How to use Support and Resistance Effectively - page 23

downunderdave40
156
downunderdave40  

GBP Long Trade

Here is a long trade on the gbp. Entry was a bit late @2.0625. Because we don't have any other historical data to look at decided to try and get 20 pips just before the resistance line @ 2.0648.

Target hit @ 2.0645 +20 pips

Dave

Files:
Sosan
32
Sosan  

Mairangi,

my only thoughs here are that we should exercise caution with the GBPUSD as once again we are trading this beast blind, we have no historical data to find any areas that might temporarily stall the price on the 60 min and 240 although it is still looking strong on the daily.

Just bear in mind when it hits a resistance on one of the higher timeframes its going to come tumbling down.

Hello Bubble,

yes, I am going to keep the stop tight.

I wanted to post this chart to ask for your feedback. I got stopped out.

Did I miss something?

mairangi

Files:
gbpchf1.gif 10 kb
Sosan
32
Sosan  

Bubbling

Assuming you took a long trade from around 2842 ,

Bubble,

I think you mean 2.4820 or did I miss something?????

midnightrider
15
midnightrider  
steveshutts:
Bubble, Thanks very much for the clearer explanation, it makes much more sense when viewing on the 15 min timeframe. I understand where you are coming from now.

Good to see you still have your nose firmly embedded on the grindstone Steve?

You appear to have a knack for unearthing gems amongst the rubble, keep the study (& questions) going. The only way to learn is to ask

Nice thread bubble - anything which keeps the working template clean & tidy is well worth the trouble. I sure hope folks appreciate just how valuable this kinda information really is.

Forget all those wiggly lines & fancy artwork underneath the chart reference! Keep it clean & keep it honest

XKR1962
60
XKR1962  

Hi Bubble and the gang,

I took this trade on gbp/chf, target about 60 pips, but I'm not sure if it was good or just dumb luck again.

I am not sure if the price just barely touching the support line (arrowed) is a valid signal, or does the bar have to close nearer the support line.

I promise not to bug you all day tomorrow Bubble.......Thanks again.

Files:
gbp-chf.gif 9 kb
midnightrider
15
midnightrider  

As you say bubble, it's fascinating how prev zones of activity strongly influence price action when it decides to journey back from whence it came.

Geppy highlighting an interesting return trip thru the prev zones of s&r. Ok, so it failed to clambour back to the stronger level at 248.50 as passed by yesterday, but the secondary level at 247.85 held court late in NY trade & again this morning as players continued to push the Pound off it's pedestal at current highs.

Files:
gbpjpy60.gif 20 kb
gbpjpy240.gif 12 kb
downunderdave40
156
downunderdave40  

Support Area

Hi Bubble,

The first chart is the gbp and it shows price at support level and additional support & resistance lines. It appears price is touching the support line @ 2.0511 for the third time, does price need to break the support line go down and come back up and touch the bottom of the support line @ 2.0511 before we take a short position?

The second chart is a close of of the same price action at the support line 2.0511. The current support line of 2.0511 is only about 40 pips from the next support line at 2.0470 and the next resistance line @ 2.0547. If price bounces and starts t go up when do you take a long position. It seems to me that by the time you decide there is a bounce off of the support line @ 2.0511 it will be half way to the resistance line @ 2.0547. Does there need to be more space between the support and resistance lines to initiate a trade?

Dave

downunderdave40
156
downunderdave40  

4Hr Direction

Hi Bubble,

Here is what is a bit confusing. The 4hr chart is showing long term trend is up, but the short term direction is down. That is why I asked about a short trade. I thought if the short term direction on 4hr chart matched with the current direction we could take a short trade? Did I miss something here?

Dave

downunderdave40
156
downunderdave40  

GBP Chart

Hi Bubble,

I promise this is my last question today. Thank you for your time, I find this very helpful.

I have posted 2 charts to clarify your last post. First one is 4hr chart showing 4hr resistance and 4hr support lines with the price correction down to magenta support line.

The second chart is the 1hr chart showing the lower high and lower low. My question is if I were to initiate a short position have I placed my entry in the proper area (blue box)?

Dave

midnightrider
15
midnightrider  
bubble:
Anna-Maria

welcome to the thread,

just checked your profile and i see you are a fund manager..

Thank you for the welcome.

Ha ha ha, I wish! I'm just a worker bee I'm afraid - not sure I'd be willing to take the pay cut bubble

It's very refreshing to come across a thread such as this. A rare occurance indeed.

I, along with the other contributors & observers, look forward to the continued development of the thread.

It really is fine work & a big plus for those who are seeking a long term strategy model.

Good stuff bubble.