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eaglestar Nov 8, 2015 5:00pm | Post# 21

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Someone asked me via pm how I draw support and resistance lines. I look for the extremes of price. Where are price extremes, and intraday price extremes located?

Recent Euro chart.
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eaglestar Nov 8, 2015 5:06pm | Post# 22

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Past Euro Chart

Where are the pivot points? Where are the price extremes?
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Winston Reed Nov 8, 2015 5:15pm | Post# 23

The beginning of something special here. Thanks Eaglestar!

eaglestar Nov 8, 2015 5:19pm | Post# 24

You really don't need much more than horizontal lines. I'm a little concerned that you already have plans to use "more advanced" methods. Simple is good! At least you said more advanced line techniques, and not just more advanced techniques in general. Actually, the fact that you are focused on lines is a big clue: It means that you've already found your style of trading (or at least you've started to narrow it down). Don't stray far from this. You may run into some difficulty or you may not make as much as you thought you would, and then end...
Thank you mathematician, you are welcome here. I have learned what I know through the forums here and at market geometry. I just want to get the ideas flowing and help each other. I decided to call this forum The One, because we are all collective, all energy, on one planet, under one God, and we should unite together in helpfulness, rather than decisiveness.

eaglestar Nov 8, 2015 5:20pm | Post# 25

The beginning of something special here. Thanks Eaglestar!
Thank you for showing up Winston, you are most welcome here. Please feel free to contribute.

mathematician Nov 8, 2015 5:24pm | Post# 26

I have 3 tips:

  1. I recommend not drawing lots and lots of lines. If you have too many lines, then you could end up in a "paralysis of analysis" situation: Should I enter at this line or the one right behind it? Maybe I should enter at the first line? Is that too low? Should I put my stop behind this line or the next one? Is that one too close? etc. So I try to just have a few lines that are well spaced apart.
  2. Because of the first tip, you are then trying to find the major levels. And to help you do this, try looking at a simple line chart first to get the major zones. Then you can fine-tune the positions of the lines using an OHLC or candlestick chart, maybe even on a shorter timeframe, too.
  3. Sometimes it is helpful to think of them as rough zones rather than precise lines. Of course, it's true that if you can pinpoint the exact price of the turning point, then you can have a very tight stop and trade a very large size and then one winner could make up for many losers. But the downside is that you will have many losers with such tight stops and you'll have many missed opportunities with such precise entry points. So it's something you'll want to experiment with and find a balance that works for you.


eaglestar Nov 8, 2015 5:31pm | Post# 27

I have 3 tips: I recommend not drawing lots and lots of lines. If you have too many lines, then you could end up in a "paralysis of analysis" situation: Should I enter at this line or the one right behind it? Maybe I should enter at the first line? Is that too low? Should I put my stop behind this line or the next one? Is that one too close? etc. So I try to just have a few lines that are well spaced apart. Because of the first tip, you are then trying to find the major levels. And to help you do this, try looking at a simple line chart first to...
Thank you mathematician, I am going somewhere with all this. We will be trading support resistance and trendlines as they form, rather than looking only at the past. That is why I draw many lines to show where price turned in the past, and how it will play out in the future. By only looking at the freshest lines and levels, valleys and mountains, will you be able to see where to enter and exit accordingly. We will do a lot of chart work before we begin to talk about entries and exits. Again you are more than welcome to raise your comments and ask questions. This is interactive trading after all.

eaglestar Nov 8, 2015 5:31pm | Post# 28

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Current Euro possibilities.
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eaglestar Nov 8, 2015 5:42pm | Post# 29

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USDJPY thoughts... If price pulls back where can you enter? What would justify a trade? would it be a good setup or not? These are the questions to begin to ask as you observe overnight and into tomorrow. Price is already in a large uptrend, where will it stop? Can you predict where it will stop without looking into the past?
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eaglestar Nov 8, 2015 5:47pm | Post# 30

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AUDUSD thoughts. What will price do? Will you be ready to see it and make a decision to enter the trade or not?
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pipgame Nov 8, 2015 5:53pm | Post# 31

It can happen something Big from this thread........

nice, eaglestar

eaglestar Nov 8, 2015 5:56pm | Post# 32

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USDCAD possibilities.
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eaglestar Nov 8, 2015 5:58pm | Post# 33

It can happen something Big from this thread........ nice, eaglestar
Thank you pipgame, you are welcome here to post. I am humbled so many have shown up. May we begin to see that price flows, and we can predict the turns....

eaglestar Nov 8, 2015 6:04pm | Post# 34

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Euro... what will price do as it reaches the bottom? Reverse, break restest, or consolidate?
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Siam Nov 8, 2015 7:19pm | Post# 35

Hi,

Nice to see a thread which gets down to the basics.

How much attention are you paying to the fundamentals of the pairs that you trade? In my experience S+R works best when you combine the two. Just putting that out there for you folks to consider.

Cheers.

seahorse Nov 8, 2015 7:43pm | Post# 36

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Euro... what will price do as it reaches the bottom? Reverse, break restest, or consolidate? {image}

I'm also looking for an answer
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CrazyOz Nov 8, 2015 9:20pm | Post# 37

USDJPY thoughts... If price pulls back where can you enter? What would justify a trade? would it be a good setup or not? These are the questions to begin to ask as you observe overnight and into tomorrow. Price is already in a large uptrend, where will it stop? Can you predict where it will stop without looking into the past? {image}
The past for-tells the future, The markets are preordained. Look left, trade right. The secret is there for all to see for those prepared to seek.
Good thread eaglestar. You are close. Refinement will give you target accuracy.

Winston Reed Nov 8, 2015 10:12pm | Post# 38

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What is noticeable on this chart? {image}
Resistance broken then becomes support in uptrend. Resistance holds.
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Winston Reed Nov 8, 2015 10:22pm | Post# 39

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USDJPY thoughts... If price pulls back where can you enter? What would justify a trade? would it be a good setup or not? These are the questions to begin to ask as you observe overnight and into tomorrow. Price is already in a large uptrend, where will it stop? Can you predict where it will stop without looking into the past? {image}

Currently price is high. A reasonable retrace seems prudent. The 132.00 looks good.
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Winston Reed Nov 8, 2015 10:40pm | Post# 40

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Euro... what will price do as it reaches the bottom? Reverse, break restest, or consolidate? {image}


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