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Chart Analysis

How do you determine the strength of support and resistance zones on your charts?

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Zusammenfassung der Redaktion

  • Volume indicators show the trading activity at different price levels and can indicate the strength of support or resistance zones.
  • Candlestick patterns, such as pin bars or engulfing candles, at a specific price level can signal the robustness of a support or resistance area.
  • The frequency and duration that a price has bounced off a support or resistance level can indicate its significance.
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mumagician 16 Posts
So, been charting for some time now, right? Just curious, how do you fine folks figure out the strength of those support and resistance zones on your charts? Got any tips or tricks up your sleeves? My personal approach is a bit hit or miss. I draw a horizontal line where the price has touched multiple times but it’s not always accurate. Maybe you guys have a more solid method?
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anna87 14 Posts
Absolutely! By incorporating volume data, one can gain extra insight. When a support or resistance level is associated with high volume, it generally indicates a stronger level. Just a thought to add to the mix! What about candlestick patterns, do you use them in your method?
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michel35 22 Posts
Volume data? Not entirely convinced about its relevance. Sometimes it's misleading. Thoughts anyone?
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thetawhiz 18 Posts
Maybe we're overthinking it. Have we considered asking the charts nicely?
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Surely, back-testing plays a part in this right? Anyone experimented with it?
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What about using Fibonacci retracement levels? Isn't that a common tool to assess the strength of S&R zones?
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Guess there are plenty of ways to skin this cat, right? All about finding what works for you.
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nina19 18 Posts
Alright, what do you guys think about utilizing market psychology?
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Diving into historical price action could shed some light, don't you think? Looking at past reactions to these zones might give clues on future behavior.
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linus50 15 Posts
Ever thought of checking the trend's momentum as well? Could be a game changer.
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