​FREE

Get The Ultimate Guide to Price Action Trading

  • ​How to decode what the markets are telling you so you can identify high probability trading setups—consistently and profitably
  • ​How to identify hidden strength and weakness in the markets so you can “predict” market reversals before the crowd
  • ​A simple trading strategy that allows you to profit in bull & bear markets (without any indicators)
__CONFIG_colors_palette__{"active_palette":0,"config":{"colors":{"62516":{"name":"Main Accent","parent":-1}},"gradients":[]},"palettes":[{"name":"Default Palette","value":{"colors":{"62516":{"val":"var(--tcb-color-0)","hsl":{"h":20,"s":0.99,"l":0.01}}},"gradients":[]}}]}__CONFIG_colors_palette__
​Yes, Give it to me

Are Support & Resistance Random Lines On Your Chart? 

 February 19, 2015

By  Rayner

Last Updated on

In this simple experiment, I will show you how support & resistance may simply be random lines on your chart.

Feel free to try out this little experiment yourself. As always, comments are welcomed and encouraged. Cheers!

  • Thanks Rayner for your experiment.
    This idea leads me to think of the problems some Price action traders using custom horizontal support/resistant lines that lines they draw are not significant enough which make losing trades.
    Can’t agree more with you about only large TF support/resistant lines are significant.

    • Hey Phum!

      You’re most welcome. I can’t comment much on how price action traders draw their SR, but to be profitable in trading is much more than simply SR. There’s risk management, position sizing, exits all to take into consideration as well.

      Rayner

  • Hi Rayner, I would agree with you. We should not draw too many lines and not go back too far into the past. These lines should jump at you as very obvious especially in relation to current market price.

  • Hi Rayner

    was just reading your book and followed the link where you are drawing random trendlines, showing how they can act like support resistance. I guess these random trendlines work well on short term timelines like 5 min, 15min, 1h. But if you draw them on monthly or weekly, I guess you dont get so many hits, or what you think? Do you think if weekly/monthly SR lines are acting as important places if you trading on daily charts?

    • Hi Janek,

      I believe SR levels on the weekly and monthly has more significance, reason being because the whole world watches them.

      But then again, if i were to do the experiment on the weekly and monthly, i believe the results will be similar as well. In that they appear to be random.

      You can try it out yourself and let me know what you think 😀

      Rayner

  • If you take major monthly swings and use ICT order blocks with wicks and bodies and use the major swings you will see very good support and resistance on daily, 4hr and 1hr charts. Has worked for me for years. I go back 20 years on my charts the key is the monthly swings and change of major trends.

  • {"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
    >