How to draw support and resistance in a professional manner - Singapore Forex Trading, Singapore Forex Academy, Singapore Forex Association

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How to draw support and resistance in a professional manner

Many traders have been doing the drawing Support (S) / resistance (R) becomes a lot more difficult that it should have. After you have gained general knowledge about how I painted it, you will not encounter any problems in themselves paint again.
Many traders have been doing the drawing Support (S) / resistance (R) becomes a lot more difficult that it should have. After you have gained general knowledge about how I painted it, you will not encounter any problems in themselves paint again.
There are 3 common assumptions about drawing S / R is: GT1 : You should drawing all the way which you can see on the chart - Many traders have fallen into this trap, they took an hour to draw all these roads. And finally, what they get is a chart of trouble, but it basically is not good at all. You should learn to paint only in one level (level) on the chart, then you will find it useful as how in a specific time frame. GT2 : S / R should be drawn from the highest point (High) and the lowest (Low) of the price , this one may prove to be common that the trader when drawing content - Typically, the S / R is considered the area (zone) rather than the (level), occasionally you'll have called Key price level is the level, and we also painted the S / R in the middle of the ball (tail) or even in the middle of candlesticks. The bottom line here is that you are not always accurate drawing at low or lowest high point of the candle. GT3 : You should pull back past chart so far to draw the S / R of you - Unless you is a long-term investor with a buy and hold policy, otherwise you do not need to drag the chart for more than 8 months to paint. I'm not sitting here trying to draw the S / R from over 5 years ago as some other trader ... You're wasting time if you're doing that. OK! Now that we have renewed the conventional thinking, embarked on painting alone:

​ex1: EURUSD daily chart we look at the EU, you pay attention to the red line is long and the blue line is the short term. This is how all the examples in this article were presented, and hope it will help you more easily distinguish what I call the "Key level" with the level of short-term level khac.Trong this example, you can It is clear the market is moving in the range between 1.3140-70 resistance and 1.2830 support. This is what I called the Key Level EU in this chart. And in this range, we have short-term rates, especially 2 road Shorter-Term Resistance   plotted in Fig. We see road near 1.3070 touched on October 5th candle and passed it between themselves and others from October 17th shadow - 23 rd again, it is a good sign ... A level of S / R can be very meaningful right Even if they do not exactly touch the correct High or Low of the candle. This also occurs with near 1.3140 levels, it does not touch on September 14th and 17th High ... This being said S / R is the region (zone) rather than exact a degree or road. Then we see an Inside Bar on October 18th, then the price starts to go down, it has tried to increase the price but even I draw the blue line acts as a resistance to keep the price up and then we see the price go down always from there. There are a few subtle points you need to learn to draw level at this ... especially in the short term. Pair of Inside Bar which acts as a resistance, and often the Break Point Inside Bar will be S / R, even in the short term.

Support - resistance 1
EURUSD daily
ex2: GBPUSD daily
These are good examples for your reference: When drawing S / R on the graph, draw the long-term rate (longer-term "key" levels) before, then drawing to the short-term rate ( shorter-term levels). This will give you a visualization of current market conditions as well as the analysis routines for you again.
One of the things I used to say it was S / R normally is a "region" rather than a price somehow. The figure below is an illustration or for this, while resistance is 1.6270-1.6310 price zone.
The support / resistance important ("key" support or resistance) is normally the level at which prices were "turn "a strong and make the price go up or go down significantly, or" contains "or" supports "the price several times. Meanwhile, short-term rates led to a move less and could be dealt with more easily. We place as shown below:

Support - Resistance 2
GBPUSD daily
ex3: AUDUSD daily
chart look at, we may see the AUDUSD is trading in a range between 1.0612 - 1.0175. In particular, 1.0612 is the "key resistance" because it has created significant change point and hold for 2 times the previous test. Similarly, 1.0175 is the "key support" because it created the big move and be kept in the test 4 times. And shorter-term level at 1.0410 also create large movement but not by said two levels. As you can see, some of the lines will show you the road is more important in your analysis, but in the meantime you have to remember the logical reason as "this level many times to keep prices", or "Level This has created a large movement "...

