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  • #161
  • Jan 14, 2023 11:29am Jan 14, 2023 11:29am
Alright, time for psychological levels.

Rules:

1. Draw thin horizontal lines starting from Monthly chart all the way down to Daily Chart. Sometimes H4 depending on the price action.
2. Beginning with Monthly, identify key areas where candle BODY open/closes are respected. Pay attention to my screenshots below. Notice how clean the candles respect each level.
3. In addition to these levels, mark the LAST month's high and low
4. For EACH line you draw, round it up/down to the nearest .50, .00, or .25
5. As you come down from Monthly to Daily, fix any horizontal lines on lower timeframes to make them more accurately reflect the candle bodies.

Here notice my chart for USDJPY:

Monthly:
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Weekly:
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Daily:
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So now you will see some interesting things happen with these levels on lower timeframes. Use trend & market structure, and you can use fibonacci retracement to enter once a level is either broken or to be respected, and use regular old S&D and these levels as confluence.
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  • #162
  • Jan 14, 2023 11:39am Jan 14, 2023 11:39am
Notice how clean price respects these levels on the lower timeframes. The two psych levels on this chart are Monthly and Daily, and the timeframe of view is 4hr.

So what can you do with this information?

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  • #163
  • Jan 14, 2023 11:43am Jan 14, 2023 11:43am
There is one more trick or tool I should say that completes this trading style. I will release that at last once everyone has the hang of drawing these psych levels and confluencing it with S&D trading. You'll notice that these levels provide the springboard action for such S&D movement, and when price comes to retest the zones it's also re-testing the psych levels to pickup remaining orders. Play with it and keep practicing!
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  • #164
  • Jan 14, 2023 11:48am Jan 14, 2023 11:48am
Here's a trade setup using S&D and psych levels. We find our setups on H1, sometimes lower timeframes for more precise entries. Notice how the traditional S&D zone could have left us with a losing trade, but using psych levels, we *know* what price is trying to do. Look how clean it respects the Daily psych level and just melts down. Ideally you'll want your stops to be just on the other side of the psych level so price can dip in, grab the liquidity, and run.

Attached Image (click to enlarge)
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8.5:1 trade, very good
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  • #165
  • Jan 14, 2023 11:54am Jan 14, 2023 11:54am
Prefer to trade using Fibonacci retracement and market structure? No problem. Notice how accurate the weekly psych level is in confluence with the 61.8% Fibonacci level

I await members, subscribers, and all traders following to find an approach that fits their style utilizing the psych levels, S&D zones as previously shown.

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  • #166
  • Jan 14, 2023 12:00pm Jan 14, 2023 12:00pm
Quoting tiestobob
Here's a trade setup using S&D and psych levels. We find our setups on H1, sometimes lower timeframes for more precise entries. Notice how the traditional S&D zone could have left us with a losing trade, but using psych levels, we *know* what price is trying to do. Look how clean it respects the Daily psych level and just melts down. Ideally you'll want your stops to be just on the other side of the psych level so price can dip in, grab the liquidity, and run. {image} 8.5:1 trade, very good
Do you actually mark the rotations from monthly to daily?
  • #167
  • Jan 14, 2023 12:01pm Jan 14, 2023 12:01pm
Quoting majidmas
{quote} Do you actually mark the rotations from monthly to daily?
Every Sunday I add new lines if new levels have arisen, and delete/modify previous levels as candles have printed during the week.
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  • #168
  • Jan 14, 2023 12:15pm Jan 14, 2023 12:15pm
Another trade setup as example. What's the story here? Learn to make sense of what Price Action is doing. From this screenshot, you can clearly see that price approaches the Daily psych level, fails to break it once, breaks it the second time but doesn't sustain for long and closes under, then re-tests it and confirms it's not willing to go beyond it. This is the mark of a reversal, as famously shown by a Head and Shoulders pattern. You can use any form of technical analysis when price is around these psych levels, and one such approach is using them in conjunction with S&D zones, Fibonacci & market structure, candlestick & technical patterns (ie Head & Shoulders), etc. In this example, notice how price wicks off of the 50% Fibonacci level multiple times, before it just melts downward.

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  • #169
  • Jan 14, 2023 12:21pm Jan 14, 2023 12:21pm
Let's take a look at an S&D example together with the psych levels.

Notice how price kept coming down and breaks down through the Daily psych level but makes a quick bullish stride upward, indicating this level is the level the downtrend will stop at. Then price breaks upward through the Daily psych level with a thrust of a demand zone created, retests it multiple times with wicks and takes off in the new upward direction. This is the confluence I speak of when drawing your S&D zones and using psych levels as added confirmation of orders that were left behind being picked up. A cool 5.25:1 risk:reward trade will get you halfway to a funded account.

I'd like everyone to find their style using these teachings and post your charts, your entries, stops, success stories!

