Weekly Chart Sharing Thread (Week 5 April, 2015)

What's your method of plotting S/R?

I quickly scan my chart and look for the bodies of candles bouncing from the same area multiple times. Switching from a candle chart to a line chart (using Alt+3 and Alt+2 in MT4/5) is really handy for this. To me, if the S/R is not obvious I won’t plot/trade from it. I like to ask myself – could a 5 year old point out that S/R area?

I also consider wick bounces as extra confirmation of an S/R area, but I will never plot S/R based only on wick bounces. It should be noted that these S/R areas often occur at ‘psychological price levels’ such as 2.0000, 98.50 or 1.5000.

Here are a couple of examples of my S/R levels at the moment:

How do you distinguish between minor and major S/R, and do you use/treat them differently?

I only plot major, obvious levels. I don’t trade from minor ones. I sometimes use the minor ones when managing a trade though.

How far do you scroll back when plotting S/R?

I used to go 1-2 years back, but not anymore. I think most recent data is more important when plotting S/R. If I can’t plot S/R on recent data, I’ll just leave that pair alone until we get some recent bounces to plot some clear S/R areas from.

Do you have any links to good S/R related articles, videos or threads?

Reading material: This, this and maybe this

Videos: This guy does good videos if you want to compare S/R areas with what he has.

/r/Forex Thread