Support - Resistance 3
AUDUSD daily
ex4: daily USDJPY
USDJPY On the chart below, we will find all the "Key Levels," because I do not see anything considered as "Short-term Levels". The reason I drew all these roads is that it has created a significant movement. Currently, the USDJPY is moving up, if break past the resistance near 80.37, we will see the price would have been a fulcrum for the rise again.
It noted in this chart is the tail (or "Bulb" ) candle. Remember that a few Levels (levels) are not exactly at the point drawing High or Low of the candle which is passing through the middle part of Ball candles. This I said at the beginning of this article. In fact, a level that may go through many candles are more important Gloss is correct when it went through two or three points High / Low of the candle . An example of this is illustrated in the chart below 78.79 level, I have tried to draw to it goes through many possible Ball candles instead of moving up a bit to touch the points High / Low of some candles. Draw Level in this way will give you a better reference point to find the signal, because you're closer to the decision point (Turning Point) of the market. But it does not mean you should never be drawn in points High / Low, because you can do it, and very much behind the other, but it just means you do not always necessarily so draw .

Support - resisting 4
USDJPY daily
ex5: NZDUSD daily
chart NZDUSD In below, I want to note with you the so-called "critical area" (Value area). Basically, there is another calling for the cumulative price (consolidation). This price range or as the S / R, which means that when prices recovered to close them, you can find the signal Price Action to disable the command. You also sometimes see the level S / R current passing between this important area as the blue line in the chart below. And with this example, the blue line will be good for the support we seek a buy signal if the price down very close.

Support - resisting 5
NZDUSD daily

ex6: daily USDCAD
USDCAD chart below is a good example of "Value area" we just said above. Note how accumulation creates price, then the price back towards this region and met resistance at the center of this zone at 0.9883 on October 3 rd . Then, when prices break above the formation area, the signal Inside Bar while back, showing the rejection rate is continuing to go up.
So this could be a simple strategy for you, wait for the price break through from Key Level, then the test and seek feedback signal in this area in order to follow the initial trend.

Support - resisting 6

ex7: EURJPY daily
We see EURJPY has formed an uptrend since late May 7. And the level or the support is formed at the end of the price adjustment process. And in a market like this trend, we can look at the Swing Points signal. For example, the uptrend signal we can find at the point where resistance became support after prices break through them, in the example below is in the signal near 102.50 with Pin Bar

Support - resisting 7
EURJPY daily

ex8: daily XAUUSD
Gold In chart below you can see that I've come back about 8 months to draw their long-term levels. And this is the longest period of time when I draw these levels on the chart Day. And again, the longer-term "key levels" is the level of mobility creates a substantial and / or keep it not broken in several times. Shorter-term levels is also a move to create a little more and maybe the "new" more. You do not need to draw too many short-term rates, which make sense solution and decide which one is the most obvious and draw on. If you draw too many S / R in, you will see a chart clutter and just make you confused, you do not even dare make transactions because they think there is so much that the price level to overcome.
This is only an important point that you should remember: In an uptrend, resistance will often broken, and in a downtrend, the support will often broken. And you have to look at the context of the market where your Set-up form and feeling to decide ... not all the levels you find them meaningful.

Support - resisting 8
Gold daily

ex9: daily WTI
crude oil chart below gives us an important lesson. Pay attention to the bar marked Pin tree, it showed strong rejection at important resistance, and then the market pulling in about 6 days have gone lower. And Stop Loss (SL) of you simply just put in on the highest point of the tree that Pin Bar, and obviously above the key resistance at the $ 93.65 area. If you enter and set Stop Loss orders like this, there is no reason to panic when the market goes against and almost hit your SL. That was the case in this example, if you panic, there remain market and then earn profits like this?
lesson is: Trust the Stop Loss if you have booked your them on the Key S // R or a certain logic region.

Support - Resistance 9
WTI daily

I hope you have learned something about how I draw the S / R on the graph, why paint it and draw anywhere. This is not a real job as difficult as many traders did. When still skeptical, think slow and step by step, ask yourself whether you plan to draw level at mean not and why. For example, you might say, "This Level is important because it clearly makes a significant move recently." If you draw S / R follow logically so, you will save yourself a lot of time. Do not draw too many lines on the graph, and finally do not know what is happening on the chart as the other traders.

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