hello vahid. I have been trying to learn how to draw Support and resistance lines like you have been doing. For the most part i know how to draw them but there are times when i end up with what seems like too many lines on my chart. I don't know if they are necessary or not. What advice or what are some things to look for when drawing these lines? And when the lines have been voilated at what point do you say okay, since it broke i don't look at it anymore. Thanks

Hi,

You should plot the most visible support and resistance lines. You should shift to line chart and zoom out to see the most visible lines. Then you should shift to candlestick and wait for the breakout. It means a candle should close above the resistance or below the support.

Thanks for the prompt response vahid. My next question is about take profit levels. How do you come up with the levels. I understand R:R but how do you determine where you should be taking profit. I mean do you say okay if price rises to the middle bollinger band i will set TP there and then to upper band anothere take proftil level or is it just strictly R:R. So let say you risk 82 so take protit 1 will be 82 etc.... based on 1:1. Thanks

Usually it is the stop loss that determines the take profile if we want to follow any of the R/R systems. However, sometimes there is a support or resistance in front of the price and so we have have a different target. It depends on the case and trade setup.