Hamid Muhammad
Recruit
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- 12
Its funny again.
Hamid Muhammad said he received feed back, but I haven'g got any comment on my first calculation spread sheet that I sent to you.
Also there are too many support and resistance lines, so very confused what lines to use.
With respect to the support and resistance lines, that was also my source of confusion in the beginning. But, if you examine the spreadsheet carefully I think you'll figure it out. You really don't need to plot all those lines on your chart. I think at that most 4 lines should do it. You are interested in the support and resistance levels closest to the current spot price. The strike levels on the spreadsheet should be viewed as the "center of gravity" for your chart. In other words, if the current price of EUR/USD is 1.3010, then as shown on the spreadsheet 1.3000 is your "center of gravity", that is the area of focus. So, you would chart the support/resistance levels indicated for the 1.3000 region. Of course, sometimes EUR/USD will break out. If it does that then you just need to plot on your chart the levels for the new center of gravity.
Let's say in my example, EUR/USD surges through resistance which might have been at 1.3017. Now it is trading up at 1.3060. Well, in that case you switch over to the 1.3050 level in your chart to gain some visibility into the support and resistance levels in this zone.
Let me try to give you a more concrete example, because this happened yesterday and I banked some money using the levels from the spreadsheet. Here's a chart I was using yesterday:
In this chart, EUR/USD was trading around 1.3000. I plotted the indicated support level from the spreadsheet with EUR/USD in the 1.3000 range. That level was 1.2994 and is the white horizontal line on the bottom. When, I saw EUR/USD fall to that level I bought EUR/USD on the belief that 1.2994 would hold as support. That is exactly what it did. So, this was indeed an "important level". This was my second trade using the levels from the spreadsheet. Again, it returned more than the cost of the spreadsheet.