Jump to content

Welcome to Digital Money Talk Forum - Forex, Ecurrency exchange and Cryptocurrency Forum - Sponsored by 1xBit.com
Register now to gain access to all of our features. Once registered and logged in, you will be able to create topics, post replies to existing threads, give reputation to your fellow members, get your own private messenger, post status updates, manage your profile and so much more. If you already have an account, login here - otherwise create an account for free today!



Chain.group


Orbex


1xBit



Read our Advertising Disclaimers


Refund Policy


Photo

Support-Resistant


  • Please log in to reply
11 replies to this topic

#1
ellliottt

ellliottt

    Advanced Member

  • Members
  • PipPipPip
  • 103 posts
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:

Posted Image

Posted Image

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 ...
  • 0

#2
standart

standart

    Advanced Member

  • Members
  • PipPipPip
  • 4,800 posts
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.
  • 0

#3
Nikhil

Nikhil

    Advanced Member

  • Members
  • PipPipPip
  • 1,234 posts
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 .
  • 0

#4
yogesh

yogesh

    Advanced Member

  • Members
  • PipPipPip
  • 4,090 posts
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.
  • 0

#5
heartboy23

heartboy23

    Member

  • Members
  • PipPip
  • 45 posts
For me it is a little complicated but i'll try to understand atleast
  • 0

#6
ganthiraj

ganthiraj

    Advanced Member

  • Members
  • PipPipPip
  • 135 posts
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,
  • 0

#7
Pamm Manager

Pamm Manager

    Member

  • Members
  • PipPip
  • 27 posts
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.
  • 0

#8
RASTA

RASTA

    Member

  • Members
  • PipPip
  • 21 posts

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.


  • 0

#9
standart

standart

    Advanced Member

  • Members
  • PipPipPip
  • 4,800 posts

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.


  • 0

#10
myregister

myregister

    Advanced Member

  • Member
  • PipPipPip
  • 6,698 posts

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.


  • 0

#11
silent192

silent192

    Newbie

  • Members
  • Pip
  • 7 posts

I mostly just recognize support and resistances from previous price action, worked fine so far.


  • 0

#12
Sininfinity

Sininfinity

    Advanced Member

  • Moderators
  • 546 posts

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?


  • 0