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Simple price action trading using s&r and reversal signals from the swing points. - page 2

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Tahir Sultan
137
Tahir Sultan  
vertigo1985:
Thanks tradeknowhow for the quick reply,

Have you tried this method on lower timeframes too ? like 3 minute or 5 minute ? how the results get affected on moving to lower timeframes ?

Can you elaborate some more on 'relevant S/R levels' ? are you looking to enter when the reversal signals are formed after breaking that level or you may enter before that level too ?

Regards

Hi vertigo 1985)No i trade 4 hour and above timeframes only.Because the price action signals and the S&R levels on bigger time frames are more reliable.Smaller time frames are full of noise and the S&R levels and PA signals are less reliable over there.Because the bigger the time frame is the more information is stuffed into it.Lets say 48 candles on a 5 min chart will form just one candle on a 4 hour chart.

Moving to lower time frames using this price action method will get you no where because on lower time frames you will have more false breaks,fake signals, less important S&R levels.All of those factors will lead you to losses and frustration.

From my experience i can tell you the best trading can be done on 4 hour and above time frames.I trade on 6 bigger time frames. Intraday time frames(4H,8H,12H) D1,D2 and on occasions i trade on weekly.

Now i am coming toward your question regarding support and resistance levels.S&R levels are simply the market turning(reversal) points.The more time price respected that same level the more stronger that level becomes.Support is a level where bulls(buyers) take control and push the price higher and resistance is a level where bears(sellers) take control and push the price lower.Now you are getting confused with the breakout strategy and my strategy is just about trading reversal signals from the swing points.For your convenience i am throwing a chart where i put all graphical representations of your answers.See in a chart how a bearish engulfing bar formed at resistance from the right swing high area reverses the price in the downward direction.Hope that gonna help)

Thanks

Secure Trading

Files:
naveen gaur
7
naveen gaur  

Thanks for the detailed reply, cleared everything .

I agree, there is more noise in smaller timeframes and higher timeframes are more reliable.

One more question, do you look for re-entry too ? like if you get stopped out and price shows weakness again ?

Sorry to bother you with all these questions, hope you don't mind .

Regards

Nike Williams
9
Nike Williams  
tradeknowhow:
Hi vertigo 1985)No i trade 4 hour and above timeframes only.Because the price action signals and the S&R levels on bigger time frames are more reliable.Smaller time frames are full of noise and the S&R levels and PA signals are less reliable over there.Because the bigger the time frame is the more information is stuffed into it.Lets say 48 candles on a 5 min chart will form just one candle on a 4 hour chart.

Moving to lower time frames using this price action method will get you no where because on lower time frames you will have more false breaks,fake signals, less important S&R levels.All of those factors will lead you to losses and frustration.

From my experience i can tell you the best trading can be done on 4 hour and above time frames.I trade on 6 bigger time frames. Intraday time frames(4H,8H,12H) D1,D2 and on occasions i trade on weekly.

Now i am coming toward your question regarding support and resistance levels.S&R levels are simply the market turning(reversal) points.The more time price respected that same level the more stronger that level becomes.Support is a level where bulls(buyers) take control and push the price higher and resistance is a level where bears(sellers) take control and push the price lower.Now you are getting confused with the breakout strategy and my strategy is just about trading reversal signals from the swing points.For your convenience i am throwing a chart where i put all graphical representations of your answers.See in a chart how a bearish engulfing bar formed at resistance from the right swing high area reverses the price in the downward direction.Hope that gonna help)

Thanks

Secure Trading

I have to disagree with you slightly.

first of all, all trend and market movement operates on the same degree. It can be noisier in smaller timeframes but patterns happening on ALL time frames are the same. You will see same picture on H4 charts to 10sec tick charts. Because market psychology is same in all degrees of trend.

Using H4 will only give you more pips compared to smaller timeframe. But its still the same because you will use also use bigger stops.

EX. on H4 chart, Stoploss = 60 pips (below/above swing), TP = 80 pips, On M5 chart, Stoploss = 15pips(Below/Above swing) Tp=25 pips.

It depends on your market experience, trading style and how you react on what the market gives you. I personally trade H4 and D1 charts, but i also trade on M5 charts as they give more juice to my trades

Bigger timeframes are not the only things that you need to look on to get decent profit.

Also, i have to agree that PA is important. but not purely PA. because we will need confirmations. All great traders have an arsenal tool that they use. Some indicators can help your trading and can really help. They are invented to read past price action to help you decide / confirm your decisions. Pure PA alone wont make you consistent in trading, you need someting to quantify data and base from it. Your still young and will learn a lot of things.

Tahir Sultan
137
Tahir Sultan  
nike wiliams:
I have to disagree with you slightly.

first of all, all trend and market movement operates on the same degree. It can be noisier in smaller timeframes but patterns happening on ALL time frames are the same. You will see same picture on H4 charts to 10sec tick charts. Because market psychology is same in all degrees of trend.

Using H4 will only give you more pips compared to smaller timeframe. But its still the same because you will use also use bigger stops.

EX. on H4 chart, Stoploss = 60 pips (below/above swing), TP = 80 pips, On M5 chart, Stoploss = 15pips(Below/Above swing) Tp=25 pips.

It depends on your market experience, trading style and how you react on what the market gives you. I personally trade H4 and D1 charts, but i also trade on M5 charts as they give more juice to my trades

Bigger timeframes are not the only things that you need to look on to get decent profit.

