Thread: Drawing correct resistance and support-lines

my take

1 Attachment(S ) ) Alright! I love this thread! Keep it all coming.



Yuna

Originally Posted by ;

People have various drawing-ways, for me, I like to include shadows also, mainly because it includes more of the swings on the market. If you are not certain, try and see if lines drawn from shadows/no shadow can match with around numbers also. Practice pays off

Thanks I completely concur with you practice is essential, in my situation both functions for me, usually I follow a single general guideline that is it needs to be clear and plausible, should I find myself attempting to”warrant” those lines drawn afterward I will not take it.

Cheers

mARK

Originally Posted by ;

Thanks I totally concur with you practice is essential, in my situation both functions for me, typically I follow one general guideline that is it has to be obvious and plausible, should I find myself trying to”warrant” those lines attracted then I won't take it.

Cheers

mARK

Well Stated. It's really that easy. For me personally, I try apply those rules as mentioned in the beginning of this thread, however I really don't hesitate drawing lines if they seems obvious. When you have those lines, you will/have been amazed how accurate they may be.

Originally Posted by ;

Well said. It's really that easy. For me personally, I attempt use those rules as stated in the start of this thread, if they sounds quite obvious but I don't hesitate drawing lines. When you have those lines, then you will/have been amazed how accurate they can be.

Hello aediaz,
Could you help me on the right time of inputting a trade.It always go the other way once I enter a trade.I was told that when the candle breakout out of the treandline await the candle to close.It needs to be out of the line and you will just enter trade on next candle 5 pips from previous close candle.is this true or is there a better way to enter? And which is the best TF to apply for the treandline method.Thanks bro.

6 Structure (s)

Originally Posted by ;

Hello aediaz,
Could you assist me to the ideal time of entering a trade.It go another way once I enter a trade.I was advised that when the candle breakout out of the treandline wait for the candle into close.It needs to be out of this line and you will only enter trade on next candle 5 pips off from previous close candle.is this true or is there a better way to enter? And that is the best TF to apply for the treandline method.Thanks bro.

Hello karimr. Nr 1 rule which may assist you in the start would be after the primary (or intra-day) trend. A good example is provided by eur/usd.

Take a look at the picture. I've painted all of the candles you'd have probably lost your transactions on (blue) in case you entered brief based on 4h. If we followed this trend, agree, now, eurusd can give us many good trades?

I know this don't have a thing to do about trendlines, but it really explain the whole idea trading with this trend. It is almost difficult to make transactions that are bad when you follow these a strong trend.

At the start of your trading-career, I find this as a good egy for decreasing your losses. You can proceed to trading from the trend as you get more experience and confidence.

Okay, trading of trend-lines. Take 1 pair to get a start. Apply 30m,1h,4h,daily and weekly. If you like, add monthly to weekly chart and daily pivots to 30m (I only look at the way in which the price reacts to pivot point on 30m).Weekly, try look how price reacts to all its levels.

Try to apply trendlines on all the currently timeframes you have. I've given you usdjpy for instance . What exactly does this charts tell you? Looks like it is starting to retrace about the timeframes that are reduced and if you see on daily and monthly charts, you notice that price is finding it difficult to penetrate those support-lines.

How do you exchange it then? You've got rule nr 1, trading together with all the (intra-day/long-term) trend. As you see 30m, 1h and 4h we are producing higher lows, so if you're a trader you'd be looking to entrance when price falling down along with analyzing. If you exchange long term, you'd be searching for short positions (daily and weekly) and you'd find entry's at resistance-line on daily/weekly.

About breakouts, I'll reveal a picture on next article.

Breakouts. Gont reveal you aususd, 4h and 1h chart. Apply fibonacci from last bull/bear run. Should you see on 1h chart, price have broken online and retested it. Also find that fib is correlating with (currently ) resistance-line.

When trading breakouts, I only take a trade when price is return to test it, and maintain.

Proceed to 4h chart to confirm this could be a fantastic trade. Always correlate with timeframes! Should you see on weekly, detect alot of selling in currently level according to candlestick (long shadows).



This charts have (ideally ) eduional purpose, don't take it as trade calls.

Hi,

I am not sure whether that is relevant, however I put a lot of emphasis on typical trading ranges, daily or weekly. Breakouts of patterns like trendlines, wedges or triangles are meaningful at particular levels.

Eg, on an intraday interval and assuming you begin at NY session

we must find out what range the specific pair had achieved during the tokyo session as well as the london session. Assuming pair X averages 100 pips every day and it's met this range throughout the first half of the london session, then a breakout of a channel on the upside such as wouldn't yield very good odds if this breakout occurs at the upper extreme of the previously establish range. If the situation is such that pair X only managed 50 pips prior to NY begin, then the breakout will be meaningful.

Listing all possible scenarios are too long to sort, hope you get the idea. Of course always trade from the direction of the trend.

mARK

Originally Posted by ;

Hi,

I am not positive whether that is relevant, however I place a lot of emphasis on typical trading ranges, daily or weekly. Breakouts of patterns like wedges trendlines or triangles are more meaningful at certain levels.

Eg, on an intraday timeframe and assuming you start at NY session

we must see what range the specific pair had attained during the tokyo session in addition to this london session. Assuming pair X averages 100 pips a day and it has met this range throughout the first half of this london session, then a breakout of a channel on the upside for example wouldn't yield very good odds if this breakout happens at the upper extreme of these formerly establish range. If the situation is such that pair X just managed 50 pips prior to NY start the breakout would be purposeful.

Listing all probable situations are too long to type, hope you get the idea. Of course constantly trade in the direction of this intermediate or main trend.

MARK

I know exactly what you say, I've tried myself to employ some sort of egy when it comes to trading range, but haven't been able to create any fantastic conclusion so far. So if you can provide us with some examples in which you reap the benefits from trading range I'd be more than happy

I'll try myself on gbpyjpy. In accordance with this previous 6 days of movement (total pips / 6 days), potential goals are 202.70 and 207.22.

Hey,

very straightforward and interesting thread. I will attempt to participate here too.

Perhaps someone would like to share Cable and EU chart?