Jump to content
Exchange Blog Cryptocurrency Blog

Verifpro


Best Change



Support-Resistant


Recommended 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:

 

suppoet-resistance2.2.jpg

 

support-resistance1.2.jpg

 

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 ...

Link to comment
Share on other sites

  • 1 month later...
  • 1 month later...
  • 10 months later...
  • 3 months later...

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,

Link to comment
Share on other sites

  • 1 year later...

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.

Link to comment
Share on other sites

  • 2 months later...
  • 9 months later...
  • 2 years later...
  • 4 weeks later...

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?

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...