Also, i have to agree that PA is important. but not purely PA. because we will need confirmations. All great traders have an arsenal tool that they use. Some indicators can help your trading and can really help. They are invented to read past price action to help you decide / confirm your decisions. Pure PA alone wont make you consistent in trading, you need someting to quantify data and base from it. Your still young and will learn a lot of things.

Hi nike williams) First of all as we know that in trading there are several ways to skin the cat.I am glad if you have any success trading on the smaller time frames but that just not good for my method.For consistency and high probability of success i rely on the price action story on the higher time frames which is far more reliable.A time frame tells us about how price reacted over a certain time period but let, the S&R level on a 5 minute chart is far less reliable than on the daily chart.Whatever risk reward a small time frame 5 minute is offering you it simply isn,t worth if i am going to loose majority of my trades.

As you said it depends on our style,way of approaching and experience we can,t say someone wrong but only if he or she is really a successful consistent trader.We can say in trading there is no right or wrong.It,s all about perfecting your method,set up your mind and believe in it.

I am a pure 100% price action trader who trade using a raw price.I seriously discourage the use of indicators because they are confusing and lagging.Indicators are all made up of the price behaviour in the past then we should take off all the junk from our charts and start reading the pure price.Reading the pure price using the candle sticks and patterns will give us more insights than just relying on a stupid indicator like RSI who advise us to buy when it,s below 30 and sell when it,s above 70.I used indicators in the beginning and i blew up all my account. If it would have been that easy to make money in trading using indicators then everyone should be a billionaire.It,s a simple fact more than 50% of traders loose money in trading.Most people are not consistent because of the indicators.Some people use indicators as well as they also rely on price action and it works for them and they think it,s the indicator which is responsible for their successful trades and they keep using indicators.

Well yea i am still young and 23(if you are talking about my age) but i know everything about my method and i have a complete faith in it and it works for me.I have been through whatever you are talking and thinking about.

Wish you success

Tahir Sultan
137
Tahir Sultan  
vertigo1985:
Thanks for the detailed reply, cleared everything .

I agree, there is more noise in smaller timeframes and higher timeframes are more reliable.

One more question, do you look for re-entry too ? like if you get stopped out and price shows weakness again ?

Sorry to bother you with all these questions, hope you don't mind .

Regards

Can you please elaborate your question in some more detail because i am not getting it?

And no problem you can ask me thousand times what ever you wanna ask and i will not feel bothered at all because i created this thread to help out other people.

Nike Williams
9
Nike Williams  
tradeknowhow:
Hi nike williams) First of all as we know that in trading there are several ways to skin the cat.I am glad if you have any success trading on the smaller time frames but that just not good for my method.For consistency and high probability of success i rely on the price action story on the higher time frames which is far more reliable.A time frame tells us about how price reacted over a certain time period but let, the S&R level on a 5 minute chart is far less reliable than on the daily chart.Whatever risk reward a small time frame 5 minute is offering you it simply isn,t worth if i am going to loose majority of my trades.

As you said it depends on our style,way of approaching and experience we can,t say someone wrong but only if he or she is really a successful consistent trader.We can say in trading there is no right or wrong.It,s all about perfecting your method,set up your mind and believe in it.

I am a pure 100% price action trader who trade using a raw price.I seriously discourage the use of indicators because they are confusing and lagging.Indicators are all made up of the price behaviour in the past then we should take off all the junk from our charts and start reading the pure price.Reading the pure price using the candle sticks and patterns will give us more insights than just relying on a stupid indicator like RSI who advise us to buy when it,s below 30 and sell when it,s above 70.I used indicators in the beginning and i blew up all my account. If it would have been that easy to make money in trading using indicators then everyone should be a billionaire.It,s a simple fact more than 50% of traders loose money in trading.Most people are not consistent because of the indicators.Some people use indicators as well as they also rely on price action and it works for them and they think it,s the indicator which is responsible for their successful trades and they keep using indicators.

Well yea i am still young and 23(if you are talking about my age) but i know everything about my method and i have a complete faith in it and it works for me.I have been through whatever you are talking and thinking about.

Wish you success

ok i got you.

but your method is only one method. good that it works for you.

I trade using D1 and H4, also with 5M. but found 5m based on my style to be OK.

naveen gaur
7
naveen gaur  
tradeknowhow:
Can you please elaborate your question in some more detail because i am not getting it? And no problem you can ask me thousand times what ever you wanna ask and i will not feel bothered at all because i created this thread to help out other people.

what i mean is suppose just after entry in next candle your stop loss gets hit but the candle then turns out to be a pin bar ( or giving signal in your direction) then you consider to enter again ?

Tahir Sultan
137
Tahir Sultan  
nike wiliams:
ok i got you.

but your method is only one method. good that it works for you.

I trade using D1 and H4, also with 5M. but found 5m based on my style to be OK.

I never said i got the one and only working trading method )

Tahir Sultan
137
Tahir Sultan  
vertigo1985:
what i mean is suppose just after entry in next candle your stop loss gets hit but the candle then turns out to be a pin bar ( or giving signal in your direction) then you consider to enter again ?

First we should wait for a candle to close .Then only enter on the break of it,s high.A price action signal is no longer a vaild one if it,s high has not been taken out.If its low where your stop loss is taken out the setup is no longer a valid one.

harrymonic
290
harrymonic  

good,

i'm also a young trader. i'm 24. this strategy is good specially if enforced with right harmonic patterns. If you don't use indicators like i do, harmonics ratios and geometry would be the best aide.

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