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Wednesday, January 18, 2012

Drawing levels in a non-arbitrary way #FX #trading

Here is how we begin with a daily EURUSD chart

Click chart(s) to enlarge

In the beginning.. (LMAO)

EURUSD with daily "levels" added

EURUSD with h4 levels added

Now that's as far as I go with level indications here but this same technique can be used on any all time frames.. I do use it to indicate weekly and monthly levels. It can be used on any time frame but of course the overall prevailing trend makes a big difference too so don't get caught depending on a m5 level being support / resistance unless you are concentrating on trading with the current trend direction or scalping.

Finally here is what our h4 EURUSD chart looks like zoomed in and with candles..

Just for grins here is an m30 chart with candles

Comments are more than welcome!

Good luck in all your trading endeavours!


1 comment:

  1. It's very interesting method of drawing lines;) I'm working on improving your system as you explained. Thanx a lot!