ellliottt Posted December 24, 2010 Share Posted December 24, 2010 Support-Resistant In forex trading, the price is formed actually follow the market mechanism, meaning the power of buy-sell in the market. Therefore, there are certain price levels are usually the psychological level of the "agreed" by traders. There is a price level that is perceived by traders as prices are already considered high, so that those who buy a tendency to do a take profit. Well, because it occurs in general, the price will usually be corrected (decreased). That is what is called resistant level. On the contrary happens, too. There is a price level which the trader is considered low enough, so that those who sell and take profit will perform as a result, prices will be corrected (increased). That so-called support level. Consider the following picture: Well, if we can find out the points-resistant support this, then we can know when to make buy, when to sell and when to take profit The problem now is, how to determine those points? The most common practice is to calculate the pivot or by using the Fibonacci benchmark The formula for calculating pivot points are as follows: Pivot point (PP) = (High + Low + Close) / 3 Support and resistance is then determined as follows: The first level support and resistance: First support (S1) = (2 * PP) - High First resistance (R1) = (2 * PP) - Low Second level support and resistance: Second support (S2) = PP - (High - Low) Second resistance (R2) = PP + (High - Low) Complicated ...? hahaha ... Do not worry ... you actually do not have to use their own formula and calculate these pivot ... I deliberately put here to make you dizzy ... lol ... just kidding ... Quote Link to comment Share on other sites More sharing options...
standart Posted December 28, 2010 Share Posted December 28, 2010 Thanks for your explanation and this is make my knowledge about support and resistance improve. so far I am only use channel indicator and pivot to see support and resistance area. pivot is complicated but can found pivot indicator when googling. its make more easy than calculated it self. Quote Link to comment Share on other sites More sharing options...
Nikhil Posted February 27, 2011 Share Posted February 27, 2011 No doubt the thread is very important but for daily support and resistance i also depending one indicator which i got from mt5 forum and its very helpful to know both level each day . Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted April 26, 2011 Share Posted April 26, 2011 I understand the importance of support and resistance level though i dont study charts nor I understand them well but i watch the movements and by watching i easily understand support and resistence levels which work as entry and exit points in my further trades. Quote Link to comment Share on other sites More sharing options...
heartboy23 Posted March 24, 2012 Share Posted March 24, 2012 For me it is a little complicated but i'll try to understand atleast Quote Link to comment Share on other sites More sharing options...
ganthiraj Posted June 24, 2012 Share Posted June 24, 2012 This MTF Indicator draws horizontal lines. You can change the parameter Ex: The TimeFrame can be set to 1, 5, 15, 30, 60, 240[H4], 1440[Daily] and 10080[Weekly]..... You can also change the BarsMax but should not be less than 55..... I do not have idea for the other setting. I am experimenting it and trying to use it in conjunction to Price action such as 1-Pinochio bar 2-DBHLC and DBLHC. Visit James16 Price Action Chart Thread...... I hope someone can share any ideas to this indicator. Hope this help, Quote Link to comment Share on other sites More sharing options...
Pamm Manager Posted October 18, 2013 Share Posted October 18, 2013 I like support - resistant system. This is a simple ones I think. And we can using indicator to reag the support - resistan. Really suitable for trader beginar or profesional. Quote Link to comment Share on other sites More sharing options...
RASTA Posted October 26, 2013 Share Posted October 26, 2013 whose name is the point of support and resistance is the most important for traders to understand because it includes are the critical points of the price I like support - resistant system. This is a simple ones I think. And we can using indicator to reag the support - resistan. Really suitable for trader beginar or profesional. Quote Link to comment Share on other sites More sharing options...
standart Posted January 23, 2014 Share Posted January 23, 2014 market form in fractal which create ups and downs. ups is support and downs in resistance. by point out potential level of support and resistance, traders have clue what they need to do in trading. traders know where the entry level and open positions at the good spot or level. Quote Link to comment Share on other sites More sharing options...
myregister Posted November 21, 2014 Share Posted November 21, 2014 Simple but still proven to bring more benefit for trader. Support is good for the rising reversal while Resistant is falling reversal, but if there is a breakout and especially if the breakout is strong, the price could reach to the higher resistance or lower support. Quote Link to comment Share on other sites More sharing options...
silent192 Posted April 8, 2017 Share Posted April 8, 2017 I mostly just recognize support and resistances from previous price action, worked fine so far. Quote Link to comment Share on other sites More sharing options...
Sininfinity Posted May 2, 2017 Share Posted May 2, 2017 This MTF Indicator draws horizontal lines. You can change the parameter Ex: The TimeFrame can be set to 1, 5, 15, 30, 60, 240[H4], 1440[Daily] and 10080[Weekly]..... You can also change the BarsMax but should not be less than 55..... I do not have idea for the other setting. I am experimenting it and trying to use it in conjunction to Price action such as 1-Pinochio bar 2-DBHLC and DBLHC. Visit James16 Price Action Chart Thread...... I hope someone can share any ideas to this indicator. Hope this help, James 16 is a popular method and many praise it and many say bad things against it. The thread itself is flooded and so I haven't put the effort to read it. Also I heard that James himself is not active in his private site anymore. The supporters are running it. Any update on this thing? Quote Link to comment Share on other sites More sharing options...
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