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Price action to determine key levels

  • #21
  • Sep 15, 2018 3:41pm Sep 15, 2018 3:41pm
I thought that my thread did not interest anyone . So I stopped it.
But few persons seem interested so I wil try to post regulary but not often.

Probably my chart will mainly concern EUR USD but if you want another pair please tell me.

For beginners:

1/ Learn DOW law ;
2/ learn PA
3/ learn to draw horizontal support resistance on W D H4 H1 or M30 according 1/ and 2/
4/ at the end the goal is to trade Daily or H4 trend with H1 or M30 OR M15

I am interesting to Watch your chart if you want to post.
iF you look below my weekly view perhaps trading seems a little bit more easier. not enough yet for take a position but we have a better view
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  • #22
  • Sep 15, 2018 3:58pm Sep 15, 2018 3:58pm
if we zoom on H4 we see the area where we have to trade
we have to trade the range as long as it holds
but given the previous chart we expect that the down of the range will break .
the ideal is to short the upper of the range if we come back at this level next week

next step is H1/M15
we will see it later

if we zoom on H1 chart we perfetly see the dow law with the HH or LL or LH or HL. all makes sense !

For my part I think that it is very important to understand the price movement and in which environment the price move.
If I take a position I have to understand where and what should be the movement of the price if my analysis is good.
If price does not move as expected I close my position.

bye
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  • #23
  • Sep 16, 2018 1:08am Sep 16, 2018 1:08am
finally the biggest difficulty for everybody is to find/draw high and low.
Regulary people ask if exist some indicator which help for drawing them.

For example do you think an indicator could help you easily to draw H and L like on my EURUAD H1 chart below
if yes after you easily set trend line
and you can anticipate the break of horizontal level or trend line level.

trader on ATA Strategy on EURUSD only may use it. Moving average is LW54 wich uses ATA

Before giving you the answer I would to have some reaction from you if you think it is possible to draw it easily and how
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  • #24
  • Sep 16, 2018 3:04am Sep 16, 2018 3:04am
Hi 4experience ! Nice thread you started.

I think there is a easier way to draw. I recommend Erwin Becker's S/R indicator. It creates SR based on zigzag and price action.
1st shot is with only D1 SR activated and 2nd is with zoom and with H1&H4 SR activated. On the left is a CSM (currency str meter)

An effective way to use this tool is to wait for a price to hit a resistance, price returns, usd becomes top 3 in strength (value above 5.5) and eur falls on the last 3 positions, with a value under 3 preferable, put SL above starting point and tp is up to you. As a bonus, MACD was div and stoch stayed on 95 level, confirming resistance.

The two key things are, support/resistance and CSM. The rest is for confirmation bonus.
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  • #25
  • Sep 16, 2018 3:19am Sep 16, 2018 3:19am
thanks a lot Mitzescu for your input.
I did not know Erwin Becker. I will look at it closer.

My way will help you to identify the movement of the price High and Low and will help you to identify if we are in trend, in rangeor a triangle.
I wait another input from traders before to give my tip
  • #26
  • Edited 3:39am Sep 16, 2018 3:29am | Edited 3:39am
so many levels horizontal and vertical s/r..
Way too confusing. Then add in mulipal time frames..
My brain explodes...
This system is missing so much..
Yet S/R is way over complicated.

S/R is a tool But not an entire system..
Good luck!

People looking for S/R indicator...
Don't be so lazy.. Draw it yourself.
You will learn so much more about it
when you personally draw it and take ownership of that line on your screen!
Trading is not about indicators telling you what to do.. Its about a deep understanding of the market your trading.
IF you want a deep understanding of S/R, you must draw your own levels.. And really try to find out why some work and some don't.
This is a lot of work.. and a lot of time to invest.. It will pay off!
The only system that will work is one designed by and for yourself.
  • #27
  • Sep 16, 2018 3:34am Sep 16, 2018 3:34am
Here are a bunch of shots with JPY / whatever currency hit a resistance and got strong on 30.08.
To point of this is not to get tricked when a pair like EJ is going up, MACD and stoch make some divergences, tricking people into thinking that now is the moment to sell. You can see on all shots how JPY acted. Whenever EJ made some div before 30.08, on all other pairs, jpy did not got stronger it just ranged or made a small correction. The most powerfull GBP related to JPY who has some news related to brexit and got really strong and did not correct at all before 30.08.

These are H1 shots, on D1 (long run), things might be different. So i think it depends on someones trading style.

I might say. "Hey look at that engulfing bear candle on H4 or H1" and the response might come. "I don't care, from my D1 perspetive this is just a correction, the trend is bullish"
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  • #28
  • Sep 16, 2018 3:40am Sep 16, 2018 3:40am
Quoting bloodpoodle
so many levels horizontal and vertical s/r.. Way too confusing. Then add in mulipal time frames.. My brain explodes... This system is missing so much.. Yet S/R is way over complicated. S/R is a tool But not an entire system.. Good luck! People looking for S/R indicator... Don't be so lazy.. Draw it yourself. You will learn so much more about it when you personally draw it and take ownership of that line on your screen! Trading is not about indicators telling you what to do.. Its about a deep understanding of the market your trading. IF you want...
The SR can be deactived by pressing the keyboard. H for H4, I for H1 and D for D1 and W for W1.
  • #29
  • Sep 16, 2018 3:52am Sep 16, 2018 3:52am
Quoting bloodpoodle
so many levels horizontal and vertical s/r.. Way too confusing. Then add in mulipal time frames.. My brain explodes... This system is missing so much.. Yet S/R is way over complicated. S/R is a tool But not an entire system.. Good luck! People looking for S/R indicator... Don't be so lazy.. Draw it yourself. You will learn so much more about it when you personally draw it and take ownership of that line on your screen! Trading is not about indicators telling you what to do.. Its about a deep understanding of the market your trading. IF you want...
great !!
i cannot agree more.

