The real how to use support and resistance effectively
Good information bubble. I would like to know how you trade when a support becomes a resistance and resistance becomes support? Could you post something about that?
looking forward to your charts dude.
Good information bubble. I would like to know how you trade when a support becomes a resistance and resistance becomes support? Could you post something about that?
During an uptrend ie higher highs ,higher lows the previous higher high is commonly used as the point where the retracement is expected to move to ,this concept of old resistance becomes new support is just a small aspect of how a trend naturally develops , to find true resistance we must refer to the left side of the chart and previous areas where the price stopped moving up.
lets not make something so simple complicated ,infact i do not have the time now to post charts and i have said all i wish to say on the matter ,its up to you to find a method of identifying the peaks the troughs or waves or whatever you wish to call them and there you will find the answer to finding areas of support and resistance.
bubble
Bubble, this information is absolutely gold. Trading should be kept as simple as this. Thanks for the information.
If and when you get a chance could you post a chart example that shows how you do waves and waves within waves. How do you identify start of the wave? Example chart of this information will be perfect.
thanks.Hi
FormualOneFan,
i really appreciate it when someone like yourself comes along and can really see the value in the information i post , i am a serious trader and while i have posted various threads on trend trading and support and resistance and have one of the most phenomenal trading methods not just in my opinion but also from feed back from various traders who have had the sense to stop playing with eas and crazy indicators and join the real world of trading using technical analysis by taking the course i have offered in the past,i am not about to publicly reveal the trading edge that has led me to this point .
I am saying in my previous post to anyone who is serious about trading ,you should find a way to learn the points i refer to and you will go along way to changing the way you view the markets and trade ,there is a structure to any market and its really all about understanding that and using various techniques to view that structure and trade it,yes its not always right but its right enough times to keep us ahead of the game.
bubble
talking about support and resistences...
there are a special kind of supports and resistences in the eminisp that i dont know how to calculate them but they are very exact...someone knows how to calculate?thanks
Trading
Bubble
This is great. Thanks for your time and sharing.
Sean.
Trend and consolidation and support and resistance are just random paterns and have nothing to do with buyers or sellers.
You don't need to take my word on this. I had also difficultys to believe this. Even after 10 years trading.
But sudenly when I got this spreadsheet then it convinsed me that their is no such thing as support and resistance that could be used in a way that it is giving you an edge more then 50% reliability or flipping a coin...
Open the spreadsheet and turn macro fuctions on. Push on the flip a coin button and see if you can start to recognize trading patterns as support and resistance and up trends and down trends in this random price generator.
I certainly did and made even some images from it and placed them also in the zipfile. I even saw head and shoulder formation with retesting of neck lines.... etc....
BTW no buyers and sellers were involved in that spreadsheet 
Friendly regards....iGoR
PS. I gave already many webinars and showed this zipfile to people who are convised about chart paterns. This zipfile was a real big eye opener to them and they don't think the same way anymore after they saw it.
Seems we have some confusion here.
One trading way is pattern trading. And another and completely different is support and resistance.
Pattern trading is based on line break being the line support or resistance. There is lovely work of Arthur Merryl on late 70's about this. He identified 12 common patterns as possibility trades. Then there is the subjective factor becuase you can have many patterns as trader's eyes.
Support and Resistance is based on values/figures and is always an horizontal line or level. Higher highs and lower lows works perfect, as well daily high or lows, etc, combined with some indicator to measure the strong movements.
Them when combined with market knowledge about tips and tricks, this technique works perfectly for timing. And I recommend to anybody learning trading to time his trades using support and resistance.
Is the best way to stay without being butchered before the full move is performed.
This is a common error of newcomers: entering too soon and exiting too soon. Mostly by fear.
Once you learn the phases of test, broke, retest and real move you got the timing to enter and exit. Then you'll learn about fake moves and how to prevent being cached by pit traders.
Once here, you have the knowledge of sit and wait. You will forgive bands, OB/OS, pivots or any. It's only you with bar chart.
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ok here we go , some of you may remember the original thread i started some years back and some of you may remember the threads i started about trend trading, well the clue to idenfifying correct areas of support and resistance are previous peaks and troughs to the left of the current trend or market direction ,we use right side analysis for trend and left side analysis for s/r.
Some of you believe that in an uptrend the previous higher high is resistance and in a downtrend the previous lower low is support , this is one of the biggest mistakes traders make , think about it, its too easy if it were that simple we would would all be millionaires ,just wait for the break of a swing high /low in a trend and bank the money.
So we have to think a little out of the box here and try to understand the concept of trend . We know trends in forex are created by major institutions buying and selling large volumes of currency at levels they deem a currency to be over or undervalued for the purposes of their respective economies ,in truth no one except the institution creating the trend can know exactly at what level the trend will end but we can take an educated guess in that it follows that previous peaks/troughs to the left of our chart are areas where the institutions previously bought and sold as they viewed those areas for whatever purpose to be over/undervalue.
This does not meant that it always works because support and resistances are both respected and broken at various times but it is more common for them to be respected.
So it follows that in an uptrend we look to the left of our charts for peaks where the market previously sold off to a new low for resistance and in a downtrend we look for areas where the market bought in to a new high for support .
How you identify the peaks and troughs to use is down to you but i can tell you that the better the method you have to do this the better your success rate will be at identifying s/r.
I will post a couple of charts later but i hope such a simple concept clears up all the confusion created and thats it really no long thread necessary just a very simple concept.
bubble