A Simple Amalgamation

Support and Resistance.
There are many ways to determine S/R. From simple to more complex. Static, as in fixed lines of various types to fluid through the use of ma's. What they all have in common is price. What I will briefly discuss here is my interpretation of S/R. S/R for the most part needs to be used as an area or zone as opposed to one specific value. When used in conjunction with the few indis I use it makes for much better entries (something I do not always execute properly because I tend to get impatient).

I will go over the M5 from yesterday in the next post. Then I will take this concept and do the H1 from the last few days. Then I will discuss further concepts of this method from higher time frames to the lower.

OK, I know this is hindsight. And blah, blah , blah. These are the things you need to see when live. I did a poor entry because I got impatient and hurried rather than wait for things to set up properly. It will likely happen again. No excuses, just the way it is.

Regardless. This is the M5 from 9 Nov 2017 US am.



This was a ~60 pip move down during London and ~100 from the top. There was a consolidation period going into London. Box A shows a brief consolidation near the bottom an hour or so before US. If you look closer this was actually a wedge. Price then made another push down and stalled. At (1) you have a double bottom. This is followed by a decent push up that tops at the top area of the consolidation from Box A.

A trading range of about three hours and ~20 pips is established. It establishes tops at (2) and bottoms at (3). There was one attempt to breakout at Circle A. Notice that it stalled at the H1 Hull equivalent. My entry was the grey arrow.

Box B is the area where price gets inside the H1 Hull. Here is where patience better than mine comes in handy. Where the hammer (which was not a hammer the entire time) tested the bottom and the stoch was near OS waould have been the best entry. It would also have been risky. You never know if S/R will hold until after the fact. Any entry at S/R needs to be taken with the knowledge that some will fail. Once the hammer formed the confirmation was stronger and an entry on the open of the next bar would have been very good.

I point out (4) not because of any significance, as there is none, but for the fact that there was a slight pause at that point. I think any area that may be S/R is often tested in this manner.

Circle B shows where price stalled at the 120 smooth. I do not think any MMs use a 120 smooth for trend (some might I have no idea). To me this is just a phenomenon of price where most anything can be used. What makes "most anything" useful is if you stick with it and do not jump around trying to curve fit everything. I use the same parameter indicators on all time frames. And they work for my purposes.

Circle C shows the M5 Hull turning over with price inside it and the stoch coming off OB. An entry anywhere in that circle would have been acceptable.

(6) shows the power of prior S/R areas. The tail of that bar was formed by 2 one minute bars. I think it was some UK news that the MMs had before any of you saw it on FF or anywhere else.

Oh well. Good entry looking for another push down. Did not pan out.

Today sucked. Nature of the beast sometimes.

And 3rd times a charm. Better quit while I'm at BE.

Hi
Looks good. Do you find the indicators help you?
I've always been distrustful of any, but maybe that's just me being stubborn.
I once toyed with using indicators in the opposite way to which they were designed with some success, but I suppose you could call that divergence!
Good luck

I have always used indicators. They help, BUT you need to know how to read them as at times they will lead you astray. I think of most indicators as fluid S/R. Once price gets inside for up or down they tend to hold.

What I should do is just go all in on S/R price action. Every time I try that I seem to get stage fright.

By putting this thread here it helps me to keep honest and focus better as it is all out in the open.

Doing a little longer term experiment. AUD/NZD, it was the 1st pair I pulled up that roughly fit the parameters so I gave it a go. There is no doubt I could have done better analysis and chosen a pair that was better situated.

So if this initial "experiment" fails it is on me for not taking the time to thoroughly analyze the pairs as I should have.

I'm going to turn this into a step/phase project. I closed that trade as I did not do all as I should have with the analysis. Even so it was positive and encouraging.

It happens enough to consider it. Many times the US session will reverse the London session. Not always, but enough to go the other way if the setup is there.

Out at BE.

And I may have moved it there a bit soon.

Matters not. Better safe than lose money.

That last trade took forever. I lost 15 pips due to greed. It went right to my original TP. Like a fool I pulled it.

Here was that 2nd trade. Need to do what I know instead of being greedy (has always been an issue and I know better).

I have mentioned many times my desire to better learn PA. I decided to just go for it via the PASR route of strat found here and here. This will not be an overnight learning process as I already took a loss on USD/JPY by not paying attention. I have two other trades on that I did better analysis on (it really does not take that long to do). These should make up for the head-in-the-rear loss I took.

Analysis for the top six ATR pairs on Strats method.

https://www.forexfactory.com/showthr...5#post10508695

Closed the USD/JPY for a loss. Poor analysis. I basically jumped in it without proper prep. Sold right into a daily support. Got what I deserved from this one.

Took a serious thumping attempting to trade just PA. I will go back and give it some more study and hit it again next week. Being the first attempt at actually trading it I am glad it beat me down. Makes me more determined to master it.

Hello my friend, nice to see you posting again.

Subscribed.

Glad you stopped by. This started with an MA system. I have decided to give some time to see if I can figure out price action trading. I want to attempt longer term trades (Yeah I know I was totally against them forever. But I am almost too busy to sit down every day on the shorter TFs.).

Reading strat's thread. Bought Al Brooks first book recently. Bought his 2017 video course earlier this year. Friday I bought what some call the bible of PA trading Edwards and Magee's Technical Analysis of Stock Trends.

I should be ready to go all out on this come January.

Ciao

Been out working a real job. A couple more years to retirement. Still trade some. Took a bit to convert from short time to longer time. Will start posting again when I can. Driving a flatbed OTR (my one "skill" I guess).

Glad to see you around again!

Trading longer time sounds pretty awesome to me. Looking forward to see your posts.

It was a matter of necessity. Longer TF or no trading. I read your profile you got married.