but for a beginner if you take whatever oscillator it could help to indentify support and resistance

for that:
1/ you want trade weekly chart you have to take monthly chart and draw key level- see chart
2/ then you switch on weekly chart
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  • #30
  • Sep 16, 2018 4:06am Sep 16, 2018 4:06am
after you do the same on weekly chart yellow rectangle
then you switch on daily chart

these area are where you have to trade
very powerfull key level


I have finished for today

bye
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  • #31
  • Sep 16, 2018 4:16am Sep 16, 2018 4:16am
at the end you switch on H1 chart using Ata strategy and you have all the key level Monthly, weekly and daily.
Price action becomes clear and décisions easier
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  • #32
  • Sep 16, 2018 4:22am Sep 16, 2018 4:22am
keep it up ..
MY OPINION NOT FINANCIAL ADVISE
  • #33
  • Sep 16, 2018 5:13am Sep 16, 2018 5:13am
Yes I agree as a newbie, your doing pretty good keep it up.

I'm going to just try and help you out a bit here, your levels are pretty good, but no different to most traders, you look too much at previous SR levels, they're gone they've been traded, not relevant anymore, the market is dynamic, on a one hour chart, SR levels of 3 or 4 days ago are not relevant anymore, you need to focus at what's going on at the coal face.

Look at the chart and think where traders will put they're stop loss, if you look at my chart, where the arrow is where stops will be, the market is bearish, trend traders will be entering short, seems a good entry point, break of two pinbars to the downside, high probability for entry, you'll have some traders trying to go long which is why the pinbars are there. So now the short moves in to profit, happy days, so where would you place your stop, yes at the line, it's break even, makes sense right?

So think what's going to happen next?

The market will retrace and guess what? Yes, the stops will be taken out, before it continues!!!!
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  • #34
  • Sep 16, 2018 6:11am Sep 16, 2018 6:11am
usd the opponent
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  • #35
  • Sep 16, 2018 6:15am Sep 16, 2018 6:15am
@BUSHY

my first purpose is to show how the price move and to help anyone who wants to be helped.
The high and the low the higher high ….
Now I do not need some indicator to see price movement but indicators can be usefull for start to understand and to see the H and the L on a chart.
I am sure not to be the better trader on FF.


Concerning your post MAYBE you forget something.
the exit is more important than the entry ! You cannot enter in a trade and let the trade go against you.
In your case I show you where I would be exit.
I will not give on this forum all my strategy or all my knowledge but I would like to guide some people on the right path
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  • #36
  • Edited 6:47am Sep 16, 2018 6:36am | Edited 6:47am
Quoting kette
usd the opponent {image}

yes Heiken Heishi could be a very good way to see the high and low on a chart.
On your graph usd chf we are in a range. Clear !

If we switch on H1 and if we draw the high and the low Following the indicator. What do you think ?? impossible to have a better idea about what is happening
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  • #37
  • Sep 16, 2018 8:27am Sep 16, 2018 8:27am
Quoting 4experience
@BUSHY Concerning your post MAYBE you forget something. the exit is more important than the entry ! You cannot enter in a trade and let the trade go against you. In your case I show you where I would be exit. I will not give on this forum all my strategy or all my knowledge but I would like to guide some people on the right path {image}
The trade I would have taken is not on the first image, it would have been on the second image, the first image shows how the majority of traders trade, which is the losing crowd, so you want to be trading 'against them' i.e. taking their stops.

As for exit, there is nothing on the first image to suggest an exit point, while on the second there is, i.e. just below the previous low, where stops have been taken out again.
  • #38
  • Sep 16, 2018 8:29am Sep 16, 2018 8:29am
This is the same technique I use to trade. Normally I draw lines where price got a nice and visible reverse.
  • #39
  • Sep 16, 2018 2:13pm Sep 16, 2018 2:13pm
Quoting bloodpoodle
so many levels horizontal and vertical s/r.. Way too confusing. Then add in mulipal time frames.. My brain explodes... This system is missing so much.. Yet S/R is way over complicated. S/R is a tool But not an entire system.. Good luck! People looking for S/R indicator... Don't be so lazy.. Draw it yourself. You will learn so much more about it when you personally draw it and take ownership of that line on your screen! Trading is not about indicators telling you what to do.. Its about a deep understanding of the market your trading. IF you want...
I agree with bloodpoodle on this. I find line charts are very useful for support and resistance purposes. In addition to the time based charts which I use, I have a 1,000 tick chart as well. For support and resistance I go from candle to line and plot the levels. In the end, the same thing comes out, the result is the same but I personally prefer the tick over the time. I find it clearer.
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  • #40
  • Sep 17, 2018 11:02am Sep 17, 2018 11:02am
Quoting 4experience
I propose you now a zoom with a view on H4 . White rectangle are S/R on H4 but they give us very few information in this case For reminder yellow rectangle are S/R on D. We can see: red Arrow: we could take a very good short trade (3 resistances) the bullish trade on the support would have been lost (we will see it on M15) the confirmation that the daily support broke yesterday {image}
It is good, and it can be even more good. Good luck!
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