How to use Support and Resistance Effectively - page 21
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i just ve started to read the first 3 pages and i must thank you for opening this thread go on with that excellent work wishing you the best
Thanks Bubble,
That makes sense. I appreciate you taking the time.
Cheers
Continuation Eur Chart
Hi Bubble,
Just to continue with the Euro chart. We have a sideways channel formed between the gold and red lines. Price hasn't retested the gold line @ 1.3754 for 3 days and appears to be moving away from that level. You have the middle of the channel (magenta line @ 1.3792) which appears to be a strong support area since its been tested 4 times in the last 2 days. Price action hasn't been able to move significantly lower than the 1.3792 support line. Now we've retested the top of the channel for the 3rd time @ 1.3834 and it appears we may get a breakout to the up side.
My questions are:
1. If price drops to the magenta support line 1.3792 and it bounces up where or what would trigger your long entry.
2. Price breaks the red resistance line @ 1.3834, do you wait for a retrace, retest and bounce up from the resistance line before you enter a long. position?
3. What determines your entry point on the bounce up from the red line @1.3834?
Dave
Gbpyen Chart
Hi Bubble,
I've been doing lots of studying over the weekend as you can see...lol. First off, I wanted to thank you for being so generous as to share your knowledge and experience with us. I hope you will continue this thread because I believe it's one of the most informative and best threads that I've seen in any forum.
On Friday the gbpyen dropped 150 pips and stopped on a support line. We've had a retest of the support line @ 248.83 and it appears that price is moving in the long direction. After you see the 1st retest of the gold line @ 248.83 what determines your entry point into a long position? I'm a little unsure if I should be entering into a long position considering the next resistance line is at 249.64. Can I get some feedback on this situation?
Thanks,
Dave
Reading Recommemdations
Hi Bubble,
Are there any books or websites that you would recommend where we can learn more about S&R?
Dave
Trend Following Indicator
Bubble,
Here is a quote were you talk about Trend following indicators. Can you clarify what a Trend following indicator is vs other types of indicators? So if I understand what you are saying here, you not only need a rejection from an S/R line to be present for a trade u wait for a signal from your "Trend Following Indicator" before entering a position?
"I wait for a turning point u can use any trend following indicator, a turning point occurs when the price rejects a s/r level wait for the price to come back for a retest ,u could use momentum for confirmation and gauge the strength of s/r if the same area matches with s/r on a higher timeframe."
Dave
Example Chart
Range what is it and how can it help us ?
When talking about range most people think of it in the context of a trading range where the price is bouncing between support and resistance and therefore the market is classified as trading between a range or the securities daily range which is how many pips on average the security moves in a day.
There is another use of the term range which we are going to look at here, and this refers to how far the price can travel into its previous range before a trading opportunity is discounted or in simpler terms how far the price can travel into the previous peak/trough.
Remember the creeping trend where for instance in an uptrend the price is making higher lows and higher highs but each higher low comes into the range of the previous peak.
Price can trade into its range in a trend , at a top/bottom, during role reversal, when trading in between a normal range and its important to consider this in your trading as it can give many clues to help us with entries and timing when to take a trade.
To find the range in an uptrend we need to look at the top of the previous swing down then we need to find the area where the top was broken the price should not close past this area otherwise it is considered that the uptrend has been broken.Once you get the hang of this you will notice that the turning points i always talk about usually happen around this area.
ok will continue this later with some examples.
bubbleHi Bubble,
Sorry for so many post in a row. I'm trying to read and catch up with you as fast as I can. In the above post, the last paragraph talks about when a trend is broken. Could you show a chart example of what that looks like?
Again, thanks for your time and effort.
Dave
Reply
First of all your chart is wrong if you wish to continue from my previous post make sure you post the correct chart.
The channel was formed between the gold and magenta line then the price made a new high and has since been testing the top of the previous channel which is previous r becomes new support.
There were several opportunities from retest to enter from the gold line long up to a new high and the same from the magenta line up to the highs again.
bubbleHi Bubble,
1. Yes, I know you are not my personal tutor. I read your thread and was very excited about what you were teaching. Sorry for so many questions.
2. Not sure why you said "my chart is wrong". The chart I posted was EUR 1 hr July 9-20. Looks like the same chart to me.
3. I am not lazy and I do search for things on the web. I asked about indicators so I could clarify what indicators you classify as trend following. Thank you for the reply. I asked about books because I thought in your past studies you may have read a great book on S & R that helped you to understand the concepts you are trying to teach.
4. No worries, I will remove the period separator from my charts if I post again.
5. I learn by reading and looking at attached charts. Some of your points may not have had a chart attached. That is why I asked for clarification of the point you were making. If I missed the chart, I apologise.
6. I have read the thread several times now and plan on reading it several more times. I think what you are teaching is very helpful. Keep up the good work.
Dave
Trigger
Hi Bubble
nice work from you in this thread . I have learned a lot.Please if you find a little time could you answer downunderwaves questions in post num. 257. I now are not exactly about r/s levels but I think here are more people that would appreciate your answer . I particularly interested question num.1. Please keep up the nice job. Thank a lot.
Peter
Thanks again Bubble!
Hi Bubble and all other S/R followers.
Had a great day using your system on my demo account + 250 pips on numerous trades. My favorite was the GBP/JPY last night ( sold two lots at 249.71, tp at 248.84......nice). It looks like there may be a small selling opportunity brewing as well, what do you think bubble?
Thanks again Bubble.