Support and Resistance help

roy12

Junior member
17 0
I have been trying to learn about support and resistance. I was following the FTSE100 index today and have tried to plot all the support and resistance levels that I can see on the chart.

I have added the chart on here too:
The bottom line is the support
The middle line is the resistance and new support
The top line is the new resistance

Any help on if I am correctly identifying them would be great.

 

brewski1984

Senior member
2,073 356
Looks ok, I'd be tempted to ignore the middle line on future bars though but we all see things differently. I always find it's best to think of S/R as zones and not exact lines.
 

roy12

Junior member
17 0
Ok thanks.

I was looking at a signal near the top resistance where sellers started to change the direction.

I added the chart here, do you think this signal is valid? I did watch it live and it would have worked - but just wondered if any others would have used this as a signal to sell?

 

bbmac

Veteren member
3,584 787
Given the chart you posted below is how I would have seen it insofar as potential supp/res, and I would have drawn fibs from swing points A B and C to Z, with some unbreeched fibs still remaining of the swings A-Z, and B-Z, and I woulld have added the trend lines as shown. I would also have fibbed swing Z-D. It is not clear from your chart whether the area circles at bottom left of your chart is a swing point but if it is was I would have added that as a potential resistance becomes support swing zone albeit non-immediate and probably weak.

We all do things differently but however you do it - make it a repeating methodology.

G/L
 

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