support and resistance lines will not improve your trading simply because they are only guidelines, they are only the macro, and they surely help you understand better the big image, before entering to a smaller resolution (micro) to make the right trade entry decision, which should be calculated by timing, price, the micro movements between buyer and sellers, which can only be seen by very easy-to-read and stable volume flow platform, and when all stars arranged together in straight line you hit the Buy or Sell button.
About our Support and Resistance Lines (S/R Lines)
Before going further on support and resistance lines or supply and demand areas you should understand that they are mostly based on a time-based bars chart.
A “word” about Time-Based bars
- With a time based bars, the best is to watch what everybody watch… 2 minutes/ 5/10/15/30/60/daily/weekly.
- For better understanding areas of supply and demand, look from the biggest time frame “macro”(e.g weekly or daily) to micro (2/5/10 minutes bars).
- We recommend those because they known by most of the traders.
What is S/R Lines?
- These are Support and Resistance lines, simple as that.
- You can use them to understand better what ALL TRADERS sees on a specific instrument you watch.
- When you know what others see on their chart, with a color variation which tells you how each line is ranked by others, it gives you an edge when trading together with VolFlow’s signals –VolBars/VolSign.
- the S/R Lines works on any time frame resolution and recalculated on every new bar on the VolChart.
- The most valued lines are the “fresh” ones (virgins)
- If new support line “born” it colored with GREY(7) as a most valued line.
- Then if market uses the line it turns Pink(6), then if it used again it turns Blue(5) and so on.
- Red (lowest ranked – higher possibility to break the line)
- Orange (brown is not clear enough over a dark background)
- Grey (highest ranked – lower possibility to break the line)
How it looks on VolChart?
- The number near every line is the price.
- The number in the brackets represent how many times the line is tested.
- The text format is: the “Price(Tests Counter)”, for example: