i think it should of said 2.4820 but anyway it was a difficult one to judge and not a situation i would have traded ,as i have said many times if it doesnt look right leave it.
The markets have moved on, lets move forward with them.
OK thanks for that clarification Bubble.
Now I can work on clarifying my next questions.
I would like to know more about your money management rules and also "how" the price action defines your stops.
'When a support area is established ,what i think you are asking me is how far can the price come into that support area .
Using the previous swing down and looking at the peaks and troughs within that swing will give you the answer you are looking for.'
So just so I am on the right track: That means looking at the 'intra' swings on a lower time frame ? If I am looking a the big picture on the 4 hour, I might use the 1 hr to see the 'intra' swings within that 4 hour swing? Then figure out possible entries ?
If I am assuming wrong that your stop might be below the range, can you make a comment on how you determine where it is.
Again Bubble, great thread. Have felt a surge of inspiration, since I started to read it. Have a good weekend and a good trading week next week.
The Ultimate Re-read!
just finished re-reading the entire thread for the 4th time.
With placing trades using s&r this past week and all the different trades and questions posted by evryone I am amazed how everything becomes that much clearer on the re-read. You have already covered so much.
It really is good stuff. Many of my questions that have been brewing have been answered with this last read. Also the stevehutts stuff was a gem.
Good thing he perservered with questions untill he understood!
Thanks once again Bubble for great teaching........and patience.
this thread is about s/r if you wish to learn about money management then there is plenty of free information out there.
As for price action defining stops ,it is common sense to place them below the nearest peak or trough from your entry point.
Read the post about range and the answer i gave to stevehutts with a detailed explanation and a pic.
good thread... worth reading..thanks!
Improving my skills.........
Bubble, firstly my sincere thanks for sharing your years of trading expertise so selflessly with everyone. Secondly, for "staying in the tracks" amidst many attempts of people not in the know to divert you. Well done.
I have learned a lot from traders like you and although I am fairly successful with my XO-method which is also based on the H1, your method can just improve my trading exponentially, but more importantly, it can reduce the stresslevels even further and that alone is worth a lot.
Attached is my first attempt at trying to understand what you are teaching and it is this morning's GBP/USD. Would you mind commenting on the trade not necessarily my chart, but I want you to tell me if my chart is correctly constructed please. I used the Magenta for the Highest TF (Day), the Gold lines for the H4 and the Blue lines for the 60M (H1) chart R&S.
What I would like to know is: 1). do we only look at the chart open in front of us, or do we go back as far as possible to identify the R&S lines as I have done?
2). Where would you have placed the Support line this morning?
3). Where is your immediate Resistance? Mine is @ 269.
Thank you for looking and replying to my request.
A last question please........
In the attached chart, I have drawn a WHITE-horisontal line where I thought there was a Resistance as the price bounced back up before returning or is that not seen as a level of potential resistance?
This morning that level was tested, but not broken.
Is this an "over-kill" on my behalf as I could not find the corresponding R / S on the left hand side.
GBPYEN Short Trade
Here's a trade from earlier today on the gbpyen. Identified possible short on 1 hr chart and then used 30 min chart for entry. Price rises up to the resistance area @ 241.00 and touches twice. Entered @ 240.44 when price broke the low of the bullish bar indicated by the red arrow. Exited position @ 239.30 for 114 pips.
How did I do on this Bubble?
Wonderfull, great trades. Actually it's a wish come true for me. That's what I was waiting for to see some of your live trades. This helps a lot at this stage. It will be highly appreciated if you can continue posting these trades whenever you feel like it.
Thanks again for all the good work.
bubble: On the daily chart of GBP/USD there is resistance becomes support from July 3,4,5...How relevant would this be for todays low? Or is it just coincidence?
The 4hr chart seems to be in a downtrend now...is this correct? Does it have to exceed the peak from 7/12 2.0363 to resume the uptrend?
PS. I really think this thread is great and I want to learn much more!!