Results 1 to 7 of 7
  1. #1
    Active Member ehenderichs's Avatar

    S/R on trend lines. Is that a thing? !!!

    Mostly S/R tutorials mention S/R wrt ranging market and are mostly depicted as horizontal lines. I do understand this concept and am learning to draw a few on my maps.

    However when looking a trending markets it seems a similar pattern is visible. Prices seem to react (at least sometimes) on the lower and upper band of trend.
    Can this been seen as support and resistance or am I just imagining stuff. May this is more for the advanced traders and I should stay clear from these possible triggers.

    What is your thought?

  2. #2
    Legendry Member Okane's Avatar
    Trendlines and S/R lines are basically the same thing but just different ways of seeing the charts.
    Sometimes, it's easier to use trendlines (specially when market is trending in a higher low higher high
    manner or lower high lower low manner.

    Most of the times, your trendline is also intercepted by S/R lines.

    I share similar analysis all the time in our Skype group, CommuniTraders-Live
    I suggest you join and also check our YouTube videos on trendlines and S/R analysis
    also named: CommuniTraders Live on YouTube.
    Live Webinar: Hidden Content
    Join My Skype Group: Hidden Content

  3. #3
    Legendry Member Michael Hodges's Avatar
    Lots of things can be support, any type of analysis, that is why using more than one type of indicator is a good idea. Think about it like this. If 25% of the market uses MA's, and 18% use stochastic, and 18% use MACD, and another 15% use S/R and 15% use BBands, then you end up with about 80% of the market, when they all agree, when those signals agree then you have an 80% of the market supporting the move (hypothetically mind you). If you use only MA you may only have 25% of the market behind a move, or behind a s/r line. Which one do you think will be stronger.

  4. #4
    Active Member ehenderichs's Avatar
    I understand your point Michael, this also indicates there is a pretty steep learning curve to become a good trader. Each indicator on his own needs some serious study to (fully) understand the what's and how's. Most have multiple configurations and multiple ways they can be used/interpreted. The more I learn about BO trading, the more I realise there is so much more to it than first impressions led me to believe.

  5. #5
    Legendry Member milos's Avatar
    I tried to draw trend line support/resistance levels including pivot points. I hope so it can help you.

    Click image for larger version. 

Name:	Untitled.jpg 
Views:	26 
Size:	17.7 KB 
ID:	5162

  6. #6
    Specialist Member Million Dollar Baby's Avatar
    Quote Originally Posted by Michael Hodges View Post
    Lots of things can be support, any type of analysis, that is why using more than one type of indicator is a good idea. Think about it like this. If 25% of the market uses MA's, and 18% use stochastic, and 18% use MACD, and another 15% use S/R and 15% use BBands, then you end up with about 80% of the market, when they all agree, when those signals agree then you have an 80% of the market supporting the move (hypothetically mind you). If you use only MA you may only have 25% of the market behind a move, or behind a s/r line. Which one do you think will be stronger.
    Excellent point.
    More indicators agree, higher chances of success.

  7. #7
    Legendry Member willyw's Avatar
    MOre confirmation = higher confidence/chances

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3