how to work out support and resistance

megamuel said:
Jon have a read of this:

Support & Resistance Basics

Magos, out of interest have you got that EA for the support and resistance or pivot points? I have just downloaded Metatrader and would be good if I had something that automatically plots pivot points as I am trying to learn how to trade with a pitchfork. Cheers!

Sam.

P.S. I haven't got a clue how to program an EA or install it or whatever you do as I only just downloaded meta trader!
Click to expand...



I have but is at work :( will send when I go on sunday/monday
 
hey guys..thanks for the info.

ive downloaded and installed metatrader 4.
But im confused.
Does this allow me to analyse UK FTSE company stocks?
or is it just usa markets and forex only?

i need to open an account?
terminal? client terminal? server.... etc....

it looks good....
 
jonboy123 said:
hey guys..thanks for the info.

ive downloaded and installed metatrader 4.
But im confused.
Does this allow me to analyse UK FTSE company stocks?
or is it just usa markets and forex only?

i need to open an account?
terminal? client terminal? server.... etc....

it looks good....
Click to expand...

hELLOW :)

You can download metatrader from ODL Online Spread-Betting Accounts | Financial Spread Betting Companies UK, Ireland

There is a catch though lol, MetaTrader is used for CFD's and mostly OTC products.
If you want to sell /buy Stocks not CFD's, download a platform from barclays stockbrokers or Man Financial,etc.

Also forex can be either : SPOT,CFD's,FORWARDS,FX SWAPS and FX Options
meaning can be physical or rolloling positions


First find out exactly what you want to trade !!!!
 
Magos said:
hELLOW :)

You can download metatrader from ODL Online Spread-Betting Accounts | Financial Spread Betting Companies UK, Ireland

There is a catch though lol, MetaTrader is used for CFD's and mostly OTC products.
If you want to sell /buy Stocks not CFD's, download a platform from barclays stockbrokers or Man Financial,etc.

Also forex can be either : SPOT,CFD's,FORWARDS,FX SWAPS and FX Options
meaning can be physical or rolloling positions


First find out exactly what you want to trade !!!!
Click to expand...

man this is so damn comlex.
I just want to use metatrader to see what its like...to learn....use past data,...to practice....data like UK FTSE stocks.......

ive installed MT4 already..... havnt registered an account yet....there seems to be like only usa ones and forex options.

WOuld this be the same version/package from the ODL link you mentioned?

I dont want to sell or buy anything with mt4........not yet anyway.......
i have 3 brokers im testing at the mometn, selftrade/hoodless/TDwaterhouse.

so im happy using my currnet brokers..... but someone just suggested using MT4 to make it work out support resistance levels for me automatically and other analysis like this..........so i just wanna check it out as an analysis tool..........can i do this????

i plan to open a CFD account soon tho, that sounds good.

MT4 mainly for CFD you say.......well.........we can buy UK FTSE shares via CFD's.........so...... the data should be the same.......right?

thankyou thankyou thankyou thankyou
 
jonboy123 said:
man this is so damn comlex.
I just want to use metatrader to see what its like...to learn....use past data,...to practice....data like UK FTSE stocks.......

ive installed MT4 already..... havnt registered an account yet....there seems to be like only usa ones and forex options.

WOuld this be the same version/package from the ODL link you mentioned?

I dont want to sell or buy anything with mt4........not yet anyway.......
i have 3 brokers im testing at the mometn, selftrade/hoodless/TDwaterhouse.

so im happy using my currnet brokers..... but someone just suggested using MT4 to make it work out support resistance levels for me automatically and other analysis like this..........so i just wanna check it out as an analysis tool..........can i do this????

i plan to open a CFD account soon tho, that sounds good.

MT4 mainly for CFD you say.......well.........we can buy UK FTSE shares via CFD's.........so...... the data should be the same.......right?

thankyou thankyou thankyou thankyou
Click to expand...


