Topic: To Deal with Resistance and Support - page 2. (Read 295 times)

Personally, for execution we have different time frame that is effective to us base on the backtest we make. But to determine the strong SNR, you can only see them in the higher time frame. Meaning we must have the same plot of SNR when in terms of the higher time frame because it's really obvious. And also, we can confluence them to indicator to strengthen. If the majority of us have the same plotting of SNR, meaning we did it correctly.

You are correct on the point that there is no accurate result of support and resistance this is because of forces of demand and supply, economic determinant factors, policies, market interference etc. which has influence on the market.

Bolliger Band is a useful indicator that can give you a guide on Support and Resistance zone. I should advice that you don't just use Bolliger Band alone, use it along other tools for analysis. 

I would like to let these unprofessionals know that in charting or TA, we analyze our zone first and the zone cant be analyzed without proper support and resistance levels.


That's very much true but I would like to limit its boundary as support and resistance levels for Short time frame traders as 30 min or 15 min really don't provide as much assistance as for the longer time frames 4 hours 12 hours or 1 day. Choosing a longer time frame brings a lot of assistance in analyzing the market because there you have time to read and analyze maximum aspects of the market drow hold your position. On the time frame where you are bound with 30 min or 15 min, support and resistance continuously change due to the market volatility and nonavailability of the psychological ranges.

The rest of the points are sufficient enough to help out a newbie IMO, relatively  , usually its not style but I did liked it as a buddy above used it effictivly.

resistance or support level may persist due to the psychological impact of prices. Traders influence the price, most of them try to take profits near the resistance level, where the bet is on a decline in the price and vice versa, and since the market sentiment is the same and there is not enough volume, the market will follow the same pattern.
We cannot ignore psychological factors when put resistance levels, in addition to the effect of averages.

It is a confirmatory measure alongside other measures and not a single measure, so setting the time frame is determined within your trading strategy.

At the same price or in a same price range, resistance and support will change its role with time. At some point of time, a price is a strong resistance but at another point of time, it will become a strong support.

To deal with resistances and supports, you must know it and in action you must not bind yourself with an idea like that resistance is strong and can not be broken out, that support is strong and price will not be dumped under it. If you have such controversial thinking and belief, you will make bad trading positions and if you use leverage, Futures trading, you will be liquidated.

There's no accurate result of support and resistance IMO, it will eventually break if there's enough buying or selling pressure.
So I think you need this last option to manage your risk and that's setting stop-loss orders to protect their positions in case these levels are breached.

I used this before and it seems it has a good result for me, it's a Bollinger Band.
If you're a day trader, it will identify the potential volatility levels and price reversals, possibly the upper and lower bands can act as intraday resistance and support levels, respectively, IMO.

Would like to highlight this one because as a trader you should have your own timeline and you do focus on that. One of the indicator of being a good trader is not to depend to anyone but of course to have your own trading strategy and you can easily set your trading goal once you already have this one. Well, the first thing that you need to do is to identify what kind of trader are you, usually the resistance and support level analysis works for the position traders as their timeline is longer and have more data to analyze.

This could be correct in my analysis but sometimes it could also change depending on the formation of price action. For a daily trader, 15 minutes, 30minutes, 1 hour and 4 hours is most appropriate but a lesson has to be taken from a daily trading, all trades should be closed at the end of the day.


I was about to add that candlestick formation is also important to know if support or resistance would be broken, that is same force or pressure you are talking about. So with the chart on candlesticks, you can also use it to determine whether a tested support or resistance will give way or do a rebounce to continue reverse position.

Resistance are barriers and places where you encounter selling pressure which can lead to a reversal or a range before breakout. In the financial market resistance happens when the supply of currency, commodity, instrument, crypto etc. is higher than the demand.

Supports are places where you find buying interest. The inverse of Resistance.

Note: Support and Resistance are zones and not a point on a chart as some unprofessional thinks. Support is usually at the base whereas resistance at the top. For a newbie to get it correctly draw it along a trendline or spot turning point on the chart.

As we proceed I will bring few lessons to note.

LESSON 1: Resistance or Support Level may not hold due to the fact that the market is influence by other factors which revolves around economics, politics, natural disasters, wars, interest etc. So use resistance and support alongside other technical and fundamental tools.

The Best Time Frame to Draw Support or Resistance.

There are no best time to draw support and Resistance. Usually or most likely the market respond to Support or Resistance drawn with higher time frame.

LESSON 2: The best time frame to draw Resistance or Support Level is the time frame that is suitable to your trading pattern or style. Read the simple guide below;

Position traders usually use monthly and weekly chart to pin point, place or choose there zones.
Swing traders uses weekly and daily chart to pin point, place there zones.
Daily traders uses daily and hour times frames.
Scalpers has no rule, you become the rule.

Note: Trading is complicated and you need triggers.

To know the Strongest Support and Resistance

I present to you two school of thought; The first believes that ones a Resistant or Support has held more than two times that particular zone should be considered as strong.
The Second believes that ones a zone has been tried more than ones there is high possibility for it to give a way.

LESSON 3:  Always consider the pressure at which the price bounces back. It will tell you much of that zone. Whether the first school of thought or the second as mentioned above you need to know that conditions changes.

Feel free to add you input as there are many lessons to learn.