Setting support/resistance levels

[u0362565]

Hi all, just wondering whether open/closing prices are more important for finding support/resistance levels or are the wicks as important? Depending on the market the high/lows of a period can make a considerable difference to where you might consider a stop loss location for example.

Thanks for the advice

[Ozquant]

20 hours ago, u0362565 said:

Hi all, just wondering whether open/closing prices are more important for finding support/resistance levels or are the wicks as important? Depending on the market the high/lows of a period can make a considerable difference to where you might consider a stop loss location for example.

Thanks for the advice

How long is a piece of string  ?   Generally i put stops behind lows and highs not open or close  

[u0362565]

28 minutes ago, Ozquant said:

How long is a piece of string  ?   Generally i put stops behind lows and highs not open or close  

Good point.. but yes I think that does make more sense as the open/close is not so significant. 

[Caseynotes]

1 hour ago, u0362565 said:

Good point.. but yes I think that does make more sense as the open/close is not so significant. 

The high and low show exactly where the opposition stepped in and started to overpower the trend and there may well be unfilled orders still waiting there should price return. Also though the daily close also has special significance as it is noted by a lot of bigger traders.