How to use Support and Resistance Effectively - page 31
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Bubbling
mairangi,michel,
michel is correct ,to confirm the trend is over the price would have to make another lower high and then break the previous low to confirm the trend is broken ,at this point it is tempting to take a short but i can tell you now that that it is best to wait because the price will come back to retest shortly after it breaks the previous low.
bubbleHi Bubble,
thanks for that. I have been wrestling with the Range subject over the weekend. Now something has clicked. Thanks to Michel too, well spotted.
No, I am not tempted to short it!
mairangi
Not Sure About this One?
Hi Bubble,
This is a short gbp/yen position and I am showing a 15 min because it's easier to follow my question.
Ok..we have higher highs and higher lows price tops out @ 241.74. Price starts to fall and we have lower highs and lower lows. If I understand what you define as the range then the grey shaded area is the current range, is that correct? Even though we are making lower highs and lower lows the up trend is still in place until the price action moves down into the current range and we get a peak and trough within or below the gray shaded area? Is that correct? I wasn't sure if I should draw the pink support and resistance lines because we hadn't broken the support line @ 240.20 but I went ahead and put them in and I saw that price had several touches to the SBR line @ 240.75. Now here is were I got a little confused. I entered a short position on the candle in the blue circle @ 240.51. price didn't move much and actually went up and stopped me out at 240.98 (red circle) for -47 pips. Was my initial stop placed correctly? Looking at this in retrospect since price never formed a lower low and lower high in the gray area the up trend was still in effect and I shouldn't have taken a short position to begin with, is that analysis correct? Ironically enough a few bars later price dropped like a rock but it still hasn't formed a lower low or lower high yet in the gray area.
I guess bubble will confirm your querie in due course, but I've been reading the mid term trend as still bearish, with the recent 7 trading days activity merely cutting out a range below 243.0
Until price breaks back beyond that fulcrum, the mid term trend is down.
Failure for price to hurdle back beyond 241.30 this morning rendered this thing suspect to continued downside. The lower high @ 241.0 (with that candle print) was good enough really.
But that's just my take on current events - yours may well be entirely different!
PS: Forgot to highlight the lower (paring) profit levels - 1st watch level: 239.70, 2nd level: the bottom of the range @ 239.0
I guess bubble will confirm your querie in due course, but I've been reading the mid term trend as still bearish, with the recent 7 trading days activity merely cutting out a range below 243.0
Until price breaks back beyond that fulcrum, the mid term trend is down.
Failure for price to hurdle back beyond 241.30 this morning rendered this thing suspect to continued downside. The lower high @ 241.0 (with that candle print) was good enough really.
But that's just my take on current events - yours may well be entirely different!
Spot on as usual Anna!!!
I think the GBP/JPY was a hard one, as Anna says, it was really just cutting out a range on the hourly, not clear direction, whereas cable gave a clearer direction once price broke support at 2080 and there was the retest.
I think the GBP/JPY was a hard one, as Anna says, it was really just cutting out a range on the hourly, not clear direction, whereas cable gave a clearer direction once price broke support at 2080 and there was the retest.
Yes, agreed!
I echo bubble's comments...nice trade
I would imagine you're revelling in this thread huh
Getting the hang of this now
I've been watching the indexes for a change of direction, low and behold Bubbles S/R system gives us the signals.
Missed The Boat
Hi Bubble,
Looks like I really missed the boat on that last trade. Still have so much to learn. Take a look at my gbpyen 15M chart. I have re-labeled it, does it look correct now. Since we've broken the previous high @ 239.84 (gray area) and established a High @ 240.59 (blue box) are we looking at a possible trend change if we get a bounce off the 239.84 level? Have I labeled the low and high correctly in the blue box since it's the start of a possible up trend?
Dave
Dave,
Things are a lot harder on those timeframes, i still have a lot to learn myself but i would suggest switching to a longer timeframe to identify trends. You can monitor more currencies as you have more time to think and the trends are more significant.
Nothing to stop you zooming into the 15 to identify touches, but i would stick to 60min + for trend identification. The shorter the timeframe the harder and faster it can be. Just my opinion.
Especially on that wild Gbp/Jpy, it will eat you alive on the 15 min chart!!
Steve
Short trade setup on the Swissy. Lets see how this pans out!