How to use Support and Resistance Effectively - page 27

fx2007
10
fx2007  

Bubble

Thanks for posting the trades last night.

When you post your entries, please could you add where you placed your initial stop and the reasoning for it's placement. Perhaps also how you trailed your stop as the trade progressed. I am sure you will agree that the way you place / move stops can have a huge difference to your success.

I think it would be a good idea for everyone else to post this additional information as well, when showing your trades. Makes it more meaningfull.

Here is a good recap on S/R

NQoos - Price Action by Buffy

mietectec
35
mietectec  

Hi bubble,

Thank you for your effort in this very educative thread. I've been reading and learning so much through this. Here is my attempt to see if I understand about SR correctly. Please correct me if I made mistake here.

At the moment, I have question about what the price is doing and how long a level can be valid as S/R. The 2.0281 line was fine to act as support and resistance. But the last 10 bars price is wobbling around this level, and no longer being exact. So, what would be your consideration in this specific circumstances ? Is 2.0281 no longer a valid level, and should I draw new S&R around this small range ?

Thank you in advance

Matt Edmonds
18
Matt Edmonds  

NZDUSD H1 Setup

There is an excellent example just formed on NZDUSD H1 chart. Previous support turned resistance around 0.7720, which we are currently sitting at.

Matt Edmonds
18
Matt Edmonds  

Live trade example

I am now short NZDUSD at 0.7722 with a 0.7740 stop, an excellent risk/reward scenario.

Matt Edmonds
18
Matt Edmonds  

Thanks for clarifying Bubble. Was a great trade anyway, just closed for +114 pips.

downunderdave40
156
downunderdave40  

Confused!

bubble:
Trade from today GBPUSD

HTF confims the uptrend with rising peaks and troughs.

bubble

Bubble,

I am a bit confused about the confirmation with HTF charts. I see you've posted several 15 minute charts, is that just to show us examples of the price action or are you using 60 min chart for confirmation of the turning point on the 15 min chart?

My understanding of what you are teaching (very simplified version) is as follows, please correct me if I am wrong here:

1. Identify possible turning point (S/R) on 60 min chart by price action.

2. Go to 240 min chart (HTF) and confirm if the same support/resistace area is on the 240 min chart.

3. Once confirmed on the 240 min chart drop back to 60 min chart wait for 2nd or 3rd bounce off the S/R line and then enter when you have confirmation of the reversal with a trend following indicator.

Thanks for your feedback on this.

Dave

downunderdave40
156
downunderdave40  

Thanks Bubble

bubble:
Dave ,

you are absolutely right in your post above,however s/r can be traded from any timeframe using the same principles ,however the smaller the timeframe the more difficult it gets .

The trades i have posted are from the 15min with confirmation from the 60.

Although 15/60 is not my preferred combination due to the higher stress levels involved from more frequent monitoring, there where some great trades which carried a high risk reward ratio and visually were worth posting for you to learn from as the principles of s/r are the same no matter which combo is used.

bubble

Buble,

Thanks for the explanation. That makes it much clearer for me to understand. I had another good day on Tuesday using the S/R methodology +46 pips.

Again...thank you Bubble...keep up the great work in this thread.

Dave

emas
24
emas  

Nice thread i like this lesson

i finish read this thread 2 time

now it time to practice

but i see a confuse which one is a valid setup....

or it's a sideway trend

bubble can you comment my chart

Files:
snr.gif 14 kb
snr2.gif 14 kb
steveshutts
49
steveshutts  

Hi Bubble,

Just going to post a few examples i have spotted to help me clarify my understanding of this topic.

I have attached some screenshots of one of your recent cable trades. Sorry if i have asked you this sort of thing before, but i was just wondering exactly what gives you the heads up to take the plunge.

We have identified our trend change on the 1hr and we wait for price to come down to our recognised support zone. We have one touch, okay, heads up, one more and we are long.

Now, i remember you saying that you do not like candle patterns, as the market makers know these. But there must be some sort of indication around the second touch to make you feel that price will bounce? In this instance, we could see from the bars that price was finding support again and so that was out entry. Especially when we got the bullish engulfing candle, where we could have entered long on the close of that. I just wondered if you just went long when price hit that level again, regardless of the candles.

My next post will give another recent example i found to ensure i understand.

PS If the last 2 charts are too big could you let me know, and sorry about the clocks!!

steveshutts
49
steveshutts  

Ok, here is an example of a Eur/Chf trade from yesterday. The 4 hr trend was broken to the downside and price came up to old support that we have identified, that would hopefully hold as resistance.

From the next timeframe down, the 1 hr, it really is not clear that price hit that area, fell, and then hit it a second time. However, if we scroll down to the 15 min chart, we can see that price clearly hit a second time and that was our signal to sell, with a clear target of the 6426 area.

Hope i am on the right track now Bubble??