How to use Support and Resistance Effectively - page 30
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Hi Bubble,
Continuing from Mairangi case, I'm trying to learn if I can understand where to put the levels on the right of the chart. Could you please comment on this matter and explain your reasoning ? On the chart below, I'm playing a what-if scenario, that if the price trend up:
1. Have I correctly place the next Support (dotted red) ? My reason for this line is that this was the the Support on 4HR swing down correction, as indicated by the Gold rectangle.
2. If that was the right Support, then the entry will be at the touch & bounce up of the dotted red line ?
3. Have I place the right target (gold solid) ? The reason is that this was the high on 4HR (on gold rectangle).
I'm still confuse with another potential RBS, as illustrated by the second picture. In this case:
1. The next Support/SBR will be at the last new High. This would be similar to the condition of last trade on Mairangi case.
2. After a new HL is confirmed and a new HH is formed,the entry will be where it bounce back (after second time?) on that RBS.
3. Target is still the same for the same reason above.
Hi Bubble,
Continuing from Mairangi case, I'm trying to learn if I can understand where to put the levels on the right of the chart. Could you please comment on this matter and explain your reasoning ? On the chart below, I'm playing a what-if scenario, that if the price trend up:
1. Have I correctly place the next Support (dotted red) ? My reason for this line is that this was the the Support on 4HR swing down correction, as indicated by the Gold rectangle.
2. If that was the right Support, then the entry will be at the touch & bounce up of the dotted red line ?
3. Have I place the right target (gold solid) ? The reason is that this was the high on 4HR (on gold rectangle).
I'm still confuse with another potential RBS, as illustrated by the second picture. In this case:
1. The next Support/SBR will be at the last new High. This would be similar to the condition of last trade on Mairangi case.
2. After a new HL is confirmed and a new HH is formed,the entry will be where it bounce back (after second time?) on that RBS.
3. Target is still the same for the same reason above.
On your chart i would put resistance at 2.0375 ish so the breakouts allready happened, and await a test of that new support level.
I may be wrong as i'm pretty new to this also, its just my interpretation, look forward to Bubbles analysis.
Invalidate The Down Trend
Hi Bubble,
I just wanted to make sure that I am understanding when a trend becomes invalid. Here is a picture of the 1hr CAD. First off, if I have identified the S&R levels and Highs and Lows correctly then it looks like we have a down trend in place.
If I understand the Pring PDF document correctly, when price crosses the magenta line and forms a new high peak followed by a higher low trough above the magenta line then the down trend is no longer in place (A). If the price continues down below the aqua line and forms a new LL followed by a LH then the down trend remains intact (B). I want to make sure I understand this concept, so please correct me if I am wrong.
Dave
Hi Bubble,
I just wanted to make sure that I am understanding when a trend becomes invalid. Here is a picture of the 1hr CAD. First off, if I have identified the S&R levels and Highs and Lows correctly then it looks like we have a down trend in place.
If I understand the Pring PDF document correctly, when price crosses the magenta line and forms a new high peak followed by a higher low trough above the magenta line then the down trend is no longer in place (A). If the price continues down below the aqua line and forms a new LL followed by a LH then the down trend remains intact (B). I want to make sure I understand this concept, so please correct me if I am wrong.
Davei 'm also confused on labing H,L,HL,HH etc. but i think your understanding in this chart is right.
I am learning a lot from this thread...finding the sup/res is becoming easier and even trading with the higher TF trend is easier....
I am still working on the entries though...I want to enter as close to the sup/res line(s) as possible...I don't know if I should try to use some sort of indicator on the 5 or 15 min chart or if I should just look at the bars themselves...
Anyone have suggestions/techniques?
... the target is the peak higher than the current one. bubble
Hi Bubble,
By this statement do you mean the target is an historically higher peak?
Is that why you said "trading blind" earlier in reference to the newer highs by gbp/usd recently?
Cheers
Trend Following Indicator
I am learning a lot from this thread...finding the sup/res is becoming easier and even trading with the higher TF trend is easier....
I am still working on the entries though...I want to enter as close to the sup/res line(s) as possible...I don't know if I should try to use some sort of indicator on the 5 or 15 min chart or if I should just look at the bars themselves...
Anyone have suggestions/techniques?Hi Rick,
You can use any trend following indicator to help determine a reversal along with the price action at your S&R areas.
Dave
Res Becomes Sup
Bubble
My understanding is that the main RBS level is the previous HH (in my chart the one on the left). However, I have noted that there is often additional Hi bounces (in my chart the one on the right), which might be during the retrace from the HH and or in the range the might follow.
1. Do the lower intermediary Hi's also offers support when broken ? (See Chart 1 Below)
2. I have read the thread multiple times and am still unsure how you figure out how far the retrace (from a high) is allowed to travel back through the RBS (Old Hi) into the range of the previous swing, while keeping a entry long a valid possibility ? I have read your answer (Pasted in below) to steveshutts, though often the point 2 is a huge amount of pips away. Can you expand your thoughts on this issue, which seems to be the key to getting the entry safe. (See Chart 2 Below and your original comment to steveshutts. This chart is the one you posted in reply to steveshutts.)
Bubble's response to steveshutts:
Look at the chart i have posted, as you know from reading the thread that i am looking to enter from a retracement to support back into the trend which is what happened here the price was making higher highs and higher lows.
I have used the 15 chart to illustrate range as the 60 was not clear enough.
Looking at the last high at point 3 i would look for the first trough down from that high which is point 2 now that point is the low of the range that the price can come into before turning back up , now if the price came lower than that then the trend is now broken and there would be no entry.
I am sure that you will undestand the concept , for those that do not understand please read the pdf i posted from marting pring reeaks and troughs.
FX2007
Bubbling
Hi Bubble,
I was going through Martin Pings article and the range posts with Stevehutts.
I would like to check with you if I am understanding "Range" correctly.
I have labled 2 price levels in red. The upper is the last peak HH and the lower the last trough of the HL.
I understand this to be the Range.
Now the price has broken below the range of the last HH and HL.
If I have understood correctly now the trend is broken.
Am I understanding this correctly?
mairangi
Hi Bubble,
I was going through Martin Pings article and the range posts with Stevehutts.
I would like to check with you if I am understanding "Range" correctly.
I have labled 2 price levels in red. The upper is the last peak HH and the lower the last trough of the HL.
I understand this to be the Range.
Now the price has broken below the range of the last HH and HL.
If I have understood correctly now the trend is broken.
Am I understanding this correctly?
mairangiI know the question is for Bubble, and do not want to interfere, but if I just can add a sub question: doesn't must be a LH now, before we can say certainly that the trend is broken ?