Support and resistance (forex)

[wasp]

When daytrading currencies, I tend to only use S/R for the last 24 hours and major previous levels (ie highs and lows over months).

Curious to what extent other traders use as relevant S/R... I've found going back and using the previous 3 days provides too many levels and as I'm not scalping, using too many levels greatly reduces decent trades.

Although semi happy using only previous 24hr O/H/L/C I'm missing opportunities which could have been improved by using more S/R levels.

Catch 22 really, if I use too far = out too quickly. Use only last 24hr = miss out!

Whats the general view on relevant past S/R levels for daytrading spot currencies?

 

[hagadol]

It might depend on what time frame you are trading / using for entries, exits, stops.

Even if you are trading intraday, you need to be aware of where major levels are. I keep a running notepad list, along side the charts, with all the important levels on. I am taking entries off a 1 or 5 min chart.

 

[wasp]

I use 1, 5 and 15 min charts.

I do mark on the major levels, its the smaller levels which are concerning me. The O/C prices are debatable as is, but its the relevance of previous 1, 2, 3 or 4 days which are bugging me.

The more days, the more S/R levels produced and consequently more possible signals yet if only using the last 24hr for S/R (except majors), it can leave it too open and with only a couple of levels to look at.

 

[hagadol]

I use a notepad file, which I constantly update.

A line seperates each entry, unless it is within 6/7 pips of another, then they are pulled together.

As price moves I either delete or edit entries.

Here is my current list for Cable:

1.8085 MNI Channel Top From Nov 28th

1.8005 MNI Fib Res 38.2% 1.7050 To 1.9550

1.7955 R2
1.7950 MNI POssible Option Barrier
1.7950 MNI Fib Res 61% 1.7050 To 1.8500

1.7935/50 MNi Offers
1.7935 April 19th & Jan 25th High

1.7929 Session Spike High After UK Data

1.7911 Recent High
1.7909 Recent High (2nd Test)

1.7904 R1






1.7870/75 Res Becomes Sup
1.7865 Session Low
1.7863 R1

1.7850 MNI Bids
1.7850 MNI 5 Day MA
1.7850 Fib Sup Fri Low To Mon High
1.7847 Session Low
1.7840/50 Res Becomes Sup (Apr 21st Highs)

1.7830 Fib Sup Fri Low To Mon High
1.7827 MNI Gap Base From Apr 21st To Apr 24th
1.7820 MNI Bids Strong

1.7810 Fib Sup Fri Low To Mon High
1.7810 Apr 21st Intraday Low
1.7808 Apr 21st Intraday Low
1.7807 Pivot ========================

1.7782 Apr 21st Intraday Low

1.7776 Apr 21st Intraday Low
1.7771 Apr 21st Intraday Low

1.7767 S1

1.7758 Apr 21st Europe Low
1.7753 Apr 20th Low
1.7748 Apr 18th Intraday Low
1.7746 Apr 21st Low
1.7746 Res Becomes Sup

1.7710 Apr 18th Intraday Low
1.7710 S2

1.7676 Apr 18th Session Low
1.7670 S3

1.7667 Apr 17th Intraday Low

1.7654 Apr 17th Intraday Low
1.7650 Apr 17th Intraday Low

1.7633 Apr 17th Retrace Low

1.7623 Res Becomes Sup MAJOR

1.7601 Res Becomes Sup

1.7532 April 17th Low

1.7508 April 14th Low

1.7482 April 13th Low

1.7460 April 12th Low

1.7442 April 11th NY Spike Low

 

[wasp]

Thats great Hagadol, I shall have a look and compare this evening after finished for the day....

Cheers

 

[hagadol]

Remember that although you and I are trading off short time frames, much of the market, including bigger money, is trading off higher time frames, so we need to be aware of what might be important to them too.

 

[wasp]

From an intraday point of view, watching important and the most relevant S/R levels is vital to ensure profitability, as well as ensuring keeping an eye on the larger time frames too. The larger the time frame the easier I find it to view the important levels.

 

[ForexInvest]

You easily get one indicator that give you that...