How many days to go back looking for support and resistance?

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rg12

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For intraday trading and scalping, how many days before the present
trading day should I go back to look for potential support and resistance lines?
Because one trading day is enough to fill my screen with lines and make my
trading range look like every day is going to turn every 5 cents.

Right now I mark potential support and resistance lines from the day before
and look also in the daily chart of the stock that im trading.

Thanks,
Roi.
 
rg12 said:
For intraday trading and scalping, how many days before the present
trading day should I go back to look for potential support and resistance lines?
Because one trading day is enough to fill my screen with lines and make my
trading range look like every day is going to turn every 5 cents.

Right now I mark potential support and resistance lines from the day before
and look also in the daily chart of the stock that im trading.

Thanks,
Roi.
Click to expand...

it would depend on what timescale you are using. Even if you are intraday trading you should be looking at resistance and fib lines from as far back as you can on a daily chart
You have lots of pairs to chose from,so personally I use bigger time frames. Chart attached is of eur/usd showing how i use fib levels intraday to sell from. I mainly use trendlines and 61.8%.
 

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I'm using 1min bars and a daily chart for the more important support and resistance
levels, but i don't know how many days to go back and look for support and resistance
intraday, because in shorter time frames, the previous days are very important...
 
Yeah the longer the periods, the stronger the support and resistance hour. Typically Daily / Weekly are very credible. I would at least resort to 1hr. Anything less than that i don't even look at. But that is just me.
 
lerix said:
Yeah the longer the periods, the stronger the support and resistance hour. Typically Daily / Weekly are very credible. I would at least resort to 1hr. Anything less than that i don't even look at. But that is just me.
Click to expand...

But what about intraday support and resistance and for scalping very short term trades?
There are many support/resistance levels inside each day that may affect the price
when trading short term (1 minute bars), but it looks like there's too many!
 
rg12 said:
But what about intraday support and resistance and for scalping very short term trades?
There are many support/resistance levels inside each day that may affect the price
when trading short term (1 minute bars), but it looks like there's too many!
Click to expand...

Learn the classic pivots, set the previous weeks high and low zone when
the daily sr of those lines up with any previously inviolated level then consider that to be a relevent price to trade around. :cool::cool::cool::cool:
Your broker will come to love you but still treat him or her like you would treat any old prostitute (bitch) just bear in mind that every time you pull the trigger he is pocketing commission from your account:sneaky::sneaky::sneaky::sneaky::sneaky::sneaky::sneaky::sneaky::cool::cool::cool:
 
rg12 said:
For intraday trading and scalping, how many days before the present
trading day should I go back to look for potential support and resistance lines?
Because one trading day is enough to fill my screen with lines and make my
trading range look like every day is going to turn every 5 cents.

Right now I mark potential support and resistance lines from the day before
and look also in the daily chart of the stock that im trading.

Thanks,
Roi.
Click to expand...


As far back as the previous calendar week.

This means that you will have weeks when you are completely inactive, but if you are genuinely a scalper then your methods should be based on mean reversion - and if the price has broken out of the previous week's range this is a dangerous game to play.
 
rg12 said:
But what about intraday support and resistance and for scalping very short term trades?
There are many support/resistance levels inside each day that may affect the price
when trading short term (1 minute bars), but it looks like there's too many!
Click to expand...

You do not use pretty coloured lines for scalping.:!:
 
i typically place more significance on fresher levels than historical ones. The older the level the less significant it becomes.
 
As I siad before: LEARN THE CLASSIC PIVOTS you hopeless mong., All support and resistance equates to is a price range where the POWERFUL buyers and sellers are willing to get stuck in to the markets. If you really are a scalper then you will have to learn how to trade inside this area where perhaps profit taking is goint to offer you a trading opportunity. Alternatively go along to the expo in London next week and hang out with some of the wannabe snakes there.
 

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Support resistance in a nutshell.
Support or resistance is simply a price range that has not yet been violated mechanically travel back along the chart candles until you find a big move in price then take the candle in the extremity call this the controlling price range because it has not been violated then follow your strategy for entry or exit when the price pulls back into that zone for the first time not giving a flying fork if this is 1 day 2 days 3 days 100days but for a scalper look at momentum reversals using stochastics taking a 1 min chart entering with a very tight stop and getting the fark out if it does not go yer way treating yer broker appropriately at the time furiously shoving whiskey and beer down yer neck whats more you'll be a trader my son tommy aint a blooming fool you bet that tommy sees roll on yer rifle and blow out yer brains and go to yer god like a soldier.
 
support is just as effective if broken. too many people get caught up in the belief that it loses credibility when broken. Another mistake is looking for the perfect fit.
 
