How to use Support and Resistance Effectively - page 17
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I am getting a bit confused here. You mainly trade off the 1 hour? I see that price broke through the 2.0140 area and has since been back up to retest this zone. Now, i would say that the timeframe above (240), which you would never contra trend, is up, so how come you are looking at shorts? I don't think i am understanding your identification of trends perhaps?
Good Morning all.
Well said Steve, that occured to me also, a little confused here too.
Steve,
Yes i mainly trade off the 60 mimute chart . so im looking for the trend direction from the 240, how can the trend be up since the price has been falling from 2.0206, are we above the previous high ? no, so the trend is down.
what are u using for trend identification?
bubbleWell, i look from left to right on my chart to identify the main trend on that price chart. If its sloping up from left to right then the trend is up.
I am also looking for a series of higer lows and higher highs in an uptrend and vice versa in a down trend.
The 240 made a new swing low at 2.0056 but until that has been broken, it is simply a higher low in the uptrend? The real trend is not over until we break the double bottom low at 9930.
I am not using any indicators to identify trends, just price action. If the 240 chart made a series of lower highs and lower lows before reaching the 9930 then i would accept it is down.
I see a potential trend change in an uptrend when price surpasses the previous swing low. However, this is not confirmed until that new low is broken.
I am simply trying to learn here so if you can indicate exactly how you identify a trend change then i would be grateful.
Steve
buy bottom sell tops
Zeejay,
The set up you have posted does not look right , here is my view,the previous swing up is a new high this means that to go short you could be trading a correction against the main trend which is up or it could be a top, i can not see any s/r to confirm either of the above.Also from the way you have marked your chart it looks like you are hoping for a breakout to the downside from the line you have marked as support which is not a good idea.
So with the kiwi its not a set up that i would trade, as i have mentioned many times i will only trade with the trend from the HTF and buy at support and sell at resistance that way the odds are higher for a successfull trade.
bubblethanks bubble,
to confirm : in my example, since the HTF trend is up, what i should be doing in terms of support and resistance is looking to buy bottoms and sell tops or
in other words: where i was considering the short. it was much more logical to go long. (because it was a bottom -support- and it was a corrective move from the prevailing up trend)
am i correct?
cj
Steve,
Yes i mainly trade off the 60 mimute chart . so im looking for the trend direction from the 240, how can the trend be up since the price has been falling from 2.0206, are we above the previous high ? no, so the trend is down.
what are u using for trend identification?
bubbleI am looking at cable also and my opinion is that the daily trend is up and the 4hr trend appears to be heading upward after a correction from 2.0205 to 2.0055...The resistance at the 2.0205 area is strong however...3 recent spikes have failed to continue the uptrend above the resistance.
I am looking at the hourly chart and see major support in the 2.0055 area(same as 4hr)...maybe support in the 2.0132 area from earlier today?
Also some support in the 2.0097 area?
Please critique and/or correct my analysis, bubble.
Thanks
Sorry bubble,
I must be honest, i am totally confused as to how you identify your trends and turning points. I would love to learn more as to how you identify these, so i am hoping i will understand as you post.
Looking forward to seeing some more examples.
Cheers,
Steve
cable S/R trade
Is this resistance becomes support trade or is it pure luck?
Intraday support and resistance indicator
https://www.mql5.com/en/forum
I would like you to make 1 indicator for me to use this manually
The indicator draws hourly supprt and resistance lines throughout the day as you will see on my chart .I use a dozen indicators for drawing lines for the next two hours after a support or resistance is established.I would like just one indicator which will draw all the support and resistance lines , rather than me having 24 indicators to show hourly support and resistance lines.
In addition to the support and resistance lines ,four additional lines(in different colours) are required above the resistance line at a spacing of 10 pips ,and four additional lines are required below each support line at a spacing of 10 pips.The indicator also has pips for entry option (to add /deduct)pips to the supprt /resistance lines
usdchf
i like this thread alot but still not a customed to resitance becomes support or support becomes resistance just maybe slowly i will .. usdchf breakout
steve,rick,
i have to put my hands up and say i made a big **** up today ,it happens sometimes, i was trying to trade a reversal and my fingers were burnt, fortunately a small stop saved me and my positive mind frame is still intact.
This one will go in the losing file and i will take a look at it later as there is no point in dwelling on it now.
bubbleYou mean you don't get every trade right? You are not the "holy grail"?
LOL!!
You proved the importance of stops!
It is interesting though...just when I think cable has hit a possible top, it keeps going!
Is it human nature to try and see/pick absolute tops/bottoms?
What do you use(if it is not proprietary) to determine trend?
I have been using a combination of things...Ichimoku on daily and 4hr charts and also the direction and cross of a 5 period moving avg of close and a 6 period moving avg of open.
3 cable scenarios, as of July 11. Trend is up - higher probability to go long.