Originally Posted by traktor

Yes, I know about the importance of breakouts. I tried to use supports and resistances, but I used the levels published by Dow Jones Newswires.
Here is an example from Monday, August, 28, 2007:

ForexSpot EURUSD USDJPY GBPUSD USDCHF
……………….R3 1.3757 117.47 2.0304 1.2090
……………….R2 1.3727 117.15 2.0275 1.2073
……………….R1 1.3710 116.76 2.0241 1.2040
……………….PP 1.3674 116.37 2.0167 1.2040
……………….S1 1.3605 116.10 2.0140 1.1995
……………….S2 1.3575 115.50 2.0076 1.1975
……………….S3 1.3556 115.25 2.0061 1.1969

The question is – how to find true supports and resistances myself during the trading? I think the ability to find important technical levels provides great help in trading.

Originally Posted by Nicholas 2001

Hello. Let me join to your discussion. I’ve got a program which draws the support/resistance levels automatically. Look at the illustration below – the green lines are supports, the orange is Pivot and there are also resistances above (not shown on the illustration).

Originally Posted by traktor

Great! A useful program, I think. Would you provide a link to download it, please?

Originally Posted by Nicholas 2001

Of course, I’ll give you a link. But notice that I don’t use it myself while I used it when only started to trade. A time later the support/resistance levels will be obvious for you, you will just “feel” the market.

Originally Posted by traktor

Hello, friends.
Could anyone help me, please, with support and resistance levels?

First, I’ll shortly tell my story.
A year ago, in September, 2006, I’ve met my friend which I haven’t seen for 5 years after finishing school. We’ve met in a cafe. He arrived on a luxury Porsche Cayenne and told me his story of reaching material well-being. I knew that he is a trader on financial markets, including Forex. Of course I was interested what does it mean “a trader” and he offered me to see his trading at home.

Next day I was in his trading room in a beautiful residence watching at his workplace and dreaming of myself sitting at the chair and earning money as he does. Four 21”-monitors, a fast internet connection and an uninterruptible power supply system – an impressive set of tools he has. He turned on the computer, launched his trading terminal and told me not to ask anything during the trading, just to watch, and that he will try to explain what he is doing. And easily earned 4000 dollars in less than 2 hours… After this demonstration he explained that trades on Forex for 7 years and gathers stable profit last 3 years. He gave me two books and said that he started his way on Forex from them. It were A. Elder’s “Trading for a Living” and J. Murphy’s “Technical Analysis of the Financial Markets”. After listening to his recommendations I went home and started to trade at the demo account and read his books. I like the books; they are interesting and easy to understand. In a month, my demo account has grown twice and I consider myself to be ready for real account.

I’ve opened an account with 10000 dollars and started to trade very carefully. I was receiving some profit and at the end of the month of such careful trading I had 5000 dollars more. After withdrawing of half of that profit, I decided to use more aggressive tactics to increase profit. But the result was disappointing – in the next month I’ve lost 60% of my deposit. Now I had only 7500 dollars. It provoked me to fear of trading. I had to restore my deposit and tried to do it but… 2 weeks later my depo was gone.

I started to read the books again trying to find out what have I done wrong. Now I see that there is some inconsistency between two authors, sometimes they recommend to do absolutely different things in the same situation.

And now I ask a question to you, dear traders.
How to identify the support and resistance levels? Or it is impossible?

Someone says that it’s better to count waves; others trade from one support/resistance level to another – what is the best?

Thanks a lot.

Originally Posted by traktor

Hello, friends.
Could anyone help me, please, with support and resistance levels?

First, I’ll shortly tell my story.
A year ago, in September, 2006, I’ve met my friend which I haven’t seen for 5 years after finishing school. We’ve met in a cafe. He arrived on a luxury Porsche Cayenne and told me his story of reaching material well-being. I knew that he is a trader on financial markets, including Forex. Of course I was interested what does it mean “a trader” and he offered me to see his trading at home.

Next day I was in his trading room in a beautiful residence watching at his workplace and dreaming of myself sitting at the chair and earning money as he does. Four 21”-monitors, a fast internet connection and an uninterruptible power supply system – an impressive set of tools he has. He turned on the computer, launched his trading terminal and told me not to ask anything during the trading, just to watch, and that he will try to explain what he is doing. And easily earned 4000 dollars in less than 2 hours… After this demonstration he explained that trades on Forex for 7 years and gathers stable profit last 3 years. He gave me two books and said that he started his way on Forex from them. It were A. Elder’s “Trading for a Living” and J. Murphy’s “Technical Analysis of the Financial Markets”. After listening to his recommendations I went home and started to trade at the demo account and read his books. I like the books; they are interesting and easy to understand. In a month, my demo account has grown twice and I consider myself to be ready for real account.

I’ve opened an account with 10000 dollars and started to trade very carefully. I was receiving some profit and at the end of the month of such careful trading I had 5000 dollars more. After withdrawing of half of that profit, I decided to use more aggressive tactics to increase profit. But the result was disappointing – in the next month I’ve lost 60% of my deposit. Now I had only 7500 dollars. It provoked me to fear of trading. I had to restore my deposit and tried to do it but… 2 weeks later my depo was gone.

I started to read the books again trying to find out what have I done wrong. Now I see that there is some inconsistency between two authors, sometimes they recommend to do absolutely different things in the same situation.

And now I ask a question to you, dear traders.
How to identify the support and resistance levels? Or it is impossible?

Someone says that it’s better to count waves; others trade from one support/resistance level to another – what is the best?

Thanks a lot.

Originally Posted by Bongo

Hi all,
ND, do we have EA based on Support and Resistance?
Thanks
B.