S/R trading

[jakolinko]

Hello everyone,

Before I begin, I want to tell you that I've been studying S/R for a quite some time. I know basics, more or less. So the thing which worries me the most is, how do you know which way it's going to go (up or down) when it hits support and resistance, is it good to use it with MACD or RSI?. Are there any traders using only S/R, trends etc... The basic simple charts without 1000 lines on them where you cannot read a thing? Are you profitable with only S/R? I've been watching some videos/tutorials on youtube, and most of the forex traders say they only use S/R. Is it possible to learn them to "perfection"?

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[Azima85]

This is a very interesting topic. When I started learning I tried to fit as many indicators as possible on the chart as I thought this would help. Later, found out that it harmed me more than I thought. Trying to read so many indicators leads to confusion rather than a useful conclusion. So, I started focusing more on S/R levels. I would say this made my life much easier, I still use few indicators such as RSI and MACD but just to confirm my hypothesis, and not to build one based on them. I haven't perfected yet S/R trading, but so far, I think it is the best way to go.

[cryptoking1981]

On trading view you can save multiple charts.

A good idea is to have all the indicators you use on different charts.

Ie have one chart with only S/R, have another with the RSI/MACD and S/R

maybe a third with other popular indicators such as Bollinger bands, moving averages (sma/ema's etc),

I think understanding S/R is key to profitable trading too.


subscribe to the chartguys on youtube ( you'll understand him after a few months), his main trading ideas rely on S/R.

[adaseb]

Basically Support and Resistance or Demand/Supply are very good indicators but you can't use them purely alone.

You need to understand what the higher timeframes (Weekly/Daily) are telling you and use some other indicator to help you get into a trade.

Keep in mind it won't always work 100%, hence the reason why you need a good risk management and a good risk/reward.

If you are risking $1000 just to make $50, then its bad risk management. You need to risk $50 to make $1000. And after hundreds of trades you will always be in the lead.

[jakolinko]

This is a very interesting topic. When I started learning I tried to fit as many indicators as possible on the chart as I thought this would help. Later, found out that it harmed me more than I thought. Trying to read so many indicators leads to confusion rather than a useful conclusion. So, I started focusing more on S/R levels. I would say this made my life much easier, I still use few indicators such as RSI and MACD but just to confirm my hypothesis, and not to build one based on them. I haven't perfected yet S/R trading, but so far, I think it is the best way to go.

That's the same thing that happened to me. Firstly, when I started I had my charts filled with Fibonacci, Elliott, Ichimoku... It was impossible to read anything from them (I'm not saying that these indicators are not good - they just dont fit me very well)

This is mostly how I deal with S/R;

1. I go from higer to lower time frame - weakly to 4h mostly
2. I use it with MACD
3. EMAs; 8 and 30
 
- What do you think guys, is it better to wait for confirmation of the up or downtrend after it touched the S/R, like reading through candles and stuff... I still see S/R like a good indicator, but some parts are hard to understand, maybe it's just lack of experience and intuition.

[cryptoking1981]

I disagree that you can not only use support and resistance by its own..

In fact many successful traders only use S/R for their trading as well as using price action.

I agree It is important to make decisions using different time frames when analysing S/R.

You can learn a lot by looking at a chart with candlesticks ONLY.

Ive come to desicions and was able to analyse more quickly by just looking at a candlestick only chart on occasions.

[damberg]

Hello everyone,

Before I begin, I want to tell you that I've been studying S/R for a quite some time. I know basics, more or less. So the thing which worries me the most is, how do you know which way it's going to go (up or down) when it hits support and resistance, is it good to use it with MACD or RSI?. Are there any traders using only S/R, trends etc... The basic simple charts without 1000 lines on them where you cannot read a thing? Are you profitable with only S/R? I've been watching some videos/tutorials on youtube, and most of the forex traders say they only use S/R. Is it possible to learn them to "perfection"?

As a former futures trader, I can confirm that S/R levels remain profitable in every market I have ever observed. After years of trading I ended with only price, volume and S/R levels. However, I had to try (and deny) lots of indicators before getting to that point. I recommend you using RSI with S/R levels in the beginning, it can teach you a lot .. and hopefully make you some money on the way  

[lushlife]

I don't think so, I find it very hard analyzing the market if I only use S/R,
I find it better if S/R is paired with some Chart Indicators

[jakolinko]

Well, as I said before, every profitable trader I've seen usly mostly only S/R. They keep their charts as simple as possible. I gave it a shot few months back and I liked it. I find it more useful than other indicators.

Can someone recommend me some good literature regarding S/R? I read/watched almost everything I could find, but I need fill up some gaps.

[jakolinko]

Can someone tell me what do you consider as untested level and what do you consider as tested level?

If so, can you provide examples?

Would tested be - when the wick or candle touches the S/R line?

I'm being confused with untested ones, don't seem to understand it quite well.

[damberg]

Can someone tell me what do you consider as untested level and what do you consider as tested level?

If so, can you provide examples?

Would tested be - when the wick or candle touches the S/R line?

I'm being confused with untested ones, don't seem to understand it quite well.

Volume could be your clue here. Tested levels usually attract lots of traders, lots of orders and they are full of volume. On the contrary, untested level seems to have similar volume to a regular trading, sometimes even smaller. Also, be prepared to understand S/R levels as rather dynamic areas than just e.g. an area from BTC0.0048727 to BTC0.0049133.

[wayancrypto]

There are alot of different indicator to use to determine support and resistance, and we not need learn it all. Its enough to use maximum 3 different indicator. The most popular indiactor to predict the trend of market is Moving average and Bolinger Band that easy to understanding. And we should be learn about price pattern that has high accurate in trading.

[beerlover]

Before I begin, I want to tell you that I've been studying S/R for a quite some time. I know basics, more or less. So the thing which worries me the most is, how do you know which way it's going to go (up or down) when it hits support and resistance, is it good to use it with MACD or RSI?. Are there any traders using only S/R, trends etc... The basic simple charts without 1000 lines on them where you cannot read a thing? Are you profitable with only S/R? I've been watching some videos/tutorials on youtube, and most of the forex traders say they only use S/R. Is it possible to learn them to "perfection"?

Support and resistance basically tells you which way the coin should be going by the eyes of the public. That is only helpful to tell you which way others think the price will go, nothing more. Just because people think it will go somewhere doesn't really tell you which way it will go tho, it will still do whatever it wants to without the support or resistance because lets not forget as soon as any coin starts to move on one way most of those support and resistance will change into something else.

If you want to trade according to historical resistance points than you can definitely buy from those prices for example $5.8k is a strong support that I do not think will ever be passed again so if it gets anything remotely close to it than you can buy. However, I do not think it would work on selling points, it would work while buying but while selling it can go up without caring about any resistance at all.

[nydiacaskey01]

If you will just use Support and Resistance when you trade, you might end up losing more money than you expect. Nothing wrong with using multiple tools to check if what you are buying have potential of pumping for the next day or two. Using Over Bought and Over Sold together with Support and Resistance maybe a good idea, then use other tools too like Parabolic SAR to know if system sees a possible rally and signal a Buy or a Sell.

[sedahan13]

So many way to determine support and resistance level of crypto but all of that way is not fully accurate and to avoid loss from wrong prediction we should be have risk management by use stop loss. So in trading activity we should not only have knowledge about technical analysis but also skill of management of risk and money.