What Support/Resistance indicators do you use

[mintywang]

Hey guys,

What support/resistance indicators you think are best for swing trading (buy n sell within a few days)? I draw my support/resistance lines manually by visually looking at the chart and identifying horizontal levels of S/R and as well as any trendlines. But as we know, the eye only sees what we want to see. And often, I seem to get caught by a resistance i didn't see. And my trade turns from a slight profit into a loss.

Lately I've been experimenting with Pivot Points which is more commonly used for day trading but i still use them on my daily charts (so pivot points r calculated base on previous month's data) n so far quite ok (haven't collated much results yet). I don't use them as entry points (i.e. if price is at Support n fit other criteria then buy) but rather if the next resistance level is a distance away n fits my other criteria, i will buy, else if the resistance level is too close, i will skip this.

I'm curious to know if any others use Pivot Points and how useful they are on daily charts for equities - if u could share your experiences and knowledge on this. If not, what other S/R indicators do you use and how do u use them?

 

[Vicorka]

Hey guys,

What support/resistance indicators you think are best for swing trading (buy n sell within a few days)? I draw my support/resistance lines manually by visually looking at the chart and identifying horizontal levels of S/R and as well as any trendlines. But as we know, the eye only sees what we want to see. And often, I seem to get caught by a resistance i didn't see. And my trade turns from a slight profit into a loss.

Lately I've been experimenting with Pivot Points which is more commonly used for day trading but i still use them on my daily charts (so pivot points r calculated base on previous month's data) n so far quite ok (haven't collated much results yet). I don't use them as entry points (i.e. if price is at Support n fit other criteria then buy) but rather if the next resistance level is a distance away n fits my other criteria, i will buy, else if the resistance level is too close, i will skip this.

I'm curious to know if any others use Pivot Points and how useful they are on daily charts for equities - if u could share your experiences and knowledge on this. If not, what other S/R indicators do you use and how do u use them?

If you use daily Pivot Points for daily trading you may try weekly (based on 5 trading session) and monthly Pivots for longer-term trading

 

[Lax_Van_Dumb]

Pivots put structure into your chart. It generally means you have consistent rules for profit taking and stop setting. When you have 2 or more pivots line up then that is usually a strong signal to enter or more usually get out of a trade.

 

[DionysusToast]

Volume at price - basically looking at where the bulk of trading occurred as opposed to where price went at the extremes.

 

[subarashi]

Hey guys,

What support/resistance indicators you think are best for swing trading (buy n sell within a few days)? I draw my support/resistance lines manually by visually looking at the chart and identifying horizontal levels of S/R and as well as any trendlines. But as we know, the eye only sees what we want to see. And often, I seem to get caught by a resistance i didn't see. And my trade turns from a slight profit into a loss.

Lately I've been experimenting with Pivot Points which is more commonly used for day trading but i still use them on my daily charts (so pivot points r calculated base on previous month's data) n so far quite ok (haven't collated much results yet). I don't use them as entry points (i.e. if price is at Support n fit other criteria then buy) but rather if the next resistance level is a distance away n fits my other criteria, i will buy, else if the resistance level is too close, i will skip this.

I'm curious to know if any others use Pivot Points and how useful they are on daily charts for equities - if u could share your experiences and knowledge on this. If not, what other S/R indicators do you use and how do u use them?

Ichimoku and guppy Moving Averages

 

[FringFX]

Hello mintywang,

Since pivot indicators are based on price, they are artificial themselves. I have used pivots before and realized they just duplicate what real Supports and resistances do, and hence I discarded them in my charts. The S and R that you draw on your charts are the real S and R, so they are the most accurate. It goes without saying that the S and R that you use are only as good as your S and R drawing and analyzing skills.

When trading, you have to keep in mind to be dynamic - you have to observe price and go with the flow. If you encounter a "a resistance you didn't see", you have to make a move, either exit your trade or tighten your stops.

 

[stephenlovesforex]

Hi Mintywang,
Swing trading is a rather murky area, its really quite difficult to define what a swing trade really is and for this reason choosing support and resistance may or may not help. However, the literature seems to suggest that a swing trade occurs with some form of short-term price momentum. It is therefore possible to profit from short term movements. However, its not always clear whether or not a key level will hold.
There are many other factors that could affect a price movement. For instance all the politics in Cyprus have had a significant impact on the EUR, the USD and GBP. Which in turn affected the JPY NZD and the CHF and a whole host of other currencies and commodities. So at the end of the day it depends on how the key players (banks and institutions) will react to news and politics. As a general rule (loosely of course), Fibonacci projections and retracements offer and indication of where prices may revert.

I would recommend a book by Robert Fischer, Fibonacci Applications and strategies for traders. This may help in creating a strategy for your trading.

Let me know what you think of it.