When it comes to drawing Support and Resistance (S&R) levels, using daily and weekly timeframes together is generally considered the most robust and professional approach. Neither one is exclusively “best” on its own; rather, they serve different, complementary purposes.

Here’s why and how to use them:

Weekly Timeframe (W1) – For Identifying Key Long-Term Levels

• Why it’s crucial: The weekly chart is excellent for identifying the most significant, long-term support and resistance levels. These levels have been respected by the market over extended periods (weeks, months, or even years) because they reflect the collective decisions of a very large number of market participants, including major institutions.

• What you get: S&R drawn on the weekly chart represents major turning points, strong supply and demand zones, and historical price barriers that carry substantial weight. When price approaches these levels, a significant reaction is often expected. They are the “big picture” levels.

• Analogy: Think of these as the major highways or city limits on a map. They dictate the broad movements and critical junctures.

Daily Timeframe (D1) – For Refining and Identifying Near-Term Levels

• Why it’s crucial: After identifying the major weekly levels, you “zoom in” to the daily chart. Here, you can pinpoint the exact points where price reacted to those weekly levels, and also identify additional, more recent S&R levels that might not be visible or as prominent on the weekly chart. These “near-term” daily levels are still very significant for guiding current price action.

• What you get: The daily chart allows for more precise drawing of the weekly levels (adjusting them slightly to align with exact daily closes/wicks if needed) and helps you find relevant levels that have formed more recently, perhaps within the last few weeks or months. These levels are critical for managing swing trades or even anticipating intraday reactions.

• Analogy: These are the main streets and important intersections within those major highway systems. They guide local traffic and indicate more immediate turning points.

The Synergistic Approach (How to Combine Them):

The most effective strategy is to use a top-down approach:

1. Start on the Weekly Chart: Zoom out and identify the most obvious, significant swing highs and swing lows. Draw your primary, long-term support and resistance lines/zones here.

2. Move to the Daily Chart: With your weekly levels already drawn, switch to the daily timeframe.

   • Refine: Adjust your weekly lines slightly if a more precise touch point becomes evident on the daily chart. Remember, S&R are often zones, not exact lines.

   • Add Near-Term Levels: Identify and draw any new, significant support and resistance levels that have formed more recently on the daily chart and are not prominent on the weekly. These are often within the range of the current weekly candle or recent weekly price action.

3. Prioritize: Understand that weekly S&R levels generally carry more weight and are harder for price to break than daily S&R levels. If a daily level aligns perfectly with a weekly level, that area becomes extremely strong.

By combining the long-term perspective of the weekly chart with the more detailed view of the daily chart, you create a comprehensive map of key price levels. This multi-timeframe analysis helps you understand the broader market context while still identifying relevant levels for your tactical trading decisions.