines. Most of the resources on the web imply that trendline are drawn on the shadows instead of the close of price. One book I've read Trading for a Living imply that trendline should be drawn on the close of price. I am not able to judge if which is the manner of drawing trendline as my trading expertise is few. I hope u all can help answer my query and solve my confusion.

1)Which is the right way of drawing trendline and why?

2)Another question I have is that which gd source are there from the net that explain the theory behind SR lines and trendlines? Exactly like Adeiaz1 said an uptrend informs tt demand is greater than supply and the SR lines(demand lines) etc. the majority of the sites teaches hot to spot and also draw but didn't have gd explanation behind. I think that knowing the reason is as important as learning how to draw.

Thanks in advance along with gd trading to each of

Yuna

1. The way is just 1 way. Does it work?
Mainly because you have other traders drawing the exact same way. And I really don't mean just people who have 10k account. This drawing-method pull between where supply/demand changes lines. This is where supply/demand changes strength the location where you want your lines to be. So, traders will look to sell/buy and put stop/loss around this levels, that is the reason you will see rapid (big ) movements when price hit those levels again.

It is not hard. When drawing S/R lines to some degrees with success but utilizing a rule in your drawing will help it become stronger and clearer, improving in which you put orders and stop/loss.

This is also a way preventing you from filling up your charts with 100's of different lines. Attempt update your lines when you view new candlestick types from the way that is mentioned, but also help keep your old ones to a level to find out whether they are valid. Only practice will provide encounter to you. Studding price action around your S/R lines is a wonderful way of getting knowledge of price behaves here.

2. Attempt conduct a google on it (much of help eh?) Or conduct some drawing on your own chart to learn price reacts in your lines. It is rather easy after a couple of attempts.

This kind of drawing have supplied with powerful S/R lines so I am certain you can add this to your arsenal of tools with confidence.

When I don't have some obvious aid as in this 4h downtrend example, it functions taking precisely the same angle as your supported resistance-line and just place it where you see price reverse. Of course, when retested you won't trade it, but tend to be legitimate. Easiest way of doing so is: double-click your line (so that it get marked with 3 dots) and press Ctrl underside and drag it to a spot. Same angle attained!

Instance of wrong and right drawn lines.

Originally Posted by ;

1. The way you see lines have been drawn in this thread is just 1 way. Why does this work?
Mostly because you have other traders drawing the same way. And I don't mean people who have 10k account. This drawing-method pull between where supply/demand changes lines. This is where supply/demand alters strength, the location where you want your lines to be. Therefore, traders will appear to sell/buy and put stop/loss around this levels, that is the reason you will see rapid (big ) moves when price hit those levels again.

It is not hard. When drawing S/R lines you could almost draw on them from everywhere to a few levels with success but utilizing a rule on your drawing will help it become clearer and stronger, improving where you place orders and stop/loss.

This can be a way preventing you from filling up your charts with 100's of unique lines. Try upgrade your lines when you view new candlestick types in the way that is mentioned, but also keep your old ones to a degree to see whether they are valid. Practice will provide you encounter. Studding price action around your S/R lines is a way of getting awareness of how price behaves .

Sry, jus discovered I spelled that your nick wrongly, lol.

So as u say it functions be coz it's jus lik an self fufilling phrophecy?
Well u hit it right when u said to stop having 100s of line in my chart.
Anyhow I will be aware of your point and attempt to apply it.
Meanwhile I will like to share my view on GJ, but I will like to admit tt I do not have 1 year of exp in trading that you mentioned in ur 1st post. Jus a thought translating them and I lik and at precisely the same time practice my drawing of tl/sr lines. Hope anyone can correct me if I'm erroneous

this is an hrly chart, it's showing powerful res at upper trendline and yet also showing strong support. It's best to remain at sidelines. Wonder is there a big move to ch whether it breaks the triangle...