The close is particularly important on the daily chart - it represents the mood and feelings of traders at the end of the day and also avoids you plotting the overshoots.
In an ideal world you would plot support on a line chart and then again on a candle chart which gives you a channel - a kind of 'beware' zone but then you end up with so many lines on the chart its impossible to see where a zone ends and another begins
Im not saying that you shouldnt have hlc/3 or anything like that - just showing the way that i do it myself.
One thing that has always helped me is to view support and resistance as a rubberband, in that a rubberband can be stretched without breaking but if stretched enough then it will break. Another thing that I would add would be, (and particularly for a support or resistance on the longer term charts 1-4 hour or daily) is that I don't really consider support to be broken unless price moves below it and then it goes back up to test it, if it's truly broken then that support level should become resistance (and ofcourse just flip everything when dealing with resistance).
Anyway's good job again and I look forward to the next one.
10 comments:
Great stuff Soul! And I thought I wouldn't learn anything new about S/R lines.
Hungry for more
Yeah !!!
Very great demonstration !!! (Not easy to understand all for me because I'm french, but very good job)
Elisabeth
Thank you for the nice video.
What makes close more important than high or low? Would some sort of average (say, H+L/2) be better for S&R?
The close is particularly important on the daily chart - it represents the mood and feelings of traders at the end of the day and also avoids you plotting the overshoots.
In an ideal world you would plot support on a line chart and then again on a candle chart which gives you a channel - a kind of 'beware' zone but then you end up with so many lines on the chart its impossible to see where a zone ends and another begins
Im not saying that you shouldnt have hlc/3 or anything like that - just showing the way that i do it myself.
if hl/2 or hlc/3 works for you then do that :)
Nice work ST, keep 'em coming. Very interesting how the S & R looks a bit different when plotted using the line chart - never really thought about it.
Chris
Good job Soultrader,
One thing that has always helped me is to view support and resistance as a rubberband, in that a rubberband can be stretched without breaking but if stretched enough then it will break. Another thing that I would add would be, (and particularly for a support or resistance on the longer term charts 1-4 hour or daily) is that I don't really consider support to be broken unless price moves below it and then it goes back up to test it, if it's truly broken then that support level should become resistance (and ofcourse just flip everything when dealing with resistance).
Anyway's good job again and I look forward to the next one.
Good trades,
Ben
Nice one Soul....excellent first video
Learnt something new and your accent wasn't too hard to take
All the best and I look forward to the next one
Cheers
Great video.
Love you accent.
Hi Soul...
Very helpful information. Now I have an idea how to find S/R levels.
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