When finding resistance levels..

[Knew 2 4 X]

... How far back do you go to determine the resiistance levels when looking at charts? 3 months ?

[happytree]

Originally Posted by Knew 2 4 X

... How far back do you go to determine the resiistance levels when looking at charts? 3 months ?

Well it just depends. You generally want to start at the longest time frames and go down.

Establish the overall long term trend on the weekly. That will show a couple of years worth of data. Next goto the daily to establish the medium term trend and that should show you a few months. Keep doing this until you get to the timeframe you trade from. The longer term the resistance the more significant it will be. Pretty basic stuff.