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Drawing correct resistance and support-lines

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  • #521
  • Mar 10, 2008 3:25pm Mar 10, 2008 3:25pm
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting Umairs2004
I Like to keep the record's of the screenshots of all my trades winning/losing In My Trading folder. As i observed lot of intresting things in my free time through them..so I like to save them through Paint option as i have to indicate and write lot of things in my chart's screenshot's throuh paint options... As Mt4 is not providing some pointor's and options which i want and also like paint ...that's why when i save them through paint then I post the same here also...
But thank's for your favour...
thats cool, just sometimes you see traders that don't fully understand there platforms and spend a lot of time sorting charts for posting.
  • #522
  • Mar 10, 2008 3:27pm Mar 10, 2008 3:27pm
Quoting parlenk
Hi all,

Here a char of H1 and H4 eur..right now the price on the critical price i think.I brake and following a close below the support will trigger the down move, as on the 4H the price already break the support and now waiting to close below the support.2 cents
Keep em coming
Measure twice, cut once
  • #523
  • Mar 10, 2008 3:39pm Mar 10, 2008 3:39pm
Quoting Umairs2004
I Like to keep the record's of the screenshots of all my trades winning/losing In My Trading folder. As i observed lot of intresting things in my free time through them..so I like to save them through Paint option as i have to indicate and write lot of things in my chart's screenshot's throuh paint options... As Mt4 is not providing some pointor's and options which i want and also like paint ...that's why when i save them through paint then I post the same here also...
But thank's for your favour...
Great idea ! One excellent way to improve your trading. I have gained the most valuable knowledge when I did bad trades. In the start, the feeling when you lose money is awefull. This most be the only "positive" feeling in this market and one of the few feelings you can draw advance from, because when you first have had that feeling, you wanna find out how to avoid that feeling again. Hence, you make the best research.
Measure twice, cut once
  • #524
  • Mar 10, 2008 3:41pm Mar 10, 2008 3:41pm
Quoting stace
As Tom Demark indicator shows on 1H timeframe there were brake of down line. But what you will say about 4H chart? Take a look there is candle testing down trend line. What you boys will say about it?
Sorry i write like that questios. But i made very big mistake in my life. Whole year when I begun trading this market I was always lurking every forum finding some systems and testeng testing testing, but in the end I loosed loosed I never stick to simple trading approaches like this simple trend lines or Fibo levels I still can't understand how to draw them
So whole year i lost of my life and did not got a penny only was loosing testing then dropped one strategy run to another and so on, finally i found my road broken.
Now i dont know what I will do leave this market and live not well or fight and learn professional simple yet powerfull instruments
Hello stace, if u've read the previous post in the early pages, one of the post suggest not using the demark indicator to draw trendlines and i agree with that trader. because with the indicator u are dependant on it and it prevents u from aquiring the skills to spot the points for drawing trendline yourself.
So how do u draw a trendline? b4 knowing how to draw a trendline, u must first know what is a trendline. a trendline is just like a horizontal support and resistance line except that it's diagonal. and of course as the name says, it tells u the trend. in order to have a strong support or res line, it is determined by the rejection from that line when price reaches it or near to it. in short a strong SR line is when
1) price tested it many times but it holds
2) the rejection force from the line
3)the time taken for the rejection, in a sense tt the more pips movement in the lesser amount of time
4)reversal candlesticks appear when price near or touches tt line, eg doji, spinning top etc

it's easy, u just need some practice. 1 way to know whether u draw it correctly is by drawing a tl first(taking the above points into consideration) then u see how price reacts to it when it breaks it or if price finds SR at the line again.

Below is an example..

Hope this helps just my 2 cents

Yuna

Attached Image (click to enlarge)
Click to Enlarge Name: 1.9950.gif Size: 24 KB
  • #525
  • Mar 10, 2008 3:50pm Mar 10, 2008 3:50pm
On GJ today we had 2 breakouts on 2 different TF's. First on 1h chart, then some few hours later on 4h.

