Simple Support and Resistance (Dynamic and Static) part 1
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Thread: Simple Support and Resistance (Dynamic and Static) part 1

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    Rookie rinaji's Avatar
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    Simple Support and Resistance (Dynamic and Static) part 1

    First of all, you don't ask who I am, Am I an expert or a newbie, I am not an expert, and I am not a newbie. I am just a trader who find identity as a better trader in this forum.

    I don't share the patent strategy, but I am just sharing an understanding of the methods for analysis. I am not a guru, I am just learning. And I'm studying through observation for this method. So do not ask about this strategy worked on me or not. To be honest, I've already tried and I'll always try to understanding more deeply about simple technical methods. (just find my trading journal).

    Indicators that I use: trend line or trend channel, and horizontal line or rectangle.
    I divide into 2 market conditions: trends and sideways.

    In this thread (part 1), I just share about how to draw a trend line to determine dynamic support and resistance on a market trends.

    MARKET TREND
    In determining the trend manually, you must understand the four terms:
    1. Higher high/ HH
    2. Higher low/ HL
    3. Lower low/ LL
    4. Lower high/ LH

    UPTREND
    Price movements form the HH and HL.


    DOWNTREND
    Price movements form the LL and LH.


    Note: H and LH = peak, L and HL = trough
    It takes at least 2 troughs or more to draw a bullish trend line, and it takes at least 2 peaks or more to draw a bearish trend line.
    Example:

    Note: HL and LL = dynamic support.
    LH and HH = dynamic resistance.

    To be continued and Good luck

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    Rookie rinaji's Avatar
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    I didn't find any visitors here/ in my thread.

    I created a sample of dynamic resistance pattern using the Lower High theory (LH) through the trend line. This is the actual market (usd/chf). Time frame = H4. We'll see .., Bearish trend over the last few weeks have formed a row of LH (dynamic resistance), a perfect major trend.

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    Last edited by rinaji; 03-17-2014 at 01:27 AM. Reason: re attach image
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    i am also using trend line and support/resistance levels. But i have few questions though . Since we have several time frame when we are trading different time frames may give us different trends. in such time how to decide which is which. I mean i may have a nice uptrend in the short term chart (M15/M30) . But similarly in the H4 or Daily chart it may be a strong down trend. So how can we trade in such situations. And on which chat we should draw the trends lines? which is more reliable Further if there is a break out how many pips we should target?

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    Quote Originally Posted by sasa0220 View Post
    i am also using trend line and support/resistance levels. But i have few questions though . Since we have several time frame when we are trading different time frames may give us different trends. in such time how to decide which is which. I mean i may have a nice uptrend in the short term chart (M15/M30) . But similarly in the H4 or Daily chart it may be a strong down trend. So how can we trade in such situations. And on which chat we should draw the trends lines? which is more reliable Further if there is a break out how many pips we should target?
    changes in the price will start from a lower time frame so that the change in price in a small time frame is also a good part in this trade to continue to be observed in trade, but are evident in this trade we should do in trading is to see how the prices break points of support and resistance in the price of the higher time frame so that there is continuity between the lower time frame to time frame height

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    Rookie rinaji's Avatar
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    Quote Originally Posted by sasa0220 View Post
    i am also using trend line and support/resistance levels. But i have few questions though . Since we have several time frame when we are trading different time frames may give us different trends. in such time how to decide which is which. I mean i may have a nice uptrend in the short term chart (M15/M30) . But similarly in the H4 or Daily chart it may be a strong down trend. So how can we trade in such situations. And on which chat we should draw the trends lines? which is more reliable Further if there is a break out how many pips we should target?
    Good question, I never distinguish between major and minor trend trend, because both are related. There is a storyline in the market. That is why I will divide the thread into several parts, I want to share everything clearly from what I understand. I use all time frames to analyze the market. I will explain through pictures. Stay follow this thread. Thanks mate....
    Quote Originally Posted by COMANG View Post
    changes in the price will start from a lower time frame so that the change in price in a small time frame is also a good part in this trade to continue to be observed in trade, but are evident in this trade we should do in trading is to see how the prices break points of support and resistance in the price of the higher time frame so that there is continuity between the lower time frame to time frame height
    Thank you for your answers and explanations my friend, I completely agree with your opinion. And that's what I understand. Never separate the storyline of the market. There is a relationship between lower time frame and higher time frame.

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    i can see that you are using the trendline to determine your support and resistance points. this is good but what i read about it is that when price hits a trendline a lot, it is most likely to break. moreover, i think that you should also make use of the horizontal resistance and support lines.

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    Registered user Quid's Avatar
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    Quote Originally Posted by erniok View Post
    i can see that you are using the trendline to determine your support and resistance points. this is good but what i read about it is that when price hits a trendline a lot, it is most likely to break. moreover, i think that you should also make use of the horizontal resistance and support lines.
    Through support and resistance level i hope my trading will be more easy,i don't want to live all my life with fighting and struggling in the market,i want to be relax and happy,earn profit from trading easier with all the thing in my side without nothing to worry in the world.

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    Finally successful traders

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    Quote Originally Posted by erniok View Post
    i can see that you are using the trendline to determine your support and resistance points. this is good but what i read about it is that when price hits a trendline a lot, it is most likely to break. moreover, i think that you should also make use of the horizontal resistance and support lines.
    As for my knowledge if the trend line or the support/resistance line was tested several time and didn't break it mean it has a very strong/support. But is such line is broken then market will have a higher correction.

    Thanks all for answering my question looking forward to see the next post by rinaji

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    Quote Originally Posted by sasa0220 View Post
    As for my knowledge if the trend line or the support/resistance line was tested several time and didn't break it mean it has a very strong/support. But is such line is broken then market will have a higher correction.

    Thanks all for answering my question looking forward to see the next post by rinaji
    increasingly difficult to break through price support and resistance in the trade will be a part of this will probably be the price brekout so does the level of support and resistance to see how the strength of the trend that occurred earlier and see if that trend will continue or even turn around because that here the importance of merchant understand how to use support and resistance is

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    This was really useful for most of the traders who do not know exactly to draw the trend lines. Now that we have the basic idea regarding the trend lines, we may try to draw in on the higher time frame always like that of H4 and combine the same with the support and resistance levels for the week which is available from most of the automatic software and by considering the weekly pivot, s and r levels we can take up the trade at ideal price level, this is my suggestion.

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