Support & resistance - Let's get creative

Support & resistance is one of the most popular concepts in trading. Some swear by it, some stay away from it.
It's a topic that I have begun to take a serious quantitative look at.
I am interested to see if there are any experts in this forum that have done an extensive study on this, and are willing to share their knowledge on how best to make use of support & resistance levels in your trading.

Let's discuss.

Interesting topic to delve into. I will definitely be keeping an eye on this thread. The premise is good though as orders will be resting at these levels, many put stop losses there and also they lie on key levels from an institutional stand point

Exactly why these "key levels" come with mixed reviews. I'm keen to explore primarily 3 areas:

1) Using S/R as high-probability zones where price bounces off
2) Using S/R as high-probability zones where price breaks out from
3) Using S/R as high-probability zones where price breaks out, retests and continues in the same direction

This is probably one of the greatest ways to make it in forex, support and resistance trading. Ill enclose a chart and will all trading on all time frames you just need to mark a high or low and look left to see how and when to trade it. I use a 20ema as a trend ref to filter the good and ad trades
And that is all that is required.

first one was a previous high, I found this be reducing the size of the screen and looked left.
your next rows of lines is evidence that you clearly dont understand a damned thing.
The high was a previous high also- I find highs or lows that are many years old and use them.
Yes price is under the ema, SO F"N what. I dont need the ema to tell me the next move.

Now Mr Scrambled Eggs we are talking about support and resistance, I have shown you my view and how I trade, this is something that you cannot do due to a stupidity problem you have. Your not looking at the points of interest as they are clearly marked and worked. READ AGAIN Not all possible trades are marked.
Think about price showing a rejection, like I have. Then think about finding the areas on higher or lower timeframes. Then think about selling ice cream on the corner because you will never make it in forex.

Ok, mr "I can find a lot of good setups on charts and explain everything in the past", I see. Do you have more chart great entries to show?

yes mate I have many charts but for fools like you they will not be shown. Go and sell your ice creams.

Please share more great entries! I want to be as good as you to be able to find a lot of good entries in the past. Is it possible? May be you have some special abilities that are beyond of ordinary people?

get your blue pen out mate and shove it up your A###

Support and resistance are very good. But you need real data to get them. All that random lines based on nothing make no sense. But once you have real limit orders blocks, orderflow, footprint, volume and delta - yes, very nice and help much in trading.

I prefer trading this way: place virtual trigger line at the high (+ some little distance) of reverse candle and wait for MA to cross it. If crossed then open the trade. Exit on nearest level, reverse candle, stochastic or TS. What comes first. Why I do it that way? Because reverse candle is some kind of resistance. And if it will be broken then let's collect some $.

you know, then you dont know, then you still dont know and know you know again- trade the plan.

S&R are only a part from that i call the "base". If you understand that you will for sure have a clue what S&R will be important and what are only nice lines, more not.

SR are very important for what?
In this example you must trade pullbacks. But I can share another example where you should trade breakthrough only.
If create simple test there will be that 47% winrate max on long run. But who cares. Everyone just pick the example that fit the idea. All that SR lines in our imagination only. Limit orders are fake. They can be removed, added and manipulated every second and the picture will be different. Market orders is the power. And stop losses.

You are here. Where are your SR levels?

p.s. I see, paper trading...

Hi ryu,

I think I have tried to have written conversations with you on threads before. I hope things are okay for you.

Please don’t take this the wrong way, but might I suggest that you are seeing some “big” things, in “small” ways.


Now I do agree with you to a point regarding S/R, as it is arbitrary. And of course we are told some amazing things like Support can also become Resistance later. But, looking at “any” chart, I fail to see how you cannot pick up on the obvious.


I think this might be due to the fact that you indicated somewhere you are solely an EA trader (I might be wrong). As an exclusively EA trader you therefore might only look at charts in the manner of “how can I code this”.

If so, this might be your limitation problem in seeing charts for what they just show. If not, then it might be a little hard to help you if you don’t ‘see” what others might see on a chart.


For example you have posted 2 charts recently that were taken from someone else’s charts (I think you did this for me also once).

When I look at the two charts above I see “something” (ie I see potential trades all over the place - MY trading problem is the patience part - the waiting - where I have found it is best to just wait for the “best” setups to present).


If you do not see the same “something”, maybe you are, in your own way, asking for help here as to why you cannot see it.

Or maybe you are just questioning the validity of the whole chart concept as posted by another trader I don't know.


Two points that might help when considering, or are looking at a chart (for a trade setup).

Is price in a “current” short-term directional momentum.

Is price in a current short term range situation.


Those two questions (to yourself) might help when you are thinking will I utilise areas of price returns (S/R, ranges etc). Or, will I run with the price momentum TO a place where price has been before and “something” did happen there (either a breakthrough or a retracement which you mention is about a 47% chance of one occurring).


In relation to the EURUSD pair in your prior chart (I do not trade the bitcoin one, I only trade currencies, and then only 4 of the majors) do you realise that the highest price & lowest price EVER on that pair (that we can get from mt4) was about 13 YEARS ago.

By that I mean the pair has therefore been ranging (from the extremes) for well over a decade. We can reduce all that to how price is ranging "today”, because at some level it IS ranging (by definition).

The places that price ranges (and has been) is, I believe, what traders call S/R points, and if price is seen to be ranging, and you can call them SR or whatever, they can be tradeable I believe.



(edit: some traders specialise in either breakthrough trading or reversal trading. Others specialise in range trading. Each of those has a view of the market. If you wish to capture EVERY possible trade move then you best not think in those specialised ways. Try & see the market in its whole potential.

This of course is the most difficult and maybe not even the most financially rewarding - yet we all have to make our own stand on what we want from the markets and how we trade them.


Criticising or negatively questioning other traders for their own personal S/R thoughts and offerings to us readers on the Forum does not present you in the best light. And you are probably - like most of us - a reasonable person in the end).

all the best
Pete

Very well said mate, and I also think he is very confused.

OK, supports and resistance are found all over the charts where price has seen before and also where rice has not seen before. There to say if price makes a new high then that become a new resistance- take into consideration if price moved away from that point there must of been a reason.
The chart below shows a point where the old resistance had become a new support. These type of trades can be found countless time all over the charts that give beautiful entry and exit points.

Hi Pete! Thank you for detailed reply. I agree with you mostly, but I criticize only fake gurus, because they are paper traders and talk nonsense.

1. He has shown the chart of 1m TF, there were no 13 years old SR levels.
2. Two of three arrows (>60%) are drawn in the past when there were NO information (no data) available yet.

So what we have here? One guy start to call names after I asked him how he is so lucky to pick up exact tops and bottoms. Second one has shown paper trading with impossible drawings. But occasionally only ryuryu is mr. bad guy here.

May be I'm wrong. That's why I'm asking questions. How the world they made decision in the past using the data from the future that was not available at the moment of entry? And what the world for they are posting all that stuff? Who they are trying to impress? So it is ok for you?

I can discuss real trades, try to find solution, exchange ideas. But I see only all that "magic" entries again and again... So if they try to trick me/us then why not to ask additional questions and even critiscise a little?