Drawing Support & Resistance lines

G

gobatman2001

Active Member
#1
#1
Hi!

I would be grateful if someone could please guide on drawing support & resistance lines on charts where there is a lot of noise. A few examples would be much appreciated.

Also, does one draw the lines on the daily charts or weekly charts?

The reason why I am asking is because on some of the daily charts, it takes some doing to identify support & resistance levels.

Please do advise ...

Thanks & regards,
Amit
 
B

bhatia_ash

New Member
#2
#2
gobatman2001 said:
Hi!

I would be grateful if someone could please guide on drawing support & resistance lines on charts where there is a lot of noise. A few examples would be much appreciated.

Also, does one draw the lines on the daily charts or weekly charts?

The reason why I am asking is because on some of the daily charts, it takes some doing to identify support & resistance levels.

Please do advise ...

Thanks & regards,
Amit
Click to expand...
Hi,

The general rule that I follow is that if there is a lot of noise on the chart and the chart does not make sense... you are looking at the wrong time-frame.

Choosing the correct time-frame is one of the most important and most neglected decisions in technical analysis. You should look at things like, when a break of a level happens, how often is it a false break in a given time-frame, if you see loads of false breaks, chances are, you need a better time-frame.

Weekly levels are always going to be more important than dailies, daily more important than 60 mins and so on..

Hope this helped.

AB
http://marketsindia.blogspot.com
 
A

alsaidan

New Member
#3
#3
gobatman2001 said:
Hi!

I would be grateful if someone could please guide on drawing support & resistance lines on charts where there is a lot of noise. A few examples would be much appreciated.

Also, does one draw the lines on the daily charts or weekly charts?

The reason why I am asking is because on some of the daily charts, it takes some doing to identify support & resistance levels.

Please do advise ...

Thanks & regards,
Amit
Click to expand...
Hi!:)

Make it easier using AlphOmega Pivots Res&Supp >>parameters 3 and 4 (for both daily and weekly charts), you may also try line chart instead of bars or candle sticks.

Good luck
 
Last edited:
G

gobatman2001

Active Member
#5
#5
bhatia_ash said:
Hi,

The general rule that I follow is that if there is a lot of noise on the chart and the chart does not make sense... you are looking at the wrong time-frame.

Choosing the correct time-frame is one of the most important and most neglected decisions in technical analysis. You should look at things like, when a break of a level happens, how often is it a false break in a given time-frame, if you see loads of false breaks, chances are, you need a better time-frame.

Weekly levels are always going to be more important than dailies, daily more important than 60 mins and so on..

Hope this helped.

AB
http://marketsindia.blogspot.com
Click to expand...
Hi!

Thanks a lot for your reply.

Am attaching a chart of Alok Textiles (NSE Symbol = ALOKTEXT). I would be grateful if you could please draw the resistance lines & upload the same for me.

Thanks & regards,
Amit
 

Attachments

A

amaren

Guest
#7
#7
can any one please (may be alsaidan) explain what is "AlphOmega Pivots Res&Supp", and how to use them. thanks
 
B

bhatia_ash

New Member
#8
#8
gobatman2001 said:
Hi!

Thanks a lot for your reply.

Am attaching a chart of Alok Textiles (NSE Symbol = ALOKTEXT). I would be grateful if you could please draw the resistance lines & upload the same for me.

Thanks & regards,
Amit
Click to expand...
Hi,
I am attaching the chart as per my understanding, others may not look at it in the same way.. but here goes anyways..

Regards,

A.B
http://marketsindia.blogspot.com

P.s: As i said earlier, I first looked at the weekly chart to draw the levels, and then the trend channel on the dailies..
 

Attachments

K

kuldeep49

Member
#9
#9
I found that whenever there is a lot of noise in the chart, it is better to use the line chart for drawing support/resistance lines. I've attached the chart of Alok Industries as an example. Let me have your comments.
Kuldeep :)
 

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