How to use Support and Resistance Effectively - page 23
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As you say bubble, it's fascinating how prev zones of activity strongly influence price action when it decides to journey back from whence it came.
Geppy highlighting an interesting return trip thru the prev zones of s&r. Ok, so it failed to clambour back to the stronger level at 248.50 as passed by yesterday, but the secondary level at 247.85 held court late in NY trade & again this morning as players continued to push the Pound off it's pedestal at current highs.
Support Area
Hi Bubble,
The first chart is the gbp and it shows price at support level and additional support & resistance lines. It appears price is touching the support line @ 2.0511 for the third time, does price need to break the support line go down and come back up and touch the bottom of the support line @ 2.0511 before we take a short position?
The second chart is a close of of the same price action at the support line 2.0511. The current support line of 2.0511 is only about 40 pips from the next support line at 2.0470 and the next resistance line @ 2.0547. If price bounces and starts t go up when do you take a long position. It seems to me that by the time you decide there is a bounce off of the support line @ 2.0511 it will be half way to the resistance line @ 2.0547. Does there need to be more space between the support and resistance lines to initiate a trade?
Dave
4Hr Direction
Hi Bubble,
Here is what is a bit confusing. The 4hr chart is showing long term trend is up, but the short term direction is down. That is why I asked about a short trade. I thought if the short term direction on 4hr chart matched with the current direction we could take a short trade? Did I miss something here?
Dave
GBP Chart
Hi Bubble,
I promise this is my last question today. Thank you for your time, I find this very helpful.
I have posted 2 charts to clarify your last post. First one is 4hr chart showing 4hr resistance and 4hr support lines with the price correction down to magenta support line.
The second chart is the 1hr chart showing the lower high and lower low. My question is if I were to initiate a short position have I placed my entry in the proper area (blue box)?
Dave
Anna-Maria
welcome to the thread,
just checked your profile and i see you are a fund manager..Thank you for the welcome.
Ha ha ha, I wish! I'm just a worker bee I'm afraid - not sure I'd be willing to take the pay cut bubble
It's very refreshing to come across a thread such as this. A rare occurance indeed.
I, along with the other contributors & observers, look forward to the continued development of the thread.
It really is fine work & a big plus for those who are seeking a long term strategy model.
Good stuff bubble.
Yeah, nice opp on this pair too earlier. Now back at a familiar decision zone huh?
I guess you folks have noticed the vicinity of a good majority of these instruments resting/reaction zones??
Round Numbers (00's). Keep your eyes peeled for these important levels
Sorry bubble - I'll butt out & desist from clogging the flow.
This is a good thread. Should focus much more on stop losses though b/c S/R is really what trading is and should be about.
Sad thing is that most want to only see entries on a chart (I was one) and don't realize that when you're only focusing on great entries and not on a good SL/TP plan, eventually the major DD (STEINITZ)and the psychological BS that comes with it that traders deal with is what's going to wipe out your acct. ENTRIES are easy is Forex!
If you're not studying and using SL's, you're not trading. A monkey can push a sell/buy button and hope and wait for the trade to come back in their favor, yeah?
KEEP THIS THREAD GOING!
Good to see you still have your nose firmly embedded on the grindstone Steve?
You appear to have a knack for unearthing gems amongst the rubble, keep the study (& questions) going. The only way to learn is to ask
Nice thread bubble - anything which keeps the working template clean & tidy is well worth the trouble. I sure hope folks appreciate just how valuable this kinda information really is.
Forget all those wiggly lines & fancy artwork underneath the chart reference! Keep it clean & keep it honestHey there Anna,
How you doing? Yes, another fine thread, i am good at finding them you are correct. Still cracking away at it. Good to hear from you. Hope Buk is well!
Sorry, for the invasion Bubble!
Steve
Ics,
thanks for your input but no thanks ,the day i start listening to crap like this is the day i pack in trading ,why fix something if its not broken.
s/r is either there or it isnt the markets dont open in asia and decide to trade one way and another way in european and us session.
no further input from you on this subject is needed.
bubbleLOL, i must admit Bubble, i do find your abruptness very amusing.
Hi Bubble,
I'm still waiting for an answer to my last post. #257.
I am wondering if you didn't see it.
I know you don't like to have any more posts until the last is answered.....
And I have a few questions brewing........
Thanks
mairangi