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The Support Resistance Switch Method - Trade with one line

  • #21
  • May 17, 2018 11:27pm May 17, 2018 11:27pm
Quoting CrocodileRex
{quote} I have a level there at 0.7658 sell. Since my stop and TP is very tight, i prefer to take the higher level to be safe.

On a daily frame my SL is about 200 pips to let the trade breath and develop ... cant be that tight if u trade daily ... it should be at least your ATR plus some
  • #22
  • May 17, 2018 11:28pm May 17, 2018 11:28pm
Quoting bojack34
{quote} You state you only use M30 and H1 on page one but the chart you just posted is M15?
Sorry for that, i zoom in for you guys to see clearly since someone mentioned my chart is too dark and less details. Yes i only use M30 and H1 to find the line.

The most important thing is the V shape. The yen chart i posted has a V shape there.
  • #23
  • May 17, 2018 11:30pm May 17, 2018 11:30pm
Quoting JacolineFIS
{quote} On a daily frame my SL is about 200 pips to let the trade breath and develop ... cant be that tight if u trade daily ... it should be at least your ATR plus some
yes you are correct. I am an intraday trader so levels more than few days old, i usually wont take it. Most of my entries are fast in fast out.

Just different MM style i guess but i think our approach is the same. We are trading the bounce of the s/r zone. It's just i prefer a fast scalp.
  • #24
  • May 17, 2018 11:33pm May 17, 2018 11:33pm
Quoting CrocodileRex
Currently watching this level yen, the breakout is not that strong but it is with strong trend overall, i will take it with half position 110.86. let's see how it goes. {image}

I see it on the 15-min chart, but this only give about 12 pips (86 to 98), but that is all you are looking for anyway good luck
  • #25
  • May 17, 2018 11:36pm May 17, 2018 11:36pm
Quoting CrocodileRex
{quote} yes you are correct. I am an intraday trader so levels more than few days old, i usually wont take it. Most of my entries are fast in fast out. Just different MM style i guess but i think our approach is the same. We are trading the bounce of the s/r zone. It's just i prefer a fast scalp.

Well, i scalp sometime too. But only if I am there to watch the market like a hawk and get out quick. Otherwise, if i want to do set-and-forget trading i go for the higher TF giving me less stress and much more room for the price to play out, but naturally those have to be at a much smaller lot size to keep the SL around 1-2% per position

In addition to the way you trade, I also trade the first time touch of the S/R or demand/supply zones without having to wait for a support turned resistance or resistance turned support levels .. ALL SUPPORT RESISTANCE or supply demand levels
  • #26
  • May 17, 2018 11:38pm May 17, 2018 11:38pm
break - close over - retest - enter
  • #27
  • May 17, 2018 11:45pm May 17, 2018 11:45pm
Quoting bojack34
break - close over - retest - enter

Yes pretty much.. but i like to wait for at least a few candles after the close over, and have enough movement up in pips before the retest, otherwise i consider it to be a "head fake" or stop hunting, or fake break-out, whatever you want to call it. I want to make sure the move away from the line is significant to warrant an entry and it gives good R/R especially if your TP is where the previous highest/lowest level was after the breakout. That is just me though, you trade whatever makes you money and whatever you see best suits your trading style
  • #28
  • May 17, 2018 11:48pm May 17, 2018 11:48pm
Quoting bojack34
break - close over - retest - enter
exactly the method. The problem is when do we enter? Do we wait for an engulfing bar? pin bar? as for me, that would be too late. I prefer to set a limit there and be a sitting duck. Also, most of my entries have positive slippage since i am going against the trend with limit orders.

But keep in mind that, red news hours and volatile moments like big speakers would totally violate the level. That is why i NEVER set a limit on all levels everyday. I only put on the limit when i am infront of the computer and price is approaching the level within 10 pips.

Like the eurcad trade, it would be too late to enter at the close of the pin bar like here. The purple line would be my entry. And it would be just good enough to take 10-15 pips from it. Not more not less.

