How to use Support and Resistance Effectively - page 26

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Improving my skills.........

Bubble, firstly my sincere thanks for sharing your years of trading expertise so selflessly with everyone. Secondly, for "staying in the tracks" amidst many attempts of people not in the know to divert you. Well done.

I have learned a lot from traders like you and although I am fairly successful with my XO-method which is also based on the H1, your method can just improve my trading exponentially, but more importantly, it can reduce the stresslevels even further and that alone is worth a lot.

Attached is my first attempt at trying to understand what you are teaching and it is this morning's GBP/USD. Would you mind commenting on the trade not necessarily my chart, but I want you to tell me if my chart is correctly constructed please. I used the Magenta for the Highest TF (Day), the Gold lines for the H4 and the Blue lines for the 60M (H1) chart R&S.

What I would like to know is: 1). do we only look at the chart open in front of us, or do we go back as far as possible to identify the R&S lines as I have done?

2). Where would you have placed the Support line this morning?

3). Where is your immediate Resistance? Mine is @ 269.

Thank you for looking and replying to my request.

Best wishes.

Files:
tsd-ramps.gif  33 kb
 

A last question please........

In the attached chart, I have drawn a WHITE-horisontal line where I thought there was a Resistance as the price bounced back up before returning or is that not seen as a level of potential resistance?

This morning that level was tested, but not broken.

Is this an "over-kill" on my behalf as I could not find the corresponding R / S on the left hand side.

Thanks.

Files:
tsd-ramps-2.gif  16 kb
 

GBPYEN Short Trade

Hi Bubble,

Here's a trade from earlier today on the gbpyen. Identified possible short on 1 hr chart and then used 30 min chart for entry. Price rises up to the resistance area @ 241.00 and touches twice. Entered @ 240.44 when price broke the low of the bullish bar indicated by the red arrow. Exited position @ 239.30 for 114 pips.

How did I do on this Bubble?

 

Hi bubble,

Wonderfull, great trades. Actually it's a wish come true for me. That's what I was waiting for to see some of your live trades. This helps a lot at this stage. It will be highly appreciated if you can continue posting these trades whenever you feel like it.

Thanks again for all the good work.

samso

 

bubble: On the daily chart of GBP/USD there is resistance becomes support from July 3,4,5...How relevant would this be for todays low? Or is it just coincidence?

The 4hr chart seems to be in a downtrend now...is this correct? Does it have to exceed the peak from 7/12 2.0363 to resume the uptrend?

PS. I really think this thread is great and I want to learn much more!!

 

Bubble

Thanks for posting the trades last night.

When you post your entries, please could you add where you placed your initial stop and the reasoning for it's placement. Perhaps also how you trailed your stop as the trade progressed. I am sure you will agree that the way you place / move stops can have a huge difference to your success.

I think it would be a good idea for everyone else to post this additional information as well, when showing your trades. Makes it more meaningfull.

Here is a good recap on S/R

NQoos - Price Action by Buffy

 

Hi bubble,

Thank you for your effort in this very educative thread. I've been reading and learning so much through this. Here is my attempt to see if I understand about SR correctly. Please correct me if I made mistake here.

At the moment, I have question about what the price is doing and how long a level can be valid as S/R. The 2.0281 line was fine to act as support and resistance. But the last 10 bars price is wobbling around this level, and no longer being exact. So, what would be your consideration in this specific circumstances ? Is 2.0281 no longer a valid level, and should I draw new S&R around this small range ?

Thank you in advance

 

NZDUSD H1 Setup

There is an excellent example just formed on NZDUSD H1 chart. Previous support turned resistance around 0.7720, which we are currently sitting at.

 

Live trade example

I am now short NZDUSD at 0.7722 with a 0.7740 stop, an excellent risk/reward scenario.

 

Thanks for clarifying Bubble. Was a great trade anyway, just closed for +114 pips.

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