Student's Question:

What time scale do you recommend to set up support /resistance for day trading?


Power Course Instructor's Response:

In our opinion, whether Day Trading or Position Trading, the best procedure to find a pair to trade (and identify significant levels of Support and Resistance) is to check the Daily chart to locate a strong trend in either direction.

Sometimes Day Traders will resist checking a Daily chart. We find, however, that no matter what your trading style, being aware of the prevailing trend that is influencing the pair certainly cannot hurt.

Support and Resistance levels that appear on a Daily chart, for example, will have more significance than those that appear on a minute chart. Also, if you see the same S/R levels that appear on a Daily chart or a 4 hour chart also making an appearance on, say, a 15 minute chart, those levels are to be respected as they are quite strong and will have an influence on how the trade plays out.

Using Multiple Time Frames to identify the trend, time an entry and identify levels of Support and Resistance is a solid way to analyze a currency pair.

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