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Question about S&R

  • #1
  • First Post: Edited 11:17am Mar 20, 2009 11:12am | Edited 11:17am
hello people,

i have one question.

how do you determine wether the S or R line is going to break? either Fibo lines or trendLine

i want to start making a trade as soon as the candle breaks the line. or should i wait for another candle to open after that?
  • #2
  • Mar 20, 2009 11:44am Mar 20, 2009 11:44am
the first principle of trading is that one moves from one area to another UNLESS you have the ability to understand where the price is going, so the SAFE thing is to take your profit at every resistance area, and as you say, re-enter as it starts to move again.

this is done in several ways --- first is the use of a "buy stop" placed ABOVE the resistance point, but it also comes with a LARGE problem, which is a form of "stop hunting". Essentially, what the tier one traders, and any brokers do, is to allow the momentum to "carry" the price ABOVE the resistance point by a small number of pips, and then the price SETTLES at its real resistance point, effectively taking out any buy stops that were placed just above the resistance point.

If the price continues, this is no problem, but if this is the REVERSAL point, what happens next will probably hit your sl price and you will be stopped out, EVEN if the move now continues back up, breaks the resistance point, and keeps going.

the PROPER use of indicators and chart overlays such as the LRC will show you if any strength remains in the move and if, AFTER THE NORMAL RETRACE, the price will continue UP --- the use of moving averages as s+r points is of major importance BUT try using the small chart overlay ive attached, which will show you support and resistance on your chart, and see if you like it ---- everyone who tries it continues to use it constantly, so it may be pretty good.

It is a process that is all part of the LEARNING process, and sadly to say, without a good mentor pointing out how things work, you must go thru this training yourself, grabbing information as you progress !

Forex is rather SIMPLE, but it is not EASY --- it simply takes time and study and experience to be able to proudly wear the TRADER label, but it is not beyond ANYONE who wishes to truly and honestly wear that label !

I may be moving here to teach, bringing with me a number of newbs who are learning quickly how to trade, but i have to move around a while to see if i like it here or not.

enjoy and trade well

mp


Quoting gnomefan
hello people,

i have one question.

how do you determine wether the S or R line is going to break? either Fibo lines or trendLine

i want to start making a trade as soon as the candle breaks the line. or should i wait for another candle to open after that?
  • #3
  • Mar 20, 2009 11:59am Mar 20, 2009 11:59am
Quoting mparker
the first principle of trading is that one moves from one area to another UNLESS you have the ability to understand where the price is going, so the SAFE thing is to take your profit at every resistance area, and as you say, re-enter as it starts to move again.

this is done in several ways --- first is the use of a "buy stop" placed ABOVE the resistance point, but it also comes with a LARGE problem, which is a form of "stop hunting"....
what did u attached? i dont see nothing

sorry if i misunderstood you but my english is not quite good.
  • #4
  • Mar 20, 2009 12:11pm Mar 20, 2009 12:11pm
WHOOOOOPS !

see the edited version please --- your english is fine, my head and memory is the problem !

LOL

mp


Quoting gnomefan
what did u attached? i dont see nothing

sorry if i misunderstood you but my english is not quite good.
Attached File(s)
File Type: zip Support and Resistance (Barry).zip   < 1 KB | 312 downloads
  • #5
  • Mar 20, 2009 12:17pm Mar 20, 2009 12:17pm
thanks for the indicator..

any guide on how to use it?

but i know how to draw those line. the thing i wanted to know is how to determine if the line is broken. if one candle touches it and move through it or do i need to wait the candle to close for confirmation?
  • #6
  • Mar 20, 2009 12:24pm Mar 20, 2009 12:24pm
Quoting mparker
the PROPER use of indicators and chart overlays such as the LRC will show you if any strength remains in the move and if, AFTER THE NORMAL RETRACE, the price will continue UP --- the use of moving averages as s+r points is of major importance BUT try using the small chart overlay ive attached, which will show you support and resistance on your chart, and see if you like it ---- everyone who tries it continues to use it constantly, so it may be pretty good.

mp
Hi MP,

Did you forget to attach the overlay you referred to above or is it posted somewhere else?

Thanks,
  • #7
  • Mar 20, 2009 12:26pm Mar 20, 2009 12:26pm
Quoting mparker
WHOOOOOPS !

see the edited version please --- your english is fine, my head and memory is the problem !

LOL

mp
Looks like I need to type faster.....Pls disregard my prior post.
  • #8
  • Mar 20, 2009 12:40pm Mar 20, 2009 12:40pm
let us simply state that if the momentum is HIGH and it is before noon, edt, you can assume the price will continue, although as i stated, using your indicators to see remaining strength will tell you immediately.

I have spent pages teaching others how to do this, and i lack the time to go into detail at this moment, but if i stay here, my thread will tell you how to do it.

BUT always watch where the bollinger bands live and whether they are moving up or down, as thats a pretty danged good clue --- a macd will tell you pretty reliably on a timeframe of 15 minutes or more, and if you use the H1 chart as your TREND chart, its indicators will ALWAYS tell you the correct TREND, even if the price is moving opposite for the moment.

but to tell if resistance will be broken, look to your indicators or to a grouping of more than 2 resistance indicators (overlays) on your chart, above the LRC and sitting there smiling at you, cause that will probably be where the price shall go, especially on the 15 minute.

watch your momentum, watch for the telltale signals of a group of overlays ABOVE the top LRC and watch the bols direction and where it has settled, because that will be your final price for that timeframe.

words are useless often when discussing something that moves --- video would be better, i guess

enjoy and trade well

mp

Quoting gnomefan
thanks for the indicator..

any guide on how to use it?

but i know how to draw those line. the thing i wanted to know is how to determine if the line is broken. if one candle touches it and move through it or do i need to wait the candle to close for confirmation?
  • #9
  • Mar 20, 2009 12:45pm Mar 20, 2009 12:45pm
Quoting mparker
let us simply state that if the momentum is HIGH and it is before noon, edt, you can assume the price will continue, although as i stated, using your indicators to see remaining strength will tell you immediately.

I have spent pages teaching others how to do this, and i lack the time to go into detail at this moment, but if i stay here, my thread will tell you how to do it.

BUT always watch where the bollinger bands live and whether they are moving up or down, as thats a pretty danged good clue --- a macd will tell you pretty reliably on a timeframe...

thanks for your great reply..

yes, i do think that video will explain it much better
  • #10
  • Mar 24, 2009 7:37pm Mar 24, 2009 7:37pm
I answered the same question on this thread
  • #11
  • Last Post: Mar 24, 2009 10:53pm Mar 24, 2009 10:53pm
you really consider that an answer ?

well, if it works for you !

mp



Quoting ASnale
I answered the same question on this thread
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