Sorry to get you confused just download ODL Metatrader and unistall all others they have cfd's for FTSE :)
 
"Sorry to get you confused just download ODL Metatrader and unistall all others they have cfd's for FTSE
__________________"
thanks...... but the site does not mention MT4..... and i have to open a proper trading account with ODL..... i dont wanna join another broker.......
 
Magos said:
ODL Markets | Meta Trader 4

Demo account :)
Click to expand...

man thankyou...sorry to be a pain.
ive just downloaded and installed it.
i ticked forex and cfd and oil options when downloading.
but now....thenonly account options are forex......i cant have a log in or password once this first box is filled in......ive emailed odl...they want my phone number...i dont wanna give it to them.....
 
does support and resistance need to be established using a weekly or daily chart ? or i can use wahtever time frame?
 
It depends jon

If you want to trade between longer term s&r then use daily/weekly

If you're looking at shorter term then use shorter term charts.


Personally I think that using a platform to draw it for you is a huge mistake. Drawing the zones (they are not lines really) is a very important part of learning.
 
ive read that for a trend line to be valid, it needs to touch 3 times.

How many times must price touch one level, for it to be support/resistance?

In regards to candlesticks, support/resistnace: can it be anywhere either between the body of candle, or anywhere along the shadow/wicks too??? ie...anywhere in between the bars highest and lowest range...?
 
I would say once is enough, although I think they become more meaningful if it touches again, perhaps many bars later, and even more interesting if it touches again from the other side, i.e. support becoming resistance, or resistance becoming support - what some people call a S/R pivot, or others a price pivot zone (since, as nine says, it's usually more of a zone than a single level).

Even more interesting if they line up with one or more significant Fibonacci retracement levels.
 
jonboy123 said:
hi, say if im looking at finding swing trading opportunities.
I hear i need to really understand and study sup & res concept.

How long on the time frame should i be using to find the sup and res levels?

this depends on you trading timeframe, if you are looking to make a trade over the long term, you may want to locate support and resistance off of a daily or weekly chart, if medium terim, it might be 4hr and daily charts, if short term 1hr and 4hr charts...

Would i need to draw the sup and res levels myself?
or does software do it for you?

its not hard, look at a chart, swing highs and lows are where you will find areas of support and resistance. price goes up, hits supply and reverses. price goes down, hits demand and price reverses.

How would i find the sup and res levels?
Ive read the relevant chapters in the books.

these levels are areas where price is struggling, to go past, it may 'test' it several times before breaking through it to 'test' further S & R, or it might sharply reverse in the other direction once hit.

WOuld i just visually look to see where two lows or two highs happen?
and then roughly find something like tthat?

roughly, yes, it is not an exact science, it comes with practice and observing the market, it is very subjective, but elementary as far as trading goes. each trader sees these levels differently based on their trading time frame and their view of the market. but generally, they are not hard to find the more you follow

thanks.
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in bold and attached below
 

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jonboy123 said:
ive read that for a trend line to be valid, it needs to touch 3 times.

you wont have a trendline until you have at least 2 points, then the third touch will confirm it as a trend line, twice is a coincidence, 3 times not so much so. this does not necessarily mean you should trade off of the 3rd or 4th touch, anything can happen, you should use other analysis to confirm your judgements and wait and see what the price does when it approaches these areas.

How many times must price touch one level, for it to be support/resistance?

it is not set in stone, when price approaches these 'levels' you make yourself available and see what happens.

In regards to candlesticks, support/resistnace: can it be anywhere either between the body of candle, or anywhere along the shadow/wicks too??? ie...anywhere in between the bars highest and lowest range...?

did price turn around there? is there supply there? is there demand there? is it going to break through? is it worth noting? is it going to hold and reverse? do you know the answer to any of these questions? do you know what the market is going to do next? because noone does for certain until it happens.

the questions is, do you think that you are observing an significant price 'area' level?
Click to expand...

in bold
 
i find it easier to squash the chart right up, so it's only like a few inches tall, then i look for s+r. i just find the levels get more obvious if you do this, might just be me though.
 
Some people find they are easier to spot using bars, rather than candles.
But it's a very personal thing, so try both.
 
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