How to use Support and Resistance Effectively - page 11
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I think we are in channel, wait for break out and re-test of upper or lower S/R channel.
yes. i think you are right.
different timeframe has different trend
at the point of this posting it's a downtrend for scalpers...
use trendline to identify support/resistence
The upper line on your chart was resistance, at the time you posted that area had already been tested twice the trend on the 240 is up, the trend on the daily has changed over the last few days to up what does this tell you (the trend is up) so taking this trade would be countertrend.
Here is a rundown of the order to confim a trade.
Wait for a market turning point(price to turn down/up from a peak or trough.
Check the trend in 2 timeframes higher.
Trade only in the direction of the trend.
If you take a counter trend trade make sure that you are 100%+ sure you know what you are doing.
Mark the peak at the turning point as s/r check higher charts to confirm, the more that match the better if s/r only matches trading timeframe but is with the trend thats fine.
Do not enter trade immediately ,if you think the price is running away from you before you entered , think again, its a trap , you will end up watching the price retrace to retest.
Do not trade breakouts (breakouts are a weak form of trading), you will lose more than you will win.
REMEMBER BUYERS ENTER THE MARKET AT SUPPORT
SELLERS ENTER THE MARKET AT RESISTANCE.Hi bubble,
Thanks for continuation of this thread. However, I'm a bit confused right now. Earlier you said (or I understood it the way) that:
You waited for a market turning point (for example for a top)
You marked the _last support before the peak_
You waited for the price to break out back to the downside
You waited for 1st retracement as a test that the role reversal works and that the support now becomes a resistance before a price's way down
You waited for the _2nd retracement_ for short entry
(Reverse for long entries)
Now you are saying that:
You wait for a market turning point (for example for a top)
You mark the _peak itself as resistance_
You wait for the _1st retracement_ for short entry
So now I'm just confused which one of these you actually follow... or do you trade both of them?
Thanks again for putting your time into this thread. I can't wait till next lesson.
Thanks, bubble. I'm looking forward your next lessons. One suggestion, Could you post some charts as example to show us how to decide a real trade? I thinks it will be more clear than by words.
The upper line on your chart was resistance, at the time you posted that area had already been tested twice the trend on the 240 is up, the trend on the daily has changed over the last few days to up what does this tell you (the trend is up) so taking this trade would be countertrend.
Here is a rundown of the order to confim a trade.
Wait for a market turning point(price to turn down/up from a peak or trough.
Check the trend in 2 timeframes higher.
Trade only in the direction of the trend.
If you take a counter trend trade make sure that you are 100%+ sure you know what you are doing.
Mark the peak at the turning point as s/r check higher charts to confirm, the more that match the better if s/r only matches trading timeframe but is with the trend thats fine.
Do not enter trade immediately ,if you think the price is running away from you before you entered , think again, its a trap , you will end up watching the price retrace to retest.
Do not trade breakouts (breakouts are a weak form of trading), you will lose more than you will win.
REMEMBER BUYERS ENTER THE MARKET AT SUPPORT
SELLERS ENTER THE MARKET AT RESISTANCE.This was such a good post I printed it and have it next to my computer!!
I noticed today (GBP/USD)...4hr trend up...I checked 15 and 30 min charts and saw pin bars at support(support was role reversal...prior swing high on 1hr chart and congestion area on 4hr chart)...I thought this would be a good place to buy but maybe place a sell target at prior resistance since it seems price has had a hard time recently breaking the recent tops.
Bubble...please critique my analysis...don't spare my feelings!! I really want to learn!
Thanks
Well done Rick your on the right track .
The only thing i would say is that on the 60min chart there was a GAP between price and role reversal support which as you know from my previous posts indicates a fast move up also that nice double bottom formed which was the second attempted retest which fell short again of support creating the gap.
The gap to support was around 25 pips so add a few pips on to that and you have your stop , less risky way to enter is to wait for some upside momentum after the double bottom or put a stop entry above the previous high.
One other thing your combination of timeframes is a bit off , in a previous post i gave the combination of timeframes to use.
A very nice trade for over 100 pips
bubblevery good analysis,bubble, today i finally know what is gap trend. hope study more different scenarios soon.
I think today Euro must touch the daily down trendline, so cant go up. Am' i right, bubble? see chart
Is this a gap on EURO chart?
i'm a bit confused. the chart i post seem a bit like the pic you post at first page.
yes, i notice the minor difference. thank you.