How to use Support and Resistance Effectively - page 17

homestudy
196
homestudy  

Thanks

Bubble,

I just want to take the time to say thank you for the effort and knowledge you put into this thread. I haven't posted because I haven't wanted to cloud up the thread and I find your posting clear and concise, but rest assured I read the thread every day and continue to look at charts in a different way. As my trading continues to grow and improve one of the pillars of my trading will be the knowledge you shared with us all here. Great job!!!!!!

fxcruiser
1052
fxcruiser  
homestudy:
Bubble, I just want to take the time to say thank you for the effort and knowledge you put into this thread. I haven't posted because I haven't wanted to cloud up the thread and I find your posting clear and concise, but rest assured I read the thread every day and continue to look at charts in a different way. As my trading continues to grow and improve one of the pillars of my trading will be the knowledge you shared with us all with here. Great job!!!!!!

Hola, home boy, let it sink unto you. It's unbelievable what a good trader YOU can BECOME! Keep at it!

Oh, bubble, I applaud you for the time, effort, and contents you have put forth in this thread. You make it so much easier to many members to understand the importance and the recognition of these KEY areas in day to day trading.

ENJOY!

fxcruiser

ZeeJay
144
ZeeJay  

kiwi 2007-07-08

hello guys,

wonderful thread. i love support/resistance trading.

i have this setup that just happened in the kiwi.

do we take it short? i am seriously considering it.

CJ.-

Files:
Malcik
158
Malcik  

Hi bubble,

How about going short on cable at 2.0130? Is it a correct entry? Where would you place the stop and the target?

Thanks

steveshutts
49
steveshutts  
bubble:
Malcik, i think the market has already answered this one.

We are close to a shorting opportunity on the GBPUSD at the moment,just waiting for the price @ 2.0154 to make a turning point and then retest.

bubble

I am getting a bit confused here. You mainly trade off the 1 hour? I see that price broke through the 2.0140 area and has since been back up to retest this zone. Now, i would say that the timeframe above (240), which you would never contra trend, is up, so how come you are looking at shorts?

I don't think i am understanding your identification of trends perhaps?

XKR1962
60
XKR1962  
steveshutts:
I am getting a bit confused here. You mainly trade off the 1 hour? I see that price broke through the 2.0140 area and has since been back up to retest this zone. Now, i would say that the timeframe above (240), which you would never contra trend, is up, so how come you are looking at shorts? I don't think i am understanding your identification of trends perhaps?

Good Morning all.

Well said Steve, that occured to me also, a little confused here too.

steveshutts
49
steveshutts  
bubble:
Steve,

Yes i mainly trade off the 60 mimute chart . so im looking for the trend direction from the 240, how can the trend be up since the price has been falling from 2.0206, are we above the previous high ? no, so the trend is down.

what are u using for trend identification?

bubble

Well, i look from left to right on my chart to identify the main trend on that price chart. If its sloping up from left to right then the trend is up.

I am also looking for a series of higer lows and higher highs in an uptrend and vice versa in a down trend.

The 240 made a new swing low at 2.0056 but until that has been broken, it is simply a higher low in the uptrend? The real trend is not over until we break the double bottom low at 9930.

I am not using any indicators to identify trends, just price action. If the 240 chart made a series of lower highs and lower lows before reaching the 9930 then i would accept it is down.

I see a potential trend change in an uptrend when price surpasses the previous swing low. However, this is not confirmed until that new low is broken.

I am simply trying to learn here so if you can indicate exactly how you identify a trend change then i would be grateful.

Steve

ZeeJay
144
ZeeJay  

buy bottom sell tops

bubble:
Zeejay,

The set up you have posted does not look right , here is my view,the previous swing up is a new high this means that to go short you could be trading a correction against the main trend which is up or it could be a top, i can not see any s/r to confirm either of the above.Also from the way you have marked your chart it looks like you are hoping for a breakout to the downside from the line you have marked as support which is not a good idea.

So with the kiwi its not a set up that i would trade, as i have mentioned many times i will only trade with the trend from the HTF and buy at support and sell at resistance that way the odds are higher for a successfull trade.

bubble

thanks bubble,

to confirm : in my example, since the HTF trend is up, what i should be doing in terms of support and resistance is looking to buy bottoms and sell tops or

in other words: where i was considering the short. it was much more logical to go long. (because it was a bottom -support- and it was a corrective move from the prevailing up trend)

am i correct?

cj

RickW00716
733
RickW00716  
bubble:
Steve,

Yes i mainly trade off the 60 mimute chart . so im looking for the trend direction from the 240, how can the trend be up since the price has been falling from 2.0206, are we above the previous high ? no, so the trend is down.

what are u using for trend identification?

bubble

I am looking at cable also and my opinion is that the daily trend is up and the 4hr trend appears to be heading upward after a correction from 2.0205 to 2.0055...The resistance at the 2.0205 area is strong however...3 recent spikes have failed to continue the uptrend above the resistance.

I am looking at the hourly chart and see major support in the 2.0055 area(same as 4hr)...maybe support in the 2.0132 area from earlier today?

Also some support in the 2.0097 area?

Please critique and/or correct my analysis, bubble.

Thanks

steveshutts
49
steveshutts  

Sorry bubble,

I must be honest, i am totally confused as to how you identify your trends and turning points. I would love to learn more as to how you identify these, so i am hoping i will understand as you post.

Looking forward to seeing some more examples.

Cheers,

Steve