How to play this breakouts; on 1h chart price tested supportline, and turned it into resistance (although it only got tested once, still good enough to trade IMO). Then correlating with 4h chart we saw that GJ had starting to push through supportline, which had close value to 1h supportline, only a different angle.

When checking on usd/jpy daily chart, price had broken it too, which gave even more credibility to this break-out setup.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 1h.gif Size: 21 KB
Click to Enlarge Name: 4h.gif Size: 14 KB
Measure twice, cut once
  • #526
  • Mar 10, 2008 3:50pm Mar 10, 2008 3:50pm
and UJ;
Attached Image (click to enlarge)
Click to Enlarge Name: dailyuj.gif Size: 15 KB
Measure twice, cut once
  • #527
  • Mar 10, 2008 3:58pm Mar 10, 2008 3:58pm
Quoting aediaz1
Great idea ! One excellent way to improve your trading. I have gained the most valuable knowledge when I did bad trades. In the start, the feeling when you lose money is awefull. This most be the only "positive" feeling in this market and one of the few feelings you can draw advance from, because when you first have had that feeling, you wanna find out how to avoid that feeling again. Hence, you make the best research.
Couldnt agree more than tt. also, when u experience tt kind of pain b4, your subconscious will automatically do all it's best to prevent u from making the same mistake again, thus improving ur cautiousness/judgement/decision and eventually your trades unconsciously..

Yuna
  • #528
  • Mar 10, 2008 4:19pm Mar 10, 2008 4:19pm
Quoting aediaz1
On GJ today we had 2 breakouts on 2 different TF's. First on 1h chart, then some few hours later on 4h.

How to play this breakouts; on 1h chart price tested supportline, and turned it into resistance (although it only got tested once, still good enough to trade IMO). Then correlating with 4h chart we saw that GJ had starting to push through supportline, which had close value to 1h supportline, only a different angle.

When checking on usd/jpy daily chart, price had broken it too, which gave even more credibility to this break-out setup.

Oh boy I am already done with this pair. Pretty nice slide
Makes me wonder...will BOJ step in ?


Attached Image (click to enlarge)
Click to Enlarge Name: gj finale.JPG Size: 97 KB
  • #529
  • Mar 10, 2008 5:10pm Mar 10, 2008 5:10pm
Quoting yuna
Couldnt agree more than tt. also, when u experience tt kind of pain b4, your subconscious will automatically do all it's best to prevent u from making the same mistake again, thus improving ur cautiousness/judgement/decision and eventually your trades unconsciously..

Yuna
Lousy trade experiences are indeed important to draw lessons from. Looking pass to see what you have done right is also equally important. Personally I feel it important to review winnings more for the following reasons...

-It is depressing to keep going back to "feel" and analyze what has gone wrong as if going through bad experience once isn't bad enough. Most people would not have the mental aptitude to correct mistakes objectively. Why do you think problem gamblers keep repeating their vicious cycle of losing should they have known better ?

-Modern thinking in performance enhancement has advocated that mental replays or imagination of winning before stepping into action improves results tremendously in areas like sports. In trading it is difficult to imagine "what you have done wrong" and then correct it because you still have to go through pain which is not what we are designed for.
If runners visualize themselves crossing the finish line first before the gun goes off, if golfers imagine themselves picking up the trophy the night before the match...should't we do the same ?

-People tend to condemm themselves for their mistakes, condemnation doesn't help in trading or any other endeavours. Than what helps ?
seeing what you have done right gives you the courage to trade another day.


So spend your weekend analyzing mistakes, but spent more time looking at those profits and think how you can increase them. If you don't have any, then study other people's success. Be a happy trader

mARK
  • #530
  • Mar 10, 2008 5:12pm Mar 10, 2008 5:12pm
aediaz1, enjoying the ride on GJ ?

  • #531
  • Mar 10, 2008 5:40pm Mar 10, 2008 5:40pm
Quoting aiyahmarklah
aediaz1, enjoying the ride on GJ ?

