How to use Support and Resistance Effectively - page 33
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Steve,
a bit of tricky one this one , initially your analysis is correct , my only concern here is that coming up from the low we have some supports that were taken out during the swing down , which suggest that this trade may be a correction from the swing up from the low even so considering your entry point and your t/p it looks like its turned out ok my own thoughts on this would of been to stand aside.
The eurjpy gave a very good signal this morning with a clearly defined entry with a second retest into its range.
bubbleNice trade there Bubble. If you get time, would you mind posting a chart identifying what significant supports were taken out, so i can learn from this?
Bubble
I watched the action for hours today and was frustrasted not to find an entry. Take GBPUSD, a big move though only a few minor retraces within, not exactly troughs. All the retraces seem to have been over by the next candle.
Can you add some comments about how we should deal with a session like today, when it shoots away ? I guess the clue to check the type of trend (from the beginning of the thread) though I don't understand how this will change our trading activity.
I am thinking that moving down to the 15 or 5 min in this situation will show some entry points clearer.
Fx2007
Bubble
I watched the action for hours today and was frustrasted not to find an entry. Take GBPUSD, a big move though only a few minor retraces within, not exactly troughs. All the retraces seem to have been over by the next candle.
That's trading I'm afraid. The best laid plans & all that
If prices don't play ball & set up within the confines of the particular strategy you're employing at that particular moment, then you aint gonna get positioned. No matter how hard or diligently you watch the market!
Someone else executing via a different method or following an alternative route will undoubtedly have got filled & caught the flow - again, fair enough!
You can't catch every move or prepare for every eventuality.
All youcan do, is ensure when prices click into place according to yourparameters, you're ready & able to take it on.
But even then, you aint gonna catch em all. The markets are a real pain in the ass sometimes.
I am thinking that moving down to the 15 or 5 min in this situation will show some entry points clearer.
I'd like to add something on this comment if I may? I'm not gonna dwell on it & certainly not going to lecture - what folks do with their money & trade accounts is their business!
But - be very, very carefulwhen attempting to execute on small timeframes in FX. If you're an experienced operator with a good platform engine, a very reliable ticker/squawk (market chatter) & pretty good reaction awareness, then you got a head start on the crowd.
This mornings activity is a very good example & ties in with your comment fx2007.
Having an awareness of where the probable lines of engagements were stacked this morning, & more importantly who were defending/watching them would have added a little more confidence to configuring a potential b/o set-up. The "chatter" stood up to the levels for sure & these insights very often do.
The 2 charts highlight bubble's earlier statement re: the lower support & the comments attachment helps tie the levels together.
Now I'm not saying you need this info to trade, nor am I suggesting it's relevant all the time - but quite often (in certain circumstances)... knowledge is power!
However, the longer you remain active & profitable in this business, & the more you remain faithful to a sensible, workable strategy, the more you'll begin to take advantage of those driving prices at certain levels by the very virtue of the fact you're following a well prepared, effectively researched & consistant strategy model.
This thread which bubble has kindly opened is aimed at offering an execution model which is based on sensible analysis with clear defined entry & risk management parameters. More often than not, it also mirrors the activity of those with strong influence on levels & zones.
Funny that
Another one to chalk onto the observation map. Didn't take it personally, but nonetheless, it fits the criteria.
Canadian housing stats out later, which might offer some added spice - but this one is running with the overall long term bearish flows.
Yes Anna,
Been trading that a little of late, but has been a bit of an unpredictable beast recently, but it def looks like it is heading back down to challenge those lows. Needs to break through that 0477 zone eh!
Bubble,
Thanks for the explanation on the Swiss. I have never really considered that before and that will really help in my decision making process now. You often get times when looking at multiple timeframes that you just can't decide for sure where price is going to go. That little tid bit will definitely help, thanks, it all makes sense.
Below is a chart of cable this morning. Would this be a valid setup if price came back down to challenge 0340-50 area again, for a long?
Bubble,
Thanks again for your quick response. Yes, that makes sense to me, just jumping the gun, i must wait for that confirmed HL, HH first.
Nice one on the swissy there, the market isn't always going to give the amazing r/r that you have been getting eh!
I am still in this trade from yest, and would be nice to see that low of yest broken for this to continue on down. The structure is still there so i am holding for now!
Just a quick question about how you draw your s+r lines. Once you have located the general area of s+r, do you just look left and try and fit your line in between as many of the highs and lows of the bars as you can, or are you more focusing on the opens/closes and if so, which do you concentrate on, the open or close?
Steve
Also, just wondering. Did you short that trade as price touched 56 the second time, so just prior to price pulling back for a test of your stoploss?
Bubble,
If i am overposting again then tell me to stop but i am generating more questions that i hope are valid and not wasting your time.
Below is a chart of the Cad. We are in downtrend. Price broke through the 0500 level and retested it as Anna showed earlier. This can be a bit unpredictable at times probably due to its correlation with oil prices. Hope you can see what i am getting at from the chart. The fact that price has pushed through and closed above the 0500 area again, does this invalidate a potential short at the potential HL peak, which is currently at a s+r zone?
We never know whether a trade will work out for sure or not but would this be an example to stay away from given the break of resistance. I am voting for 'Yes' given your recent explanation of the swissy?
Steve
Hi,
bubble, may i ask you some questions?
1. Why don't you enter on the first pullback to RBS/SBR?
2. You say that you only enter after the second pullback, right? So, let's say that there's a first pullback to RBS/SBR after the break of s/r. How much does price have to continue(after the first pullback), before it pulls back to touch r/s a second time?
3. Are you only trading price with s/r? Did it really took you 3 years to recognize that trading only s/r, without that indicator stuff is one of the best "systems"?
I mean this is a very simple concept, which could be trained within one week, which would mean that you could quit you're job after one week learning trading (this concept). I hope you understand me. Or is there more behind trading. If yes, would you be that kind to clear me up?
Thank you very much in advance and thanks for providing such enlightening stuff.
Greetings
-mike