How to use Support and Resistance Effectively - page 22

downunderdave40
156
downunderdave40  

Trend Following Indicator

Bubble,

Here is a quote were you talk about Trend following indicators. Can you clarify what a Trend following indicator is vs other types of indicators? So if I understand what you are saying here, you not only need a rejection from an S/R line to be present for a trade u wait for a signal from your "Trend Following Indicator" before entering a position?

"I wait for a turning point u can use any trend following indicator, a turning point occurs when the price rejects a s/r level wait for the price to come back for a retest ,u could use momentum for confirmation and gauge the strength of s/r if the same area matches with s/r on a higher timeframe."

Dave

downunderdave40
156
downunderdave40  

Example Chart

bubble:
Range what is it and how can it help us ?

When talking about range most people think of it in the context of a trading range where the price is bouncing between support and resistance and therefore the market is classified as trading between a range or the securities daily range which is how many pips on average the security moves in a day.

There is another use of the term range which we are going to look at here, and this refers to how far the price can travel into its previous range before a trading opportunity is discounted or in simpler terms how far the price can travel into the previous peak/trough.

Remember the creeping trend where for instance in an uptrend the price is making higher lows and higher highs but each higher low comes into the range of the previous peak.

Price can trade into its range in a trend , at a top/bottom, during role reversal, when trading in between a normal range and its important to consider this in your trading as it can give many clues to help us with entries and timing when to take a trade.

To find the range in an uptrend we need to look at the top of the previous swing down then we need to find the area where the top was broken the price should not close past this area otherwise it is considered that the uptrend has been broken.Once you get the hang of this you will notice that the turning points i always talk about usually happen around this area.

ok will continue this later with some examples.

bubble

Hi Bubble,

Sorry for so many post in a row. I'm trying to read and catch up with you as fast as I can. In the above post, the last paragraph talks about when a trend is broken. Could you show a chart example of what that looks like?

Again, thanks for your time and effort.

Dave

downunderdave40
156
downunderdave40  

Reply

bubble:
First of all your chart is wrong if you wish to continue from my previous post make sure you post the correct chart.

The channel was formed between the gold and magenta line then the price made a new high and has since been testing the top of the previous channel which is previous r becomes new support.

There were several opportunities from retest to enter from the gold line long up to a new high and the same from the magenta line up to the highs again.

bubble

Hi Bubble,

1. Yes, I know you are not my personal tutor. I read your thread and was very excited about what you were teaching. Sorry for so many questions.

2. Not sure why you said "my chart is wrong". The chart I posted was EUR 1 hr July 9-20. Looks like the same chart to me.

3. I am not lazy and I do search for things on the web. I asked about indicators so I could clarify what indicators you classify as trend following. Thank you for the reply. I asked about books because I thought in your past studies you may have read a great book on S & R that helped you to understand the concepts you are trying to teach.

4. No worries, I will remove the period separator from my charts if I post again.

5. I learn by reading and looking at attached charts. Some of your points may not have had a chart attached. That is why I asked for clarification of the point you were making. If I missed the chart, I apologise.

6. I have read the thread several times now and plan on reading it several more times. I think what you are teaching is very helpful. Keep up the good work.

Dave

kuky969
13
kuky969  

Trigger

Hi Bubble

nice work from you in this thread . I have learned a lot.Please if you find a little time could you answer downunderwaves questions in post num. 257. I now are not exactly about r/s levels but I think here are more people that would appreciate your answer . I particularly interested question num.1. Please keep up the nice job. Thank a lot.

Peter

XKR1962
60
XKR1962  

Thanks again Bubble!

Hi Bubble and all other S/R followers.

Had a great day using your system on my demo account + 250 pips on numerous trades. My favorite was the GBP/JPY last night ( sold two lots at 249.71, tp at 248.84......nice). It looks like there may be a small selling opportunity brewing as well, what do you think bubble?

Thanks again Bubble.

Files:
chart-gbp.gif 10 kb
XKR1962
60
XKR1962  

Hi Bubble,

GBP/USD was another winner, I bought at 2.0570, the green verticle line, with a potential target 20597, gold line. The price hit 20598 on my chart, job done

With cable being so bullish and the strong support at 20577, and again at 20588. I moved my stop to 20577 and let it run to see what would happen.

I really love your S/R method Bubble. Moving between time frames, and different pairs and indexes you really get a feel for what is happening. I really feel like I am learning here, building confidence to trade for real again in a few months. (with success I hope this time)

Thanks again Bubble.

Files:
gbp-usd.gif 10 kb
XKR1962
60
XKR1962  

I'm an idiot I need to take better notes on my trades. The diagram in the last post is incorrect. I guess that trade was pure luck. LOL. Sorry about that Bubble.

Sosan
32
Sosan  

Gbpusd

HI Bubble,

I am in wating for a second touch on the 2.0590 level for a buy and a TP @ 2.0644.

Any feed back would be welcome.

Looks like XKR is on the a similar tack.

Thanks

Mairangi

Files:
gbpusd3.gif 9 kb
XKR1962
60
XKR1962  

Bubble, another trade I took yesterday with Gold.

Bought on the red verticle line 682.13, target was the high of the previous peak, 684.55. It topped out at 684.80. A nice few pips. .

I hope you don't mind me hogging your thread, but you did ask for me to post other trades.

Regards.

Files:
gold.gif 9 kb
XKR1962
60
XKR1962  
bubble:
Excellent XKR,

you took a better entry than i had ,only managed to get in at 249.62 on the gbpjpy , closed at 248.67 as the trade was only in the direction of the higher timeframe and not with the trend.

There could well be another trade here as the price has broken both peaks and troughs from the top down but lets wait until the chart is right and the price gives us the signal.

Well done again XKR,let me know which other trades you have taken ..

bubble

GBP/JPY.....

Currently 248.46 from 249.43 target hit, you beauty Bubbles