Disliked{quote} Hers an interesting thread for S/R Its fairly short and I believe they are referring to dreadding at some points in the thread, as the system the OP is using is similar to what were doing Support and Resistance Method - Pharley http://www.forexfactory.com/showthread.php?t=551541Ignored
That is an awesome find. I briefly read the 1st page and the approach is simple and true. It is a no stress approach... I noticed he said he missed some of the re-entries. An EA could easily be built to do that ... hec we already have the patterns he calls out and to get the levels, hec we already do that, so creating an EA for the H4 would be eazy peazy...
Anyhow that is another project for the near future LOL.
Ok so once I have these supp/resistance level do we treat them just as the average daily range levels??
The EA when it used the average daily range will do this.
1. calculate the upper and lower average daily range for the day.
2. determine how close the signal candle close is to either level
3. only allow a trade if there is at the least a 1to1 ratio from the signal candle close to any of the levels (it depends on which what the trade is too).
So how is this for an attempt to use the higher level Support/Resistance levels.
1. EA goes to higher TimeFrame and looks to see if price has hit a level and bounced. (we can use HA candles/Candle patterns right at the levels)
a. EA then remembers where the bounce happened (say it's a bearish bounce).
2. EA goes down to the entry time frame and looks to see of price has hit another supp/resis level from a lower level say H4.
3. If 1. and 2. are bearish then the EA considers the trend down and takes short trades at the entry level (Say 15min).
4. If the new trade found in 3 is less than 1to1 from a support from the H4 level then no trade.
You see I am combining two things.. trend determination and trade control using supp/resis from next lower TF from higher TF.
comments/ideas?? Does it suck! LOL ??
Right now if u use the average daily range the EA will look to see how close it is to either upper or lower average daily range. The EA makes sure that you have at the least a 1to1 distance to any of these levels. Would the EA do something similar to these support levels?
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