CandlesticksHow To: The best way to draw major Support & Resistance in Forex trading. Here's the trick!

1
How To: The best way to draw major Support & Resistance in Forex trading. Here's the trick!


Here is another common question we get in our inbox from time to time: How do I draw Support & Resistance Lines?

The answer is simple. Use a Line Chart! In MT4, the Line Chart tool is accessed by pressing this icon
Open your chart and load up the Weekly or Daily timeframe.
Switch over to the "Line" Chart view.
Draw your Horizontal Support Line at an area where price has bounced.
Zoom out of the chart or scroll back and see if price has bounced off that line in the past. If price has reacted to that area in the past then you have identified a significant area of support!
Repeat the process for Horizontal Resistance.
Be sure to scroll back on the chart to see if price has reacted to these areas in the past.
Once you've finished, your chart should look something like this.
Now you can switch back to Candlesticks.
You can then choose to "fill" in the areas using the Rectangle tool if you would like to have potential reversal Zones instead.
When you've finished creating Zones you can remove the lines you've created.
Don't expect price to immediately react to these lines!

When drawing these lines on the Weekly and Daily charts there's a high chance that price won't react immediately when touching those support and resistance lines and may continue on, so don't try and scalp these areas and expect price to immediately reverse once it touches these horizontal lines you've drawn. Remember, we've just used the line chart to draw these lines and the line chart is based on the close of the candle so price could well and truly continue blasting through these levels for hours before eventually reversing.

Aggressive traders

If you're an aggressive trader you can enter reversal trades right on these lines, but you'll need to use wide stops.

The trick is to be aware when price hits these areas and start looking for reversal trading opportunities from here by loading your chart on the smaller intraday timeframes and enter there.
Are you looking for a Forex broker? FBS cuts spreads by up to 58%. Click here to begin your trading journey, today.
No commissions are earned by Forex-station.


Guide to the "All Averages" Filters (ADXvma, Laguerre etc.) 🆕
Use Fibonacci numbers for indicator settings + How to draw Fibonacci Extensions
An easy trick for drawing Support & Resistance


Re: How To: The best way to draw major Support & Resistance in Forex trading. Here's the trick!

2
Jimmy wrote: Fri Jun 28, 2019 10:33 pm
The trick is to be aware when price hits these areas and start looking for reversal trading opportunities from here by loading your chart on the smaller intraday timeframes and enter there.
Thank you Jimmy,
It is really easy to draw on a line chart, support and resistance than the candlechart.
A very powerful tool.
Great explained :clap:
We create order out of chaos - we trade that order, but sometimes that chaos is out of order, so we WAIT!!! for the order to return - and we trade again. XARD777

Re: How To: The best way to draw major Support & Resistance in Forex trading. Here's the trick!

3
Skyold wrote: Sat Jun 29, 2019 7:03 am

Thank you Jimmy,
It is really easy to draw on a line chart, support and resistance than the candlechart.
A very powerful tool.
Great explained :clap:
Thank you for reading it Sky! Your post makes me happy bro. Try it out on your charts this weekend :)
Are you looking for a Forex broker? FBS cuts spreads by up to 58%. Click here to begin your trading journey, today.
No commissions are earned by Forex-station.


Guide to the "All Averages" Filters (ADXvma, Laguerre etc.) 🆕
Use Fibonacci numbers for indicator settings + How to draw Fibonacci Extensions
An easy trick for drawing Support & Resistance

Re: How To: The best way to draw major Support & Resistance in Forex trading. Here's the trick!

5
dw13 wrote: Fri Jul 05, 2019 1:59 pm a worth reading post. thanks man, for such an informative post, this is what newbies need to read and find in the forums :clap:
Hey D, you're most welcome bro! I'm happy that you liked the article and read through it. Please let others know about this tip too if you feel it might help them out! :)

Have a nice weekend man.
Are you looking for a Forex broker? FBS cuts spreads by up to 58%. Click here to begin your trading journey, today.
No commissions are earned by Forex-station.


Guide to the "All Averages" Filters (ADXvma, Laguerre etc.) 🆕
Use Fibonacci numbers for indicator settings + How to draw Fibonacci Extensions
An easy trick for drawing Support & Resistance




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