Bint_Crusher said:
Support resistance in a nutshell.
Support or resistance is simply a price range that has not yet been violated mechanically travel back along the chart candles until you find a big move in price then take the candle in the extremity call this the controlling price range because it has not been violated then follow your strategy for entry or exit when the price pulls back into that zone for the first time not giving a flying fork if this is 1 day 2 days 3 days 100days but for a scalper look at momentum reversals using stochastics taking a 1 min chart entering with a very tight stop and getting the fark out if it does not go yer way treating yer broker appropriately at the time furiously shoving whiskey and beer down yer neck whats more you'll be a trader my son tommy aint a blooming fool you bet that tommy sees roll on yer rifle and blow out yer brains and go to yer god like a soldier.
Click to expand...

Stochastics for scalping? I suppose if someone wants to be a hit-and-miss 'mechanical' trader then yes, paint some pretty coloured lines on your screen and with the aid of an indicator do something when the price crosses it or bounces off it or whatever...etc...
 
new_trader said:
Stochastics for scalping? I suppose if someone wants to be a hit-and-miss 'mechanical' trader then yes, paint some pretty coloured lines on your screen and with the aid of an indicator do something when the price crosses it or bounces off it or whatever...etc...
Click to expand...
If you want to scalp (I don't) then working from a 1,2,3,min chart you cannot read market reversals as in days or swings so you have to have a backtested mechanical strategy. Stochs is just 1 of them.
:cool::cool::cool::cool::cool::cool::cool::cool::cool::cool::cool::cool::cool:
 
Bint_Crusher said:
If you want to scalp (I don't) then working from a 1,2,3,min chart you cannot read market reversals as in days or swings so you have to have a backtested mechanical strategy. Stochs is just 1 of them.
:cool::cool::cool::cool::cool::cool::cool::cool::cool::cool::cool::cool::cool:
Click to expand...

I don't know whats wrong with marking support and resistance levels with
my pretty colored lines...

I stopped using stochastics as it seems to be late or at the exact price movement
which gives me no prediction.
Right now i'm using only MACD and RSI for confirmation of actions (not for trading
ideas which is pretty stupid).

I'm daytrading mostly but also doing alot of scalps inbetween when the market is not going anywhere.

I guess i will keep doing what i did, look for the previous and current day support
and resistance and also look in the daily chart along with watching the SPY and QQQ direction in 1min candles.

Thanks,
Roi.
 
rg12 said:
I don't know whats wrong with marking support and resistance levels with
my pretty colored lines...

I stopped using stochastics as it seems to be late or at the exact price movement
which gives me no prediction.
Right now i'm using only MACD and RSI for confirmation of actions (not for trading
ideas which is pretty stupid).

I'm daytrading mostly but also doing alot of scalps inbetween when the market is not going anywhere.

I guess i will keep doing what i did, look for the previous and current day support
and resistance and also look in the daily chart along with watching the SPY and QQQ direction in 1min candles.

Thanks,
Roi.
Click to expand...

All the indicators are lagging so realistically they are there for confirmation. with taking short move scalps you need a rigidly rule based risk management strategy and that usually means when this line crosses that line mechanically etc. The rest of the indicaters were not developed because they SUCK, (s)lagging or not.:p:p:p:p:p
What assets do you trade?
:smart::smart::smart::smart::smart::smart::smart:
 
rg12 said:
I don't know whats wrong with marking support and resistance levels with
my pretty colored lines...

I stopped using stochastics as it seems to be late or at the exact price movement
which gives me no prediction.
Right now i'm using only MACD and RSI for confirmation of actions (not for trading
ideas which is pretty stupid).

I'm daytrading mostly but also doing alot of scalps inbetween when the market is not going anywhere.

I guess i will keep doing what i did, look for the previous and current day support
and resistance and also look in the daily chart along with watching the SPY and QQQ direction in 1min candles.

Thanks,
Roi.
Click to expand...

I seem to be able to trade without using indicators but I wonder how many traders take into consideration that, apart from being lagging, which to anyone reading these threads, is old news now, anyway, they are based on the closes. The wicks of bars can extend way beyond these points., making stop triggering a very real possibility in many cases.

This makes a case for using a line chart with indicators.
 
Splitlink said:
I seem to be able to trade without using indicators but I wonder how many traders take into consideration that, apart from being lagging, which to anyone reading these threads, is old news now, anyway, they are based on the closes. The wicks of bars can extend way beyond these points., making stop triggering a very real possibility in many cases.

This makes a case for using a line chart with indicators.
Click to expand...

The most common ones are MACD and RSI which are used alot also by the
institutional traders.

I use both and also VWAP in addition (and ofcourse moving averages)

It's all for confirmation only, no trade of mine is based on what an indicator
tells me.

I pay the most attention for the RSI (overbought/oversold) and the MACD
when it crosses near or at the zero point which makes the cross alot more
relevant.
 
I use either a 5 or 10 minute chart and within a week, I begin to notice that some of the levels almost line up (like, +/- 3-5 ticks). That indicates to me that there is a decent support/resistance there and so I remove the excess lines and just place one (with a diff color). It's a simple strategy, but can help you get rid of some of the lines! :)
 
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