How to use Support and Resistance Effectively - page 34
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Below is a chart of the Cad.
We are in downtrend.
Price broke through the 0500 level and retested it as Anna showed earlier.
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?
Yeah, it's a pain in the ass instrument at times. Buk won't have it on his chart platform LOL, but I'll give it the time of day ever now & again.
That one simply would have gone A.W.O.L Steve, & yes, that punch back thru invalidated it from my perspective.
The observations & trend counts start over from scratch again.
hey, thank you bubble,
For how long have you been trading this concept?
I mean 2-3 month are not a guarantee that it'll work in future. Did you every try other concepts, for example playing volatility like Open Range Breakout or sth..
Why don't you combine your system with indicators like stochastic or so?
Maybe your system works really fine right now, but don't you think that it'll perform even better with filters? Or do you think that you'll miss to many signals?
Another question is: Why do you always go from shorter to longer timeframe? In every book it's said, that you should move from the big to the small picture?
And why are you ignoring trendlines? It's one of the obvioust forms of technical analysis, that works? Why don't you use it?
Like to hear from you.
Greetings
-mike
hey, thank you bubble,
For how long have you been trading this concept?
I mean 2-3 month are not a guarantee that it'll work in future. Did you every try other concepts, for example playing volatility like Open Range Breakout or sth..
Why don't you combine your system with indicators like stochastic or so?
Maybe your system works really fine right now, but don't you think that it'll perform even better with filters? Or do you think that you'll miss to many signals?
Another question is: Why do you always go from shorter to longer timeframe? In every book it's said, that you should move from the big to the small picture?
And why are you ignoring trendlines? It's one of the obvioust forms of technical analysis, that works? Why don't you use it?
Like to hear from you.
Greetings
-mikeTrading only using sup/res I believe is the simplest, most accurate and profitable way to trade...I have used/tested just about every indicator out there and I find that the price charts alone give me all I need.
Indicators are based on price anyway, so i have found that they lag behind price...Using bubbles trading philosophy you can enter near the top or bottom of a move which gives you the greatest reward with the lowest risk...
True sup/res as defined by bubble in this thread is a known level that price has already reacted to...I know that indicators look neat and they are a temptation(I still occasionally download a new one to check it)to use to generate signals but I urge you to carefully read this thread from the beginning...you will not be disappointed and it will make your trading simpler and more profitable.
Hi Bubble
Thank a lot ..of course, sorry... no indicators in the chart.
Please take a look .....I hope my chart is OK but it is not real trade , isnt very good trade ...it was on 15 min and in this case was difficult for me set turning point very close to RBS...I set Turning point on the base 1 min chart at 161.29 and used classic teaching about change trend (Prings theory applied on 1 min chart) and I think 161.29 is too far from RBS in this case ( or target profit is too close from turning point) ...Please if you are not too busy write me your opinion. Thank you a lot for teaching,thread and particularly your patience
Peter
sorry my picture somwhere disappear
gbpyen short trade
Hi Bubble,
I think I finally caught a good S&R set up. We have lower highs and lower lows. There is a retest of the range @ 238.94 as SBR. Price action turned down and I entered @ 238.65. My entry may have been a little late but I wanted to confirm the down move before entering. Profit target was 239.10. Plus +55 pips. How was that trade set up?
Dave
hey dave, i think the entry wasn't to late at all. This was the only valid second retest. Regarding money management i would say that you should take only have your profits off and let the other part run (maybe with a trailing stop) or by measuring the previous downleg.
Greets
Hi Gang,
the end of another exciting week, the start of another weekend studying old charts and reading as much as I can find about trading using S / R and tech anaysis.
Thanks again for the assistance Bubble and to everyone else who contributes to this thread.
Enjoy your weekend folks, the Sun is shining here in the UK, so I will.
Two possible scenarios, one currency pair.
Hi Bubble,
I'd appreciate it if you would have a look at these charts when you get time.
They are the four hour and one hour versions of the same currency pair. Inexperienced as I am, I can see two entirely different interpretations, both of which seem supported by S/R analysis and both of which seem to be supported by htf...
It's entirely possible I'm off base in some fashion so I thought I'd seek your opinion.
It's probably obvious, but the green horizontal line on the 4 hr chart is the same green line on the 1 hr chart. I've drawn it for easy reference to the second scenario (the one I see on the 1 hr chart).
Thanks for any input.
Cheers
cobby,
1. Why don't you enter on the first pullback to RBS/SBR?
The first test of s/r if it holds gives confirmation of the level being strong eg if the level is support which is where buyers would normally look to enter as the price is deemed low enough to buy, at this point sellers will try to resist the buyers the bounce shows that the buyers are taking control.
So once we have this information we can plan accordingly.
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?
The answer to that is ,there is no definable amount except to say that so long as it doesnt make a new high before the second test then its ok to enter.
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?
Price is all we need and thats all i use.
Try it for yourself and lets see if you can train yourself in one week and become a profitable trader if you can then i applaud you, any more questions feel free to ask .
bubbleHi bubble,
I am trying to learn trading for past 18 months with no luck. I win some trade and lose some. I have spent thousands of dollars on quiet few courses including my last one which is about Support and Resistance but with some indicators. After all these months I come to this conclusion the only one way to learn treading (for long term) is with Support and Resistance and price action. This method needs a lot of practice but you will be rewarded at the end. I hope am right this final time.
I came cross your thread about month ago. I have been reading it since then. This tread is light at the end of tunnel. I fail to understand why you are doing this hard work especially when you are so busy. The only explanation I came up with is that you are a good man from your hart and you fell good helping people. May God reward you for that.
Just two question for now.
I went over the whole thread 4 times and I have great difficulty to finding turning point and whole concept of turning point. Please if you can answer following.
1. How do we find the turning point?
2. When we do find a turning point is this point is our new S/R or we use historical s/r close to turning point for entry.
Again thanks for all this good work.