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  • #170
  • Jan 14, 2023 3:25pm Jan 14, 2023 3:25pm
Quoting tiestobob
Let's take a look at an S&D example together with the psych levels. Notice how price kept coming down and breaks down through the Daily psych level but makes a quick bullish stride upward, indicating this level is the level the downtrend will stop at. Then price breaks upward through the Daily psych level with a thrust of a demand zone created, retests it multiple times with wicks and takes off in the new upward direction. This is the confluence I speak of when drawing your S&D zones and using psych levels as added confirmation of orders that were...
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  • #171
  • Jan 14, 2023 3:47pm Jan 14, 2023 3:47pm
Quoting majidmas
{quote}{image}{image}
Avoid trading Gold. Gold is one of the few instruments that I avoid at all costs, just because it is so chaotic and does not follow as orderly as some of the other pairs. It will wick you out even if there are clean levels. Stick to the GBP, USD, and EUR pairs, as well as NAS100/US500.
Take this course: https://shorturl.at/upBey
  • #172
  • Jan 14, 2023 5:58pm Jan 14, 2023 5:58pm
Quoting tiestobob
Let's take a look at an S&D example together with the psych levels. Notice how price kept coming down and breaks down through the Daily psych level but makes a quick bullish stride upward, indicating this level is the level the downtrend will stop at. Then price breaks upward through the Daily psych level with a thrust of a demand zone created, retests it multiple times with wicks and takes off in the new upward direction. This is the confluence I speak of when drawing your S&D zones and using psych levels as added confirmation of orders that were...
quit posting about this imbalance crap lol
  • #173
  • Jan 14, 2023 9:40pm Jan 14, 2023 9:40pm
Quoting ninner
{quote} quit posting about this imbalance crap lol
he post whatever tf he wants in his thread. you can shut up and gtfo
  • #174
  • Jan 14, 2023 11:08pm Jan 14, 2023 11:08pm
@tiestobob
I tried to draw psychological levels on USDCAD monthly chart which looks very messy to me.
It seems I drew too many levels on the chart.
I'm curious about what psychological levels you would draw on USDCAD monthly chart.
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  • #175
  • Jan 14, 2023 11:58pm Jan 14, 2023 11:58pm
Quoting Xxyy
@tiestobob I tried to draw psychological levels on USDCAD monthly chart which looks very messy to me. It seems I drew too many levels on the chart. I'm curious about what psychological levels you would draw on USDCAD monthly chart. {image}
Haha, yes there is a few more than what I have. See below for mine. Also I drew many more than I needed to as I just wanted to show you how to draw them. Usually I only draw levels immediately above/below current price that way my charts aren't too cluttered. Also, some of these lines will coincide with lines on lower timeframes, or they will need to be modified/moved/deleted as you go down on Weekly and Daily timeframes.

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  • #176
  • Jan 15, 2023 12:38am Jan 15, 2023 12:38am
Quoting tiestobob
{quote} 1. The tf should be no higher than 1 hour!
why?
higher frames, safer trading . .
(more clear)
each day 10%,,,, https://www.forexfactory.com/thread/1371538
  • #177
  • Edited 1:16am Jan 15, 2023 12:43am | Edited 1:16am
Quoting Macd-rsi
{quote} why? higher frames, safer trading . . (more clear)
Sure. The markup is already done on higher TF. Entries are on H1 because we want to see price’s reaction at the higher TF levels for more accurate entries.
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  • #178
  • Jan 15, 2023 6:20am Jan 15, 2023 6:20am
They show what they want to show you as successful all the time so that you lose VG SAME 50%

good luck
  • #179
  • Jan 15, 2023 8:03am Jan 15, 2023 8:03am
Quoting tiestobob
Alright, time for psychological levels. Rules: 1. Draw thin horizontal lines starting from Monthly chart all the way down to Daily Chart. Sometimes H4 depending on the price action. 2. Beginning with Monthly, identify key areas where candle BODY open/closes are respected. Pay attention to my screenshots below. Notice how clean the candles respect each level. 3. In addition to these levels, mark the LAST month's high and low 4. For EACH line you draw, round it up/down to the nearest .50, .00, or .25 5. As you come down from Monthly to Daily, fix...
Hell o Tiestobob,

I am a bit confused on your levels drawan on monthly chart. Reason for 3 levels I am not able to get. I do not see any price reaction on these levels. Can you pls elaborate it.
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  • #180
  • Jan 15, 2023 8:51am Jan 15, 2023 8:51am
Quoting pundit78
{quote} Hell o Tiestobob, I am a bit confused on your levels drawan on monthly chart. Reason for 3 levels I am not able to get. I do not see any price reaction on these levels. Can you pls elaborate it. {image}
you missed pt 3?
ITB - Seeing Orderliness amongst 'Randomness'
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