How to use Support and Resistance Effectively - page 20

[Sosan]

Learning S&P

HI Bubble,

just wanted some feedback about this trade.

Am I understanding what you are saying?

thanks in advance.

Mairangi

[Sosan]

S&r

Thanks Bubble,

good thing we have stops eh!

Thanks for your time.

mairangi

[RickW00716]

bubble: Do you use any indicator(s) to show the peaks and troughs or do you just visually identify them?

I was wondering if a "zigzag" type indicator could be used to identify the peaks and troughs for us then we could use your method(s) for analysis and trading.

PS. I have no desire to use zigzag to trade...just assist in peak/trough identification and labeling.

[downunderdave40]

bubble:
Mairangi,

your chart looks good , my only concern at the moment with this GBPUSD is that we are almost trading it blind ,i personally do not have enough historical data on the 60 and 240 to see where the next resistances are above the current peak on the 60m, if that peak on the 60 matches a resistance on the 240 we could be in for a bigger correction.

bubble

Bubble,

When you say that "we are almost trading it blind", I take it since we are at price levels that we haven't seen since 1992 or so, that there just isn't any historical data to draw S/R lines from?

Dave

[Sosan]

trading it blind

bubble:
Mairangi,

your chart looks good , my only concern at the moment with this GBPUSD is that we are almost trading it blind ,i personally do not have enough historical data on the 60 and 240 to see where the next resistances are above the current peak on the 60m, if that peak on the 60 matches a resistance on the 240 we could be in for a bigger correction.

bubble

HI Bubble,

good point you have brought up about "trading it blind". Because of lack of historical data at this price level I have closed the trade out just (TP 2.0535) under the Next Resistance level @ 2.0544.

Now I will wait and let the price action dictate the next S&R levels.

Also to note that this is the third test of the Resistance level @ 2.0544 and we may be looking at a large pull back/ correction, as you say.

mairangi

[jerrydeng]

bubble, Can you teach me when the price reach S/R, how can i identify and enter at a turning point that you said? thanks.

[Sosan]

bubble:
mairangi,

looks like your getting the hang of it ,sods law though just as you close a trade it shoots up further, still the main thing is that you made a good trade and some nice profit.

We could take this a step further and rather than close a trade early drop down a timeframe and use the same s/r principles that you have learnt here to monitor your trade because in a trend the price will normally make a new high above the current one.

I will go into how to monitor trades in more detail, where to set take profit levels,when and why to close a trade before it hits your target at a later stage when everyone is up to speed.

bubble

Yeah, sods law alright! Not complaining though. Mainly I wanted to follow what you have taught so far.

Look forward to the details of the trade monitoring.

mairangi

[XKR1962]

Hi Bubble,

I'd appreciate it if you could take a look at this trade opportunity I took on the 4hr tf.

I entered at 122.25 with a target of 121.55 (the support). Was it just luck?

I actually took 3 lots closed the first at 121.78 the second at 121.55 moved my stop on the last to 121.78, then hoped the last would make the next support at 121.00. I actually closed it at 121.05.

240 pips, nice, shame it was just a demo

Thanks again for all your help.

[substanz1973]

Hello.

This is my trade on GBP/USD. Entered at 2.0496, out at 2.05148... + 18 pips.

Was good for 88 pips .

[Sundowner]

Hi Bubble,

On this chart I see the price making a new high at point A, so looking back to the previous trough at point B, I'm looking for the price to retrace to the trough but not lower.. Point C is lower than the trough so the trend should be broken.

Is this how you would analyze this?

Thanks

Nothing to worry about from me, buddy. (I'm referring to your post 245)

Something is wrong with my analysis and I'm not sure what. As usual, thanks for your input.

Cheers