need help on support and resistance lines

hi to all , i had been into forex for about 6 months already.

i would like to learn more about support and resistance lines.
how to draw it etc.

What books should i read?

I mean those lines like diagonal that connect low to low and high to high
as well as pivot? and tops and bottoms.

Also is there any good thread about support and resistance around?

http://www.trade2win.com/boards/first-steps/4629-basics-trading.html
http://www.trade2win.com/boards/pri...port-resistance-demand-supply-abridged-6.html

TRY THIS:

http://www.babypips.com/school/support_and_resistance.html

There's more.......

ftse1001 said:

TRY THIS:

http://www.babypips.com/school/support_and_resistance.html

Click to expand...

Trading these lines can be very profitable, and you can do away with indicators if you follow a few simple rules...

1. The steeper the line the shorter it lasts, keep your stops tight if it moves away quickly. Keep your stops just above (resistance) or below (support) the line.

2. The price will always move back towards the support or resistance to test it, if there’s been a sizeable move, wait for the consolidation to bring it back to the line, then trade.

2. You need at least three touches (or points in a line) to confirm that it is a support or resistance level. Two is not enough. If the price action moves away fast from the line connected by these points it’s probably the dying gasp, but don’t trade until you hit that line again.

3. A good way to choose an entry is to look for an established line and follow it up with sell orders a few pips below (support) or buy orders above the line (resistance) in the opposite direction.

4. If a “trend” is older and you're not sure if it's going to break or not, wait till you're on the line and then straddle it, that way you can get into an older move. I wouldn’t recommend this though; rather wait for a change in direction. Once you’re into the rhythm you’ll almost always have an open position.

5. If you’re not sure phase in your trades, add to your position every ten or twenty pips.

6. Breaks off support and resistance are generally confirmed by big bars or a big bar, so if you see one on a line you know the “trend” has probably changed.

7. Price does not like support or resistance levels. It mostly tests them and then moves away quickly. You’ll rarely find much price action in the vicinity of the line. If price is hanging around a support or resistance level, it’s likely to break in the opposite direction.

8. If the market is moving up you only trade the support line, if down you only trade the resistance line...





The above is valuable for determining entry points

Courtesy of :

Jacko's Forex House of Pleasure and Pain - Page 15

:smart: