Attachments: Pharley Simple system - Get your levels right for trading S/R

Pharley Simple system - Get your levels right for trading S/R

Post #1
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First Post: May 30, 2016 12:29am May 30, 2016 12:29am

pharley
Joined Apr 2013 | Status: Member | 594 Posts

Hi again all,

ok, here we go again.

Based on major S/R, market structure and trend (higher highs, lower lows etc) to get direction of price. Draw in minor S/R and wait for price to break that point and retrace back to the level before entering.

Could wait until price actually closes below the line after going above it (for a short) as it's confirmation as per Russ Horn's Rejection Spike (thanks to that poster!)

Cheers
Pharley

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Post #2
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May 30, 2016 1:00am May 30, 2016 1:00am

FerruFx
Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,633 Posts

Glad you (re)started the thread!

Keep up the great work ...

MT4/MT5 EAs/Indicators/Alerts coder

Post #3
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May 30, 2016 1:03am May 30, 2016 1:03am

pharley
Joined Apr 2013 | Status: Member | 594 Posts

Quoting FerruFx

Disliked

Glad you (re)started the thread! Keep up the great work ...

Ignored

HI mate - yes I was just waiting for the mods to do 1 or 2 things, then I'd start again.

I learned a lesson from the last one - and also how to use the ignore as I'd not used it before.

Anyway, I'm hanging out for UK open!

Cheers
Pharley

Post #4
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May 30, 2016 1:26am May 30, 2016 1:26am

pharley
Joined Apr 2013 | Status: Member | 594 Posts

Hi again,

If you want to supercharge your account, enter multiple times. The last pic I posted above of the USDCAD shows 2 entries taken. THe target was taken by looking at the daily chart for a support level where I think price will get to. I target some pips in front of this. Once the second trade is in, teh SL for the first trade is moved to where the SL for the second trade is, thereby locking in pips. and profit.

When price moves in your favour again, move both SL's to a breakeven + a few pips in front of trade 2.

This is only 2 trades - look for larger runs (weekly and daily charts between major S/R levels) where you could get 3 or 4 trades in and move SL up or down when you can. It give a huge boost to your profits.

Cheers
Pharley

Post #5
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May 30, 2016 5:13am May 30, 2016 5:13am

saruhn
Joined Nov 2014 | Status: Team 600 | 271 Posts | Online Now

Hello Pharley and everyone on this thread.

I've been trend trading for a while now and during this time I've learned how to let my profits run, however my entries where just plain awful. Due to my poor entries i would be stuck in a position for days until it turned in my favor or even worse I would liquidate a position with a pretty big SL.

This system might just be what i need to improve my entry points. Here are 3 screen shots just to see if i'm understanding how one should enter a position using this simple and clear system.

Thanks,

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Post #6
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May 30, 2016 5:19am May 30, 2016 5:19am

pharley
Joined Apr 2013 | Status: Member | 594 Posts

Quoting saruhn

Disliked

Hello Pharley and everyone on this thread. I've been trend trading for a while now and during this time I've learned how to let my profits run, however my entries where just plain awful. Due to my poor entries i would be stuck in a position for days until it turned in my favor or even worse I would liquidate a position with a pretty big SL. This system might just be what i need to improve my entry points. Here are 3 screen shots just to see if i'm understanding how one should enter a position using this simple and clear system. Thanks, {image} {image}...

Ignored

Hi Saruhn,

Those are spot on!

There are a couple of ways to enter. 1) enter at the line or just before it as price comes back, or 2) Wait until price crosses the line but then retreats to finish the other side - eg in the third pic at point 1, price crosses it but then finishes above it. You could enter long at that point.

Either way, watch the risk side of things. BUt yes, well spotted - I hope it can give you a method to get in more accurate trade entries.

Cheers
Pharley

Post #7
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May 30, 2016 5:24am May 30, 2016 5:24am

saruhn
Joined Nov 2014 | Status: Team 600 | 271 Posts | Online Now

Quoting pharley

Disliked

{quote} 1) enter at the line or just before it as price comes back, or 2) Wait until price crosses the line but then retreats to finish the other side - eg in the third pic at point 1, price crosses it but then finishes above it. You could enter long at that point. Pharley

Ignored

Understood, i'll practice my eyes to spot these entries and see where I go from there.
Cheers mate,

Post #8
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May 30, 2016 5:57am May 30, 2016 5:57am

ralfy
| Joined Jan 2014 | Status: Member | 90 Posts

I believe this is the simplest way to trade, No Indicators nothing just some horizontal lines indicating Major SR on Higher TF ( Which one You prefer?) then go down to lower TF see what happen around those lines and wait for a rejection or reaction on the other direction, if it is on the way up wait for a rejection on the way down once the price comes back and breaks the way up You can enter the long trade and vice versa. Or did I get all wrong? If not are You going to wait to enter the trade once the candle closes or You enter the trade immediately as soon as the horizontal line is broken? By the way I see a small indicator and a MA as well on some of your charts. Do you really need them? Thanks for Your answer and of course as many Pips You can get. Ralfy

Post #9
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May 30, 2016 5:59am May 30, 2016 5:59am

Vlad13685
Joined Dec 2014 | Status: Professional Demo Trader | 536 Posts

Quoting ralfy

Disliked

I believe this is the simplest way to trade, No Indicators nothing just some horizontal lines indicating Major SR on Higher TF ( Which one You prefer?) then go down to lower TF see what happen around those lines and wait for a rejection or reaction on the other direction, if it is on the way up wait for a rejection on the way down once the price comes back and breaks the way up You can enter the long trade and vice versa. Or did I get all wrong? If not are You going to wait to enter the trade once the candle closes or You enter the trade immediately...

Ignored

Was going to ask the same thing about the MA.

Pharley, are you using the MA to give direction to the entries? Only long above, only short below?

If so, what values are you using for the MA?

Thanks

Vlad

Post #10
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May 30, 2016 6:19am May 30, 2016 6:19am

JackAntigua
| Joined Aug 2009 | Status: Member | 288 Posts

Hi Pharley,

Good to see you've re-opened and thank God you didn't let that complete stump from the other thread put you off!

I've just noticed this one which triggered overnight so I'm not on it, but I thought it was interesting as an example of where it would be prudent to use a conservative target, in this case around 1.5R, in anticipation of a support turned resistance zone holding.

Attached Image (click to enlarge)

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Name: USDCAD 30 May 2016 - 60 min levels.PNG
Size: 67 KB

Post #11
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May 30, 2016 6:20am May 30, 2016 6:20am

pharley
Joined Apr 2013 | Status: Member | 594 Posts

Quoting Vlad13685

Disliked

{quote} Was going to ask the same thing about the MA. Pharley, are you using the MA to give direction to the entries? Only long above, only short below? If so, what values are you using for the MA? Thanks Vlad

Ignored

Hi Vlad and ralfy,

I generally don't use the SMA50 too much, although it's there for reference - sometimes it reminds me to look at the wider picture.

Yes Ralfy, I start by looking at major S/R area on a weekly and daily chart and where price is in relation to those - e.g it may have bounced off a major support and is travelling up. Then I'm only looking to go long using these minor S/R areas to get in. I'd target the major resistance area further up, or look to the left of chart to see the next logical place where price may stall.

Hope that helps

Cheers
Pharley

Post #12
Quote
May 30, 2016 7:59am May 30, 2016 7:59am

pharley
Joined Apr 2013 | Status: Member | 594 Posts

Quoting JackAntigua

Disliked

Hi Pharley, Good to see you've re-opened and thank God you didn't let that complete stump from the other thread put you off! I've just noticed this one which triggered overnight so I'm not on it, but I thought it was interesting as an example of where it would be prudent to use a conservative target, in this case around 1.5R, in anticipation of a support turned resistance zone holding. {image}

Ignored

HI Jack - yeah,not going to be put off!

Anyway you could be right with that - even target the next minor S/R area. As long you keep risk at no less than 1:1.

Cheers
Pharley

Post #13
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May 30, 2016 8:06am May 30, 2016 8:06am

Sajid
Joined Jan 2015 | Status: ** NEWBIE ** | 598 Posts

Quoting pharley

Disliked

Hi again all, ok, here we go again. Based on major S/R, market structure and trend (higher highs, lower lows etc) to get direction of price. Draw in minor S/R and wait for price to break that point and retrace back to the level before entering. Could wait until price actually closes below the line after going above it (for a short) as it's confirmation as per Russ Horn's Rejection Spike (thanks to that poster!) Cheers Pharley {image} {image} {image} {image} {image} {image} {image} {image}

Ignored

Man , You are awesome. Personally I don't recommend involvement of MAs. I marked the support-resistance from daily. I trade between these two lines. I wait for the news. And after the news when the dust settled down, When my first trade triggered. Then i switch to lower TFs like M30. And trade aggressively between the two lines.

Forex; the game of movements not the game of candles.

Post #14
Quote
May 30, 2016 8:10am May 30, 2016 8:10am

pharley
Joined Apr 2013 | Status: Member | 594 Posts

Quoting Sajid

Disliked

{quote} Man , You are awesome. Personally I don't recommend involvement of MAs. I marked the support-resistance from daily. I trade between these two lines. I wait for the news. And after the news when the dust settled down, When my first trade triggered. Then i switch to lower TFs like M30. And trade aggressively between the two lines.

Ignored

Hi Sajid,

No not awesome, although I'll tell the wife! She'll only laugh!

Yep,I too am not very keen on MA's - I prefer to see higher highs, higher lows etc to see things trending.

Your approach sounds good Sajid - take the S/R levels from the daily and trade on the lower timeframes - I use hourly with this, but it can work on the lower ones like 15m and even 5m I think.

Cheers
Pharley

Post #15
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May 30, 2016 8:19am May 30, 2016 8:19am

ralfy
| Joined Jan 2014 | Status: Member | 90 Posts

Thanks after all it is so simple and yet We try always to make it complicated I believe the only way to succeed in this business is this very simple rule I consider number 1
Follow the rule and be Patient, Patient and again Patient As for Indicators I gave up long time ago and will never use them again. The only one I would use I do not know if You can call it an Indicator is the one that would show me a candle formation as a Pin Bar, Engulfing, IB etc. not just anyone but only those patterns forming at KEY Support and Resistance on Daily, Weekly and Monthly maybe could consider a 4H Time Frame. There are some out there and free as well but they show to many of these patterns most of them misleading. Is anyone out there who can suggest a good one that makes this Indicator? I say again only the one that appears at KEY SR of Major TF

Post #16
Quote
May 30, 2016 8:21am May 30, 2016 8:21am

Sajid
Joined Jan 2015 | Status: ** NEWBIE ** | 598 Posts

Quoting pharley

Disliked

{quote} Hi Sajid, No not awesome, although I'll tell the wife! She'll only laugh! Yep,I too am not very keen on MA's - I prefer to see higher highs, higher lows etc to see things trending. Your approach sounds good Sajid - take the S/R levels from the daily and trade on the lower timeframes - I use hourly with this, but it can work on the lower ones like 15m and even 5m I think. Cheers Pharley

Ignored

Whatever, But I will appreciate your efforts.

Take the examples of AUDUSD, AUDJPY consolidation on daily. Perhaps the Daily, H4, H1 trader may not be in position to get much benefit of it. But in the absence of any major news, Trading them on lower TF may have give you thousand of pips. Alas i have not traded them because i was not around.

Forex; the game of movements not the game of candles.

Post #17
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May 30, 2016 8:38am May 30, 2016 8:38am

pharley
Joined Apr 2013 | Status: Member | 594 Posts

Quoting Sajid

Disliked

{quote} Whatever, But I will appreciate your efforts. Take the examples of AUDUSD, AUDJPY consolidation on daily. Perhaps the Daily, H4, H1 trader may not be in position to get much benefit of it. But in the absence of any major news, Trading them on lower TF may have give you thousand of pips. Alas i have not traded them because i was not around.

Ignored

Thanks for the kind words Sajid. Happy to help out of I can.

Post #18
Quote
May 30, 2016 8:52am May 30, 2016 8:52am

Sajid
Joined Jan 2015 | Status: ** NEWBIE ** | 598 Posts

Quoting ralfy

Disliked

I believe this is the simplest way to trade, No Indicators nothing just some horizontal lines indicating Major SR on Higher TF ( Which one You prefer?) then go down to lower TF see what happen around those lines and wait for a rejection or reaction on the other direction, if it is on the way up wait for a rejection on the way down once the price comes back and breaks the way up You can enter the long trade and vice versa. Or did I get all wrong? If not are You going to wait to enter the trade once the candle closes or You enter the trade immediately...

Ignored

Perhaps the attached matterial(template+indicators) will serve your purpose. I have an EA which trades Pinbars/Engulfing on any TF you want when are formed at
(a) Supply Demand Zone
(b) Double Top and Bottoms
(c) Weekly/Monthly Lows and Highs
(d) Round Numbers
(e) Channel Boundaries
You can select and deselect any of the above to be traded or not. But anyhow, this is not the topic of this thread. Hopefully the attached template will serve your purpose.

Attached File