Using support & resistance to help understand things
what an exciting time in the markets. If you listen to the fundamentals, news and all the so called experts it's scary, but thanks to bubbles teaching it puts everything in a whole new perspective for me.
Look at this diagram for the Dow. Daily time frame. It was interesting watching it stall at various old support levels, break through and head down to the next.
I wonder if that last hammer is the end of it, or will it go down to the next major support level, 12250. If it closes below that I guess the next stop is 11950 ish.
Thanks again Bubble.
Just another observation.
The power of SBR and RBS lines
Last chart for today, but I found this very interesting. I bet Bubble knew where the dollar was going yesterday.
Look how the resistance becomes support lines stopped the huge movements on the Cable. Coincidence.........I don't think so.
Looking at the recent peak I notice that it's higher than it's predecessor, this must mean something and I guess only bubble knows what will happen. Start of a sideways channel. Any ideas anyone? Oh and I guess if that last candle closes below that purple support line then the direction is down.
Please come back Bubble.
I would be looking for a bounce off the purple line to go higher. But, if the purple line is broken...you may get a change in trend direction if the red support line is touched, price comes back up and retests the purple line (which now becomes resistance) and heads back down. At least that is the way I read the Martin Pring Document.
Buyers ..buy at support
Sellers...sell at resistance
Wow this is SO interesting for me thank you guys,since I'm kinda newbie in trading.I use those indicators posted already to make a manual system for intraday use.
Quick look at your chart long term is definately bullish. The medium term bearish. So in my opinion you would be looking at short entries selling into resistance. After the bounce off that strong support you have to say more weakness is expected.
Why not post a chart on the 4hr and 1hr.(i would but i can't upload my oanda, if anyone knows how...) draw support and resistance and we all can have a look at it. See how you could play it according to whats been learnt on this thread.
It would be a real shame if all the effort done by Bubble goes to waste. You can't expect to be spoon fed if you want to be successful in trading, you have to put some effort in. Not having a go at you by the way this is directed at everbody.
thanks for the reply. It will be interesting to see what happens.
Keep posting charts and theories up for debate folks, it's the only way we will learn.
Thanks again Dave.
thanks for your reply, very helpful. I have posted the 1hr and 4hr charts. They indicate a couple of nice trades. Hindsight is a great thing, I missed them both. lol.
If I have got it right they do indeed show the new resistance to be at about 19873, the previous support level, as shown. Fascinating.
Come back bubble. Have a great Sunday folks.
You can see from way back on the dailys that level you pointed out is strong
res-supp. Well spotted. There was another one a few days before at the 2.0155 level that would have been a great play.
anyone know how i can upload some Oanda charts???