How to use Support and Resistance Effectively - page 14

[RickW00716]

I know you have mentioned that you can use any indicator to confirm s/r, but can we use price patterns alone?

Sometimes I notice that at turning points (example EUR/USD this week) that price rises into resistance(on 4hr and 1 hr) but doesn't close above it and instead forms pinbars or bars with long "tails"...This seems to be a great place to risk a sell...I know that you don't follow trendlines but there is a downtrend line that begins 4/30 on the daily chart that price recently rose and stalled into.

Just curious what your opinion is on this....thanks

[Sundowner]

Hi Bubble

Thanks for this thread, it's brilliant really...thanks as well for the help; very decent of you to take the time.

Question about the usd/chf trade.

If I am correct about the time of your entry on the chart (please see the chart I posted) did you take this trade because of the number of bounces off resistance?

Your decision was ultimately correct, but being new to this I'm curious about the thinking you went through at the time of the trade.

I see the HTF was in agreement, so I'm wondering if you always determine your trades based upon a specific number of bounces from resistance, or if there's something else. I have studied the thread, looked at charts this weekend, but I'm still unclear.

According to my understanding of what you have said, you wait for the price to be rejected at least once or twice and that, along with agreement of the HTF is how you enter a trade. yes? Is that why you entered this trade?

Another question..

If I understand correctly, you set s/r levels on the trading tf and look for confirmation on HTF.... from which you also determine trend. Do you begin to set up your charts by setting s/r levels on the higher TF?

Thanks

Cheers

[XKR1962]

Thanks Bubble

Hi Bubble, I just had to say thank you for this great thread. I have read and re-read it many times, studying all your example charts and applying your formulas / rules to my own.

I have a long way to go yet but this has helped me enormously. Thanks again.

[Sundowner]

Thanks for your reply, Bubble. The charts are a particularly helpful and I appreciate the clarity of your response.

Cheers

[Guyver]

Great

great trade i must say bubble great trade

[Sundowner]

Thanks for posting these charts, Bubble. They help enormously as I can replot them on my platform and view them historically.

Please take a look at this one. What I am noticing here is that if I place what seem to be major historical s/r lines on the 240 chart, the price stalls at them (blue).

Is this how you determine tp levels?

I understand your primary focus is the trading chart now and how you use the htfs. On the charts you posted there is only the curent s/r line. Have you done this for clarity of demonstration or do you only work with one (the current) s/r level on your chart?

Thanks

[Sundowner]

Thanks again Bubble,

I was missing something really basic in your analysis and you've cleared that up nicely, I think.

I thought you drew lines of s/r from an historical perspective and then watched to see if the turning points of current price action matched, checking those on htf. Even so, plotting historical levels of s/r on the 240 chart and watching the price action around them has been an education in itself.

I can see a lot more study is required. Nothing worth while comes easy.

Cheers

[samso]

Great thread

Hi Bubble,

You are teaching something which really works. May God give you the best rewards for this. Would you be kind enough to shed some light on the other tools which you mentioned in the last thread. Thanks again for sharing all this.

Highly appreciated.

samso

[samso]

I meant to say last post

samso

[Sundowner]

bubble:
Samso,

i appreciate your request , i probably should not have mentioned the above, you have to appreciate that im not about to give away the edge that i have on a public forum , i have supplied more than enough information and examples for any one who reads this thread to change the way they perceive trading and become profitable.

If I were to offer a limited number of members of this forum the opportunity to purchase the information then i would probably be branded as some sort of charlattan on the other hand if i give the information away , then it would most probably be repackaged and sold by some internet marketeer.A catch 22 situation.

bubble

Agreed,

What you have already shared is very generous and I'm sure appreciated by others besides myself.

Cheers