Nice trade. What timeframe are you using to get such a tight stop, and do you always trade with such a tight stop? I suppose with such a high risk/reward you can afford to be wrong quite a bit and still be profitable.
When using the 240 chart for the main direction, do you always wait for the second touch using the hourly chart? I take it that when you see price coming back to the resistance zone for a second time you zoom into the smaller timeframes to watch for price action for a tight entry?
bubble, great risk reward , i think , it will be the biggest advantage here.
someone told me abt this earlier regarding support and resistance level...
he said that levels ending with xx30, xx50 and xx80 number is a strong one. he also said that these 3 levels are a psychological level.
can u give your thought on this?
True support and resistance is based on logic which has been proven to work over and over as i have said many a time , it is the interpretation that is the difficult part.
great! and that clears me up. thank you bubble
Having said that we have a another turning point on the swissy for a long , a couple of things to note with this one are that the 240 hour needs to close long and looking at the last two swings we have a higher low and a lower high indicating a trend change, in this situation we need to look lower for an entry at around 2132.
Sorry, i don't understand what made u decide to take a long here and why 32? Was it the second bounce on the hourly off 2100?
Can u possibly explain the turn identification?
Also, S+R is more a zone than an exact point or price. I am amazed that you enter with just a 10 pip stop. I am assuming you entered at market when you saw price coming off from the top? Otherwise, how can you be so certain of price coming up to your price and moving back down so precisely.
Forgive me, if i am misunderstanding this, i am not questioning the ability of your methodology at all, just trying to understand it.
You know the big money, it knows your using these levels, it sees them too, and does the opposite to get your money.It also sees how many are at these levels.
Look now at this delayed news spike from NFP, they waited for everyone to go short, then when they felt like it, they bought everyones losses.
[People who need revenue from selling trading info and systems cant trade themselves.
Why would you buy trading systems off someone who cant trade? )
Why do people put this satement or even think of this as always true?
I don't sell anything but would like someday to make some extra $ aside from trading.
This is like saying Michael Jordan couldn't play basketball so he had to sell sneakers on the side to pay his bills.
Thanks for asking the question about the usdchf Steve. It had me scratching my head as well. I thought the turning point was the point at which the market actually reversed and headed upwards.
Thanks for your reply Bubble. These questions help clarify things. So the turning point is when the market turns upward, but you use a trend indicator to decide when that turning point has been hit...as in this case the actual turning point was earlier, but your trend following indicator pinpointed it where I have the lines on the 60 minute chart (approximately)., correct?
I'm looking forward to your discussion of range, bubble and I hope you'll speak to your method of determining trend. I am also interested in minor s/r levels in so far as I seem to be thinking they are trading opportunities and having difficulty getting to when they're important.
On the 240 chart I have, it seems to me the trend has been up for a while. You said you were waiting for the 240 to go long..from the previous bar? I have included the charts.
...probably the best thread I've encountered by the way. It seems to speak to the essence of trading so I hoping you won't get bored, frustrated or tired for a while yet.
sorry, I can't seem to edit my last post.
When I say the usdchf 240 chart seems to be heading up, I mean recently, since when I look at what I consider the overall trend, it's clear the currency has been in a downtrend since June 15th, as indicated by the 240 and the daily.