[Help]Define Horizontal Sup/Res

[ricx]

I need FOREX day trader volunteer 🙂

I expect people who trade for living voluntarily to define horizontal support/resistance 🙂

define means...
1. explaining why you choose the time frame for that horizontal sup/res.
2. explaining theory behind that levels.
3. importance of those levels and which one is significantly monitored.
4. or... anything you like 😉 maybe it needs unique way to define just tell me about it.

I need you all for this, cos i need to be back to basic.
I hope there are nice traders cares 🙂

Books can gives theory, Live traders can share lifetime experience.

Thanks all.

 

[jiggly]

your question has been answered a million times already, you will find the answers if you use google, or the search function for the forum.

 

[ricx]

Thank you for replying Mr Jiggly 😉
that's exactly what I've been doing these weeks, i came out with 4 conclusion of different styles.
But none of them answer my question, the question remain "which one is definite practiced by active traders" not only preached by book author or forex gurus or streaming videos.

so... if i do the search in net, why i post this to forum? simple to speed up things, nothing compared to live experience of traders who make a living by trading.

 

[shadowninja]

Where's spanish89's trendline graph when you need it?

If you draw S and R lines, keep them nice and fat. Trading is not an exact science.

 

[timsk]

Hi ricx,
Welcome to T2W.
I don't trade FX so, according to your stringent requirements, my comments won't help you or warrant your respect. That's fine by me! Nonetheless, IMO you are asking the right question to the wrong people. YOU should be answering your own question based on your own research and evaluation. Even if I was an FX god that made squillions each day, it shouldn't affect where you place your S 'n' R lines. Besides which, some things are cast in stone and don't change much because they are fundamental to the way the market functions, i.e. the theory.
1. Time Frame
This is own to the individual trader. S 'n' R levels used by a day trader scalping a 1 minute chart are unlikely to be of much use or interest to a swing trader holding positions for days at a time. The exception to this might be where there's a confluence of S 'n' R across a number of timeframes.
2. The Theory
Support levels are points where selling pressure dries up and demand outstrips supply. Price finds support at the point where there are no more sellers prepared to sell at a lower price. Buyers are then sucked into the market as price starts to rise. Resistance levels are points where buying pressure dries up and supply outstrips demand. Price finds resistance at the point where there are no more buyers prepared to buy at a higher price. sellers are then sucked into the market as price starts to fall.
3. Importance of levels
The important ones are the ones where institutional stops are in place and are likely to cause a reversal. If you can work that one out, then you can piggy back a ride with the big cats and your life will be easy as you're trading with the money flow rather than against it. Have I sussed out how to do that with a high probability of success? No, sadly not, but I'm working on it!
4. Anything else . . .
The basic part of your request I've answered, albeit superficially. As 'jiggly' advises, do a Google search as there's mountains of info' out there on this very subject. As for the Holy Grail part of your request - i.e. 3. above, don't expect anyone to give you this kind of info' for free. You'll either have to work it out for yourself or dig deep into your pockets and pay for it.
Good luck.
Tim.

 

[MrGecko]

When price is making it's way into uncharted territory, S+R are pretty easy to point out - it's just at the high's and the lows. When you've got price trading in a range, in between major highs and lows, I like too look for Support that, when broken, has acted as Resistance, and vice versa. These are the levels I like to pay attention to, where Support becomes Resistance.

Good tip, that, I reckon.

I also echo ShadowNinja's point about not expecting the levels to be adhered to by the pip.

You should be able to see what I mean from the posts in the Just Charts No Chat thread here. Shameless plug.

http://www.trade2win.com/boards/just-charts-no-chat/41914-just-charts-no-chat.html (twice)

 

[ricx]

Thank you guys for your posts i really do appreciate them, I'm in no holy grail searching just simply relearns this before i move on to next level, i just need to be sure of what I've been reading is exactly implemented by traders who trade for a living.

@timsk yes surely does... many good informations aren't free, many are expensive. but the net is very kind to me 😉 and there are many caring ppl on the net too who cares for small bucks ppl like me.

 

[jiggly]

post a chart with what you understand to be support and resistance levels.
it does not matter which chart, just have a go.

we will then comment on it and give our opinions also.

remember there are no hard and fast rules, one traders interpretation of the market will vary from anothers..