Magic Line Support and Resistance

 

WHAT IS SUPPORT AND RESISTANCE

• Support means a barrier that stop the market from going down. Support is located at the bottom.
• Resistance means an obstacle that stop the market from rising up. Resistance is located at the top. 
• Strong support and resistance are support and resistance that are difficult to pass/penetrate. 
• Support and resistance can consist of various types of lines and indicators.

Support and Resistance

SBR AND RBS

• SBR = Support become Resistance 

If the price falls below a support level, that level will become resistance.

• RBS = Resistance become Support 

If the price rises above a resistance level, it will often become support. 

SBR and RBS

KNOW THE TREND 

Trend in the Support and Resistance Magic Line is divided into 3 types.

1. The Uptrend
2. The Downtrend
3. The Weaktrend

MT4 SETTINGS TO DETERMINE TREND

• Bollinger Band Indicator

1. Parameter - Default Setting

    Style - GREEN

2. Visualization -Tick Daily Only

• Moving Average Indicator

1. Period - 7

    MA Method -Simple

    Apply to - Close

    Style - RED

2. Period - 7

    MA Method -Simple

    Apply to - Open

    Style - BLUE

3. Visualization - Tick Daily Only

The Settings

DETERMINE THE UPTREND 

The condition :-

1. Candlestick must be ABOVE the.. 

- MID BOLLINGER BAND 

- EMA7 CLOSE DAN EMA7 OPEN 

The Uptrend

DETERMINE THE DOWNTREND

The condition :-

1. Candlestick must be BELOW the.. 

- MID BOLLINGER BAND 

- EMA7 CLOSE DAN EMA7 OPEN 

The Downtrend

DETERMINE THE WEAKTREND 

The condition :- 

1. Candlestick must the be at.. 

BELOW - MID BOLLINGER BAND 

ABOVE - EMA7 CLOSE DAN EMA7 OPEN

 

or 

ABOVE - MID BOLLINGER BAND 

BELOW - EMA7 CLOSE DAN EMA7 OPEN 

The Weaktrend

MARKING THE MAGIC LINE 

1. At H1 timeframe, do marking for reference when trading at lower timeframe. (example: scalping) 
2. Mark CANDLESTICK 5 days before trading day. 
3. Mark the HIGH SHADOW and HIGH BODY 5 days before trading days. 
4. Mark also LOW SHADOW and LOW BODY 5 days before trading.

MAGIC LINE SOP 

 

1. Open up Daily Chart and determine the current Trend of each currency pairs you want to enter. 
2. Mark High and Low 5 days before trading day. 
3. Do entry according to the Trend. 
4. Make sure all your entry are following the money management that you set up for example 1:1 ratio or 2:1 profit loss ratio. 
5. Think about the loss that you are willing to take before entering the market if the market change direction.

Marking and Entry

• These are some of the marking that are done from 5 days before. 
• All high and low , support and resistance area. 
• In the RED circle area is the ideal entry point. 
• Market can 't penetrate previous resistances so market may go down. 
• Stop loss can be put above BLUE arrow area zone since it may be SBR area where market touch and go down. 
• Follow profit loss ratio money management to set up take profit and stop loss point.

CONCLUSION

NOTHING MUCH TO SAY 

Ask yourself or think inside your mind... 

1. What are the setup for your entry. 
2. Where is the suitable Stop Loss point. 
3. How much are you willing to loss from your equity if the market does not move like you want. (We are not Market Mover) 
4. Keep in mind that there will be another chance to entry and get PROFIT if you loss but not if you margin call or MC. 

THINK OF LOSS AND PROFIT WILL COME SOON

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