Support and Resistance Levels

[robocod]

Hi,

This is my first real post. I'm a new trader so forgive me.

I am learning to spot support / resistance levels from charts (FTSE 100 mainly).

Are there any formal methodologies for this type of thing?
Any websites post this type of thing? (Is anything posted on this website?)
Or is this information closely guarded secret that people keep to themselves?

Another question about support/resistance levels: How long do they last for? For example, suppose 2 weeks ago there was good support at X points which wasn't broken, market moved higher and now comes lower again, can this support at X still be valid? What if the time was 2 months? 6 months? etc. I would suspect that the support "degrades" over time, is it the case?

Thanks in advance.

 

[brettus]

Hi,

This is my first real post. I'm a new trader so forgive me.

I am learning to spot support / resistance levels from charts (FTSE 100 mainly).

Are there any formal methodologies for this type of thing?
Any websites post this type of thing? (Is anything posted on this website?)
Or is this information closely guarded secret that people keep to themselves?

Another question about support/resistance levels: How long do they last for? For example, suppose 2 weeks ago there was good support at X points which wasn't broken, market moved higher and now comes lower again, can this support at X still be valid? What if the time was 2 months? 6 months? etc. I would suspect that the support "degrades" over time, is it the case?

Thanks in advance.

There's no real science to it. You just need to watch the markets a lot. You can't learn it without watching the market for years.

 

[bbmac]

Hi,

This is my first real post. I'm a new trader so forgive me.

I am learning to spot support / resistance levels from charts (FTSE 100 mainly).

Are there any formal methodologies for this type of thing?
Any websites post this type of thing? (Is anything posted on this website?)
Or is this information closely guarded secret that people keep to themselves?

Another question about support/resistance levels: How long do they last for? For example, suppose 2 weeks ago there was good support at X points which wasn't broken, market moved higher and now comes lower again, can this support at X still be valid? What if the time was 2 months? 6 months? etc. I would suspect that the support "degrades" over time, is it the case?

Thanks in advance.

I have a methodology that is contained in the document attached to post #97 of this thread. You may find it useful. As for how long the potential support/resistance lasts...well if for example you are plotting price pivots on a 1hr chart, I would suggest when the last price pivot that gives you the potential support/resistance zone goes off the left hand edge of your chart as price discovery moves forward and to the right, then unless that price pivot exists as such on a higher t/f, you should remove it.

G/L

 

[Black Swan]

Hi,

This is my first real post. I'm a new trader so forgive me.

I am learning to spot support / resistance levels from charts (FTSE 100 mainly).

Are there any formal methodologies for this type of thing?
Any websites post this type of thing? (Is anything posted on this website?)
Or is this information closely guarded secret that people keep to themselves?

Another question about support/resistance levels: How long do they last for? For example, suppose 2 weeks ago there was good support at X points which wasn't broken, market moved higher and now comes lower again, can this support at X still be valid? What if the time was 2 months? 6 months? etc. I would suspect that the support "degrades" over time, is it the case?

Thanks in advance.

Dead easy for you to plot/play around with S&R + the pivot; sign up to IG, get their free (if you place 2 trades a month) pro real time package. Choose advanced charts and select the option in the indicators for S&R + daily P, it'll plot it for you for the day although you can select weekly etc if you want and optimise the paramaters.

If you're planning to play indices off it I'm not sure how it'll *work*, but heh that's just imho. Once you've got the charts up record what price does when it approaches the levels. Take it from there..

 

[TheBramble]

There's no real science to it. You just need to watch the markets a lot. You can't learn it without watching the market for years.

LOL

It's even funnier when it's meant seriously.

 

[Pazienza]

Dead easy for you to plot/play around with S&R + the pivot; sign up to IG, get their free (if you place 2 trades a month) pro real time package. Choose advanced charts and select the option in the indicators for S&R + daily P, it'll plot it for you for the day although you can select weekly etc if you want and optimise the paramaters.

If you're planning to play indices off it I'm not sure how it'll *work*, but heh that's just imho. Once you've got the charts up record what price does when it approaches the levels. Take it from there..

You use s&r now do you Walter? What's a "pivot" - didn't you know all us traders calls them "pivs"? And what happened to your secret indicator combo strat bud?

kin ell bless...

 

[Pazienza]

Another question about support/resistance levels: How long do they last for? For example, suppose 2 weeks ago there was good support at X points which wasn't broken, market moved higher and now comes lower again, can this support at X still be valid? What if the time was 2 months? 6 months? etc. I would suspect that the support "degrades" over time, is it the case?

Thanks in advance.

First, it's great that you're thinking about this.

Second, you're asking the wrong thing here. Do you think that there is a rule for how long support or resistance lasts? Presumably not. Some are broken straight away. Some levels in forex go back decades.

How do we know if they're going to hold? In other words, can we predict the future? Again, presumably you don't think that this is possible.

The answer is to use S/R levels as a tool - a vital tool, but just one tool nonetheless. Now you need a means of confirming whether they have held - not will hold, but have held.

