Support and Resistance - But Where?

[YachtFund]

Hi All

Im trying to understand where I should place support and resistance lines on my 30 min charts. I open a chart that shows all the price movement in the general area i.e. 100pips +/- current position and I look for where there is obvious support and resistance and draw lines.

I think that works quite well but should I be plotting anything else like pivot points or.....

When I look at the free technical analysis that is around they do tend to differ quite a lot and also seem to miss out obvious points of support and resistance.

How do people generally set up their support and resistance lines and do you change them daily for example?? Is this something thats worth paying for or better to learn?

Thanks in advance,

YachtFund

 

[gus]

If you are going to do this with freeby stuf, then you need to rename your fund to the Dinghy Fund

My TradeStation charting applications automatically do S/R lines in color. These are also called pivot lines or zones. In some cases traders set a limit order on or near a line and as you can see on the chart that worked very nicely twice today.

Best of luck.

 

[YachtFund]

Thanks for that. Im using MetaStock so I will see if it has an equivalent.

When I do lines I tend to have quite a lot, yours doesn't seem to have much which is nice.

Can I ask what sort of strategy you used on this currency today?

With regards to the fund, the footage does decrease as realism sets in .