How to use Support and Resistance Effectively - page 8

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Hi Bubble,

Eagerly awaiting future installments. I'm a fan of S/R trading but don't practice it currently in my trading. Maybe this will prompt me to start looking into the method. A quick question I have for you:

Do you manually draw out the S/R lines as ranges are established, or do you use one of the S/R indicators that draws them based on pivots? Or do you use both methods?

 

Time Frames

Do you adjust your lines when you back out to a larger time frame and see that it is a little off or do you stick with the 60m.

Thanks again!

 

When you are drawing your support/resistance lines do go by the extreme high or low? Or do you use the close?

When I look at a 1 or 4 hr chart for support, sometimes I notice that there will be several price bars together with long "tails" into previous support...Is this a strong hint of a possible reversal?

Same for resistance...

Also, do you use any pivot sup/res in your trading?

 

Thanks for answering my questions!

I believe that true support/resistance is the way to trade because these are actual prices where price has turned before...Looking forward to more lessons!

 

Hi bubble,

Thanks for your latest posts. Do you think you could be so kind and post some more charts, showing some actual entries and exits? I believe I can determine the S/R levels pretty well but it's not so clear as to how to trade them effectively. I think I can use them very well for exits but not quite so for entries... I just need you to get me on track

If you have a fixed timeline for your lessons in this thread and are going to cover this later, please disregard this post

Thanks very much

 
Malcik:
Hi el cid,

Thanks for this encouraging chart... However I know how I would have traded any chart like a pro when I see it complete... the problem is how to do it with the same results when you don't see to the right of your screen

So how do you determine such entry points in real time?

The chart is self explanatory.The first top and resistance of the day is on the far left of the chart ,so is the first bottom and support.

After the first top and bottom is made , you buy everytime the price goes back to the support or previous bottom line and u sell everytime it goes back to the resistance line or previous resistance line.

One does not need to see the right side of the chart .....just the left side of the chart where the first support and resistance.

Day traders can download indicators which show intraday support and resistance lines.from post 63

https://www.mql5.com/en/forum/177070

One can backtest the support and resistance strategy manually by seeing the left side of the screen and scrolling forward minute by minute, in that way the trader uses only previous support levels and a price action filter

El Cid

 

el cid:

Thank you very much for explaining.

bubble:

Thanks for your continuing classes. I sure hope the login problems will disappear so that it won't prevent you from posting

Looking forward for upcoming lessons.

 
bubble:
I am having some real problems with logging in to the forum lately dont know if any one else is.

Malcik

When you have identified an area of support look at how many minor swings there has been to this support ,enter on the second or third swing back to support , so the price would have to bounce of your area of support at least once and move higher then return to support place the stop loss under the low of the lowest swing.

For the exit assuming the trade goes ok find the last peak, when the price hits this peak move your stop to B/E +1 and close half your position ,let the other half ride because if your trade is with the trend the price will normally go to the next peak, if your taking a counter trend trade exit at the first peak.

Dont forget to note any points of resistance on the HTF when looking for the exit.

I hope this clears up some of the points you raised.

bubble

Hi bubble, 2 questions.

1. "enter on the second or third swing back to support" are you referring to 1 hr tf? What about other tf?

2. the exit line in the gbpusd example, would you reverse the position?

Thanks

jackt

 

Bubble

All theories are great.

How about posting trades....before they happen and seeing the results

We will see how profitable support and resistance is.

Regards

El Cid

 

Excellent Stuff Bubble

Bubble i admire your work and step you took to teach us newbies about one of the most important topics and i think you are going very good i am also learning alot from this thread ..

please take a look at my chart i am long EURGBP this trade has to do with different timeframes and support and resistance .

went long @ 0.6769 and stop @ 0.6750 as you can see the price is just at 0.6773 so not much has been done except i think from monday it is going to start going up hopefully for next 100 pips or more .. even if not ,well it doesn't matter atleast i planned this trade and i am still learning from you and others here on this forum.

"Lime" line shows which level i was waiting for the eurgbp to break.

many thanks and please continue to teach ..

a silent reader.

Guyver

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