I'm a newbie here learning about support and resistance! can someone let me know if the S/L is correct? i looked at the 4H 1H and 30min charts and the purple line is where i anticipated a sell if it drops under the support level...could be wrong but any advice would be appreciated :)
bro...according to elliot wave theory it might create a correction wave... so it ll gd for scalping method..
dont hold for long...nd dont expect a great profit...coz it might create a retracement..
rather the trend is downtrend..coz of marubozu candles it formed...
JMT_Forex
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We can't see enough of the graph here to tell you, also, dont be the first to enter a trade, it might go above that line as a fake-out then plummet, patience is key, if it goes above the purple line, wait for it pull back down to the line, if it rejects that, it should be safe to buy, if it goes below the purple line, wait for it to pull back up to the line, if it fails to break through, then you can sell
JMT_Forex
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there has been a massive drop today, so it will consolidate / contract before giving any clues to where it might go, these areas should be avoided before entering the trade
fadia89
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@joetomo123, Thanks for your advice! when you say you cant see enough is that because its on a 1 hour TF?
Currently its going up so I assume now would be a good time to buy? how long do you wait before making a decision? would u use the 30min TF or 1hr TF and wait for the candle to close to decide?
JMT_Forex
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@fadia89, We can only see till 6am, so we cant see any previous support or resistance levels. 1hr time frame is fine for the photo it just needs zooming out a bit so we can see how the graph correlates to your idea. I usually use the 1 minute for an entry point. 4hr and Day time frame is good for looking at overall trend, but i find i use the 1hr most as i day trade. But i always use the 4hr for conformation. If you look at some of my ideas on my profile you might get a better concept
fadia89
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@joetomo123, Ah okay I get what you mean with the screenshot! I'm looking at doing day trades too, i thought using the support/resistance from the 4hr TF would be useful too to review whats been happening.
So would you suggest I use 1h TF when reviewing when it hits the S/R level then 1min TF to see whcih direction it goes once a 1hr TF closes? I will definitely check out your ideas. Im all for learning!!
dont hold for long...nd dont expect a great profit...coz it might create a retracement..
rather the trend is downtrend..coz of marubozu candles it formed...