Next on your list should be price action. This, combined with a good area like a strong S/R level, is all the technical know-how you need.

But if you are new and S/R is your main concern, you are to be heartily commended. Many traders spend years chasing stupid combinations of indicators before they realise what is really important. Like poor old Black Marigolds - not long ago he was deriding the concept and boasting about his multiple indicator "strat" for "playing the smalls" or whatever rubbish it was.

But you seem different - you seem to have your head screwed on. You don't seem like a complete plonker like Walter Paul Mitty.

 

[brettus]

You use s&r now do you Walter? What's a "pivot" - didn't you know all us traders calls them "pivs"? And what happened to your secret indicator combo strat bud?

kin ell bless...

Your inbox must be full of trade2win replies. You must be the most knowledgeable person around. I say you setup a thread and everyone can ask you a question there, saves you the time of going to others, plus your response time is second to none.

 

[Pazienza]

Your inbox must be full of trade2win replies. You must be the most knowledgeable person around. I say you setup a thread and everyone can ask you a question there, saves you the time of going to others, plus your response time is second to none.

Excellent post - true, and to the point (sorry for the slight delay, I was replying to urgent query on another thread. PM me if you need more assistance).

 

[brettus]

Excellent post - true, and to the point (sorry for the slight delay, I was replying to urgent query on another thread. PM me if you need more assistance).

Actually i think everyone are absolute c**ts for starting new threads and making you reply elsewhere. Maybe you should stop holding back with your replies and type with hands instead of your feet. I heard Chuck Norris wears Pazienza pjamas.

 

[Pazienza]

Hi,

This is my first real post. I'm a new trader so forgive me.

I am learning to spot support / resistance levels from charts (FTSE 100 mainly).

Are there any formal methodologies for this type of thing?
Any websites post this type of thing? (Is anything posted on this website?)
Or is this information closely guarded secret that people keep to themselves?

Another question about support/resistance levels: How long do they last for? For example, suppose 2 weeks ago there was good support at X points which wasn't broken, market moved higher and now comes lower again, can this support at X still be valid? What if the time was 2 months? 6 months? etc. I would suspect that the support "degrades" over time, is it the case?

Thanks in advance.

Look especially for areas where S/R flip - where old support becomes new resistance, and vice versa. These tend to be obvious and can be exceptionally good areas to trade. Try to think why this might be so, and you're a long way down the road to making a go of trading.

 

[Pazienza]

Actually i think everyone are absolute c**ts for starting new threads and making you reply elsewhere.

If only everyone had your admirable good sense! I feel the strain, but I consider my posting more a public duty than a burden, and I struggle on.

Maybe you should stop holding back with your replies and type with hands instead of your feet. I heard Chuck Norris wears Pazienza pjamas.

This is partially true. He does indeed own several such pairs, but he reserves them for special occasions and for when he is entertaining a lady-friend.

 

[Pazienza]

What!? What are you saying!? Listen mate, turn your f*ckin Dyson off, i can't hear what you're on about!?

F*ckin cleaners.

 

[coopster]

I say you setup a thread and everyone can ask you a question there, saves you the time of going to others, plus your response time is second to none.

Um, i think he already has!

Maybe you should stop holding back with your replies and type with hands instead of your feet. I heard Chuck Norris wears Pazienza pjamas.

That's the manufacturing problem with the pyjamas, they forgot to make holes for the arms!

 

[Black Swan]

Um, i think he already has!



That's the manufacturing problem with the pyjamas, they forgot to make holes for the arms!

Like this? Ooh, suits you Spazziana..

 

[Pazienza]

Like this? Ooh, suits you Spazziana..

Hey BS, I'm pleased to see you're dressed up in your gimp suit, gagged like the gang of hairy, gay bikers you're entertaining later like it. You'll want to unzip the a$$-flap though, and get lubed up.



Are you still pretending you've got me on ignore, Walter Paul Mitty?

Bless...

 

[fihunts]

Fibonacci and of course Pivots. You really don't even need those, a lot of times you can just look at the chart and see the S&R. Then again, since I've started trading fx, I dream about charts. Total addict now.

 

[forexdiscussion]

Hi,

This is my first real post. I'm a new trader so forgive me.

I am learning to spot support / resistance levels from charts (FTSE 100 mainly).

Are there any formal methodologies for this type of thing?
Any websites post this type of thing? (Is anything posted on this website?)
Or is this information closely guarded secret that people keep to themselves?

Another question about support/resistance levels: How long do they last for? For example, suppose 2 weeks ago there was good support at X points which wasn't broken, market moved higher and now comes lower again, can this support at X still be valid? What if the time was 2 months? 6 months? etc. I would suspect that the support "degrades" over time, is it the case?

Thanks in advance.

This is what we call a price action pattern at the support and resistance. Trade entry and exit is being determine by the price action pattern at the support and resistance and confluence by indicator as further confirmation.

Happy Trading!!!!