If I had any position open I would. Had a tiny profit on 1h chart breakout, but cashed it in, as I had to leave computer That's the price I have to pay not being able to monitor market all day. But as I said earlier, profit is profit
Measure twice, cut once
  • #532
  • Mar 10, 2008 5:48pm Mar 10, 2008 5:48pm
Quoting aediaz1
If I had any position open I would. Had a tiny profit on 1h chart breakout, but cashed it in, as I had to leave computer That's the price I have to pay not being able to monitor market all day. But as I said earlier, profit is profit

LOL like Yuna would say , if u cant net the fish , prawns will do too....

Calling it a day, pretty boring Mon though

mARK
  • #533
  • Edited 6:58pm Mar 10, 2008 5:56pm | Edited 6:58pm
Quoting yuna
Hello stace, if u've read the previous post in the early pages, one of the post suggest not using the demark indicator to draw trendlines and i agree with that trader. because with the indicator u are dependant on it and it prevents u from aquiring the skills to spot the points for drawing trendline yourself.
So how do u draw a trendline? b4 knowing how to draw a trendline, u must first know what is a trendline. a trendline is just like a horizontal support and resistance line except that it's diagonal. and of course as the name says, it tells u the trend. in order to have a strong support or res line, it is determined by the rejection from that line when price reaches it or near to it. in short a strong SR line is when
1) price tested it many times but it holds
2) the rejection force from the line
3)the time taken for the rejection, in a sense tt the more pips movement in the lesser amount of time
4)reversal candlesticks appear when price near or touches tt line, eg doji, spinning top etc

it's easy, u just need some practice. 1 way to know whether u draw it correctly is by drawing a tl first(taking the above points into consideration) then u see how price reacts to it when it breaks it or if price finds SR at the line again.

Below is an example..

Hope this helps just my 2 cents

Yuna

Attachment

Very good explanation !


Not able to post @ upcoming London session due to other issues Good luck trading guys/girls
Measure twice, cut once
  • #534
  • Mar 11, 2008 2:10am Mar 11, 2008 2:10am
Hi, does your indicator selfupdate itself?
I have strange behaviour mine draws no correct lines i think.


Quoting dagoods
demark indicator look like this to me.... on 4 hour it works pretty good usually...but nothing in forex is guranteed of course


for your consideration.... would love critique of this trendline


thanks guys
Attached Image (click to enlarge)
Click to Enlarge Name: audusd.gif Size: 37 KB
  • #535
  • Mar 11, 2008 2:24am Mar 11, 2008 2:24am
2 more charts:
- e-u h4: a close (on h4!) below the trendline would mean at least 1.5070 area
- e-u h1: a close (on h1) above the trendline should bring it above last high, 1.5462. i favor this one, but let's see...
Attached Image(s) (click to enlarge)
Click to Enlarge Name: e-uh4.gif Size: 15 KB
Click to Enlarge Name: e-uh1.gif Size: 17 KB
Nihil Sine Deo.
  • #536
  • Mar 11, 2008 2:50am Mar 11, 2008 2:50am
Quoting stace
Hi, does your indicator selfupdate itself?
I have strange behaviour mine draws no correct lines i think.
That's Y I dont believe on demark Indicator and draw them by my hand's...
Even Draw them valid now...
  • #537
  • Mar 11, 2008 2:52am Mar 11, 2008 2:52am
Yes now I see. I will try somehow learn to draw them
Quoting Umairs2004
That's Y I dont believe on demark Indicator and draw them by my hand's...
Even Draw them valid now...
  • #538
  • Mar 11, 2008 2:56am Mar 11, 2008 2:56am
Quoting stace
Yes now I see. I will try somehow learn to draw them
Don't be sad, we all started somewhere but eventually got there.. keep practicing and smile
Trade what you see, not what you think.
  • #539
  • Mar 11, 2008 3:07am Mar 11, 2008 3:07am
Could someone post screen with trend line for today on GBPUSD and GBPCHF?
  • #540
  • Mar 11, 2008 3:11am Mar 11, 2008 3:11am
1 quick update before I'm leaving.

Always having faith in your lines pays of from time to time;
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: 1j.jpg Size: 128 KB
Measure twice, cut once
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