Hello all -

I would like to know what you would consider major support and resistance.

1. Would it be where a pair has hit the same price more than twice within a 24 to 48 hour period ? or does it have to be over a longer period of time?


2. Would it be where a pair hits the same price more than twice on one time frame? eg. 15 min. chart it hits the price two or more times.

3. Would it be where it the same price more than twice on multiple time frames? eg. 5 min, 15, min, 1 hr and 4 hr charts.

4. Would MAJOR support and resistance have to hit the same price more than 2 X's, 3 X's, 5 X's, 7 X's etc. etc. over what period of time?

Now that you have answered what Major support and resistance is can you explain what MINOR support and resistance is.

Knowing Minor and Major Support and Resistances would you still trade in the current direction if you were coming up to a minor support or resistance ?

Obviously we wouldn't want to enter a trade if we knew we were coming up to a Major Support or Resistance right? or would we?

Just wanted to know everyone elses thoughts on this subject.

BTW this is how I look at Support and Resistance.

Major Support would be if a pair hits a certain price more than 3 times on all of the time frames, not just one time frame but multiple timeframes. Over a period of time I usally go as for bak as 5 - 6 years.

Minor Support and Resistance would be within the last 24 - 48 hours on a single time frame like a 15 min, 30 min, 1 hr. timeframe.

Let me know if you think I am wrong. I am willing to learn and definately open to any suggesstions.

Thanks for helping out

Wishfulpiping

Major support is often a combination. A level retested twice or three times could be, plus a psychological level, plus all times high or low and so on, plus fibos or sum of fibos.
Sometimes is all about, sometimes only have two or three conditions. Sometimes it's because large orders are just set close to that levels.

There is no magic recipe to detect majors. We could guess by adding elements to make a level strong to break.

Minors are weak levels, generally simple fibos, pivots, prev highs/lows and so on.

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if i was short at 0.9330
the first resistance is 0.9317
its better to take profit some pips before the resistance or
i must to wait the resistance breack ?
and about the pivot 0.9270 its a support or a resistance
Thanks a lot

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Below the price is support, above price is resistance.

If the trend is strong as in your picture it's better to wait the breakout of support. Once the support is broken you could move your stop just few pips away from that level.

Remember once a support/resistance level is broken, usually the price goes back and retest the level before to continue with established trend.

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Hi,
Does anyone have an indicator that draws support/resistance lines, not the barry ones. For instance the indicator would be able to identify the following support lines in the chart. thank you.

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For all the indicators I have, I would have to say no.

Dave

Try this thread Level Trading

I have this old.

I don't remember where the original post is. So reposting.

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Attached Files

Support_Resistance.mq4 (8.6 KB, 73 views)

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I have a nice system setup for my trading (read my journal link), earning decent pips over time, but the system isn't gd enough to detect USD fake break out in last monday (19 May 08)....

Please refer to the circled candlestick..

69j9dw.jpg

Any indicators can help me detect that it is fake breakout and prevent from opening a long postion??



thx

sonic

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My FOREX Journal

sonicdeejay;

Some suggestions;

I use the USD/JPY as an Indicator for the GBP/JPY carry trade. On MT4,
I shift between 5 minutes and 1 hour charts. On a 5 minute chart, you should see a Yellow Reversal histogram stick. I use Lyn V-3.

If a 3 hour chart is good for you, I see you have no UPPER Tend line. This should indicate a break out or reversal.

Any MOMENTUM indicator should reveal price direction through strength or weakness. Don't read the lines or histogram, read the Math for strength or weakness.

Also, instead of Candlesticks, you may want to use Doji's, if you can read them better. (Inside Doji)

Maybe somebody can I.D. your broker chart and have an additional suggestion.

Hope this helps.

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