My favorite kind of analysis starts on the right side of the chart!
A Primer on Support and Resistance
- Thread starter lcranston
- Start date
You mean once the trend has started - I don`t see how you are able to judge or justify that say to any degree.
You mean once the trend has started - I don`t see how you are able to judge or justify that saying to any degree.
I was partially joking. Many marked up charts show the entire move somewhere in the middle of the chart. To me, a chart that shows the tentative support and resistance areas by looking at the most recent highs and lows with indicated support and resistance area lines drawn to the right edge of the paper have more credibility. Charts that show an entry point on the very most right bar with stop and exit point, have the most credibility.
With a marked chart based on the most recent support and resistance information, I can develop a plan to trade accordingly to my overall assessment of the trading environment. For example, I may have a direction bias based on other analysis. I may look to short at resistance but not buy at support. I may decide to short on a break through support, but not buy a break through resistance. Obviously a breakout is a very strong technical signal and will cause me to reassess any bias I may have before entering a new trade in that instrument.
For me, there is frequent reassessing of a trade as more price bars are drawn. Tick action and money flows into and out of risk-based assets are also considered in my frequently unpdated assessments.
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OK He is right; that top chart , nice chart , but top chart-1st chart was not monthly charts .No offence intended ;but any student of monthly candle charts will tend to recognize monthly charts
Nice top chart regardless.
One in a million chance it was monthly chart if a huge time frame- but not likely @ all.Ok try this Monthly Chart Cycle High just to prove my Point - One to watch Bro - I think that even you would agree with this fine example of a trade set up ---- A Market Update on the Gbpusd Pair Spot Price 1.3828 I have over ran the Low Support Level for same strange reason - Present Support Level Should have been Expected at 1.3765 carrying any overbought value to the Lower Support Level at 1.3723 "My attention has just this minute been woke up" - So there has been A Price Adjustment - By this I mean A Charge in Price Direction - The Derivative is now at Uptrend Phase - Towards Monthly Chart Cycle Highs at 1.5816 : An Added Note for the More Advanced Trader among you : There are 2 Resistance Levels to watch out for at 1.4266 & 1.4838 Lets see if I`m right - This is A Breakout Trend towards New Highs at 1.5816 So should prove of A Straight Forward Trend without to much difficulty.--
Please plot out the relevant Support Level or Resistance Levels as mentioned I think that you will find that this set-up will work for yer you have plenty of time.
Continues below - “ As in there has been A Change In Price Direction Mate over the Monthly Chart Time Frame. Try looking at the Bigger Picture when establishing that A Support or Resistance Area actually exists - And not just a little Rangeing Channel of interfere means. This will never support your trading biases.”
Please plot out the relevant Support Level or Resistance Levels as mentioned I think that you will find that this set-up will work for yer you have plenty of time.
Continues below - “ As in there has been A Change In Price Direction Mate over the Monthly Chart Time Frame. Try looking at the Bigger Picture when establishing that A Support or Resistance Area actually exists - And not just a little Rangeing Channel of interfere means. This will never support your trading biases.”
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