If the price had no reaction and stopped out, so be it. It's just another trade.
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  • #29
  • May 17, 2018 11:51pm May 17, 2018 11:51pm
Quoting JacolineFIS
{quote} Yes pretty much.. but i like to wait for at least a few candles after the close over, and have enough movement up in pips before the retest, otherwise i consider it to be a "head fake" or stop hunting, or fake break-out, whatever you want to call it. I want to make sure the move away from the line is significant to warrant an entry and it gives good R/R especially if your TP is where the previous highest/lowest level was after the breakout. That is just me though, you trade whatever makes you money and whatever you see best suits your trading...
yes the yen chart i posted is similar to that the price didnt breakout strong enough to warrant another up move. It would be foolish to hope for a 20-40 pips north move up (but who knows) but then my TP is only about 10 pips. So it's a risk i am willing to take.
  • #30
  • May 18, 2018 2:46am May 18, 2018 2:46am
Hi CrocodileRex, I don't understand very well on which candle you place the limit order? Could you post a graph with all criterias: horizontal line s/r, candle breakout line, line at the top of the wick, limit order? Thank you for your patience
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  • #31
  • May 18, 2018 3:22am May 18, 2018 3:22am
Quoting 8tango
Hi CrocodileRex, I don't understand very well on which candle you place the limit order? Could you post a graph with all criterias: horizontal line s/r, candle breakout line, line at the top of the wick, limit order? Thank you for your patience

Limit order at the line itself i believe is that how he does it, once you have found the line.
  • #32
  • May 18, 2018 3:23am May 18, 2018 3:23am
Quoting 8tango
Hi CrocodileRex, I don't understand very well on which candle you place the limit order? Could you post a graph with all criterias: horizontal line s/r, candle breakout line, line at the top of the wick, limit order? Thank you for your patience
Sure! Here is the same chart for the cadjpy trade two days back.

1 is where the price breaks out
2 is where i started to draw the purple line. Then i wait for price to pullback/retrace and put on my limit order
3 is where the limit order is triggered. It was hit exactly and reverse back to my tp at 11 pips for that pair.

Of course, this is all in hindsight and i dont like hindsight trading where traders only post the trades after it happened. The good thing about this method is we draw the line, wait for price to come, take the trade and let it be. There is no second guessing. Well, there are times when price didnt get trigger and it ran away from the level, at that case, i would be cautious and take half or totally discard the level.
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  • #33
  • May 18, 2018 3:28am May 18, 2018 3:28am
Quoting CrocodileRex
Currently watching this level yen, the breakout is not that strong but it is with strong trend overall, i will take it with half position 110.86. let's see how it goes. {image}
just got a TP for the yen i posted earlier for 10 pips. Although it was half position, but still a profit.

Move on now. Just another trade.
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  • #34
  • May 18, 2018 4:03am May 18, 2018 4:03am
Thanks for info. It is one more simple and clear method for using.
  • #35
  • May 21, 2018 12:18am May 21, 2018 12:18am
Good Morning Traders,

Here are the few levels i am currently watching that are closest to be triggered.

The second chart UsdCad is a bit tricky as i am unsure of the two levels nearby. I am gonna take half position at the first level and half at the second if the first failed. This way i can reduce my risk and not miss the level.
Attached Image(s) (click to enlarge)
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  • #36
  • Edited 3:47am May 21, 2018 3:36am | Edited 3:47am
will sell euro at 1.1750

Edit: will abandon the level since it's been used by the lower level.
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  • #37
  • May 21, 2018 4:28am May 21, 2018 4:28am
what is the brand of your crystal ball bro?
  • #38
  • May 21, 2018 4:45am May 21, 2018 4:45am
Quoting sideway
what is the brand of your crystal ball bro?
crocs
  • #39
  • May 21, 2018 8:33am May 21, 2018 8:33am
Quoting sideway
what is the brand of your crystal ball bro?

There is no crystal ball ... you just have to open your eyes and look for the price reaction areas (lines). It is simple resistance turned support, or support turned resistance trading. Google that and you will have your own crystal ball too

AS for the EU at 1.1749, I would stay away from shorting that as the 1.1725 is a HUGE support area and will bounce much higher than 1.1750 in my opinion. I will let it go to 1.18xxx at least before shorting again especially with euro banks closed today ... just my two cents
  • #40
  • May 21, 2018 8:40am May 21, 2018 8:40am
Quoting CrocodileRex
Good Morning Traders, Here are the few levels i am currently watching that are closest to be triggered. The second chart UsdCad is a bit tricky as i am unsure of the two levels nearby. I am gonna take half position at the first level and half at the second if the first failed. This way i can reduce my risk and not miss the level. {image} {image} {image} {image}

I have the same lines and same plan of entry on USDCAD , two positions each at the lines you have drawn. Lets see where she goes. I have to say that my TP is at 1.2990 just short of the previous high and that is why my entry does not need to be so precise as yours though - I realize you looking for 10-15 pips on this trade, I am looking more like 100 to 150 pips

There is also fundamental reason to support a long trade in USDCAD as Canadian numbers didn't impress last Friday and we all know that the USD is on a tear lately. I believe this one is gonna be a nice long trade for a few green pips (if triggered at these levels)

Good luck to both of us on this one.
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