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Drawing correct resistance and support-lines

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  • #741
  • Mar 19, 2008 12:45pm Mar 19, 2008 12:45pm
Quoting yuna
Hello everyone! wow, seems like i missed a couple of good setups. was caught up with work lately.. hmm, anyone missed my presence? LOL

Geppy, pinocchio at monthy S2/weekly pp area followed by a breakdown@ 800GMT.

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yuna
Hahaha I was woundring about you...well where You lost... Look's you was in a holiday Mood......Wellcome Back!!!:
  • #742
  • Edited 12:52pm Mar 19, 2008 12:49pm | Edited 12:52pm
hey Umairs, long time no see! (well actually just a few days, but feel like a long time) LoL. Since u are here, i've something to ask u.. how would u draw ur support line in the attached chart? a or b? and why?(ignoring what has happened at 17th march)

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Yuna,
an advance Thanks
  • #743
  • Mar 19, 2008 12:55pm Mar 19, 2008 12:55pm
waiting to observe the breakout of EJ(if it happens..)

Attached Image (click to enlarge)
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Anyway can anyone explain why there's strong correlation between EJ and GJ?

Yuna
  • #744
  • Mar 19, 2008 1:12pm Mar 19, 2008 1:12pm
Quoting yuna
hey Umairs, long time no see! (well actually just a few days, but feel like a long time) LoL. Since u are here, i've something to ask u.. how would u draw ur support line in the attached chart? a or b? and why?(ignoring what has happened at 17th march)

Attachment

Attachment

Yuna,
an advance Thanks
Ofcourse ''B'' As market touched it and retraces back...
Also See Ur screenshot... try to draw it from the point i have indicated in ur screenshot...Also see my screenshot...Compare ur with mine...
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  • #745
  • Mar 19, 2008 1:26pm Mar 19, 2008 1:26pm
Quoting Umairs2004
Ofcourse ''B'' As market touched it and retraces back...
Also See Ur screenshot... try to draw it from the point i have indicated in ur screenshot...Also see my screenshot...Compare ur with mine...
Thankew Umairs, yea if u see post #740 my support line was the same as yours tt's why i say ignoring what has happened on 17th march
i'm just wondering between a and b which will u choose,one including the swing, the other taking the swing as noise.

Yuna
  • #746
  • Mar 19, 2008 1:43pm Mar 19, 2008 1:43pm
EJ testing lower tl. seeing the price action of EU and UJ now, a breakdown of EJ is likely.JMHO

Attached Image (click to enlarge)
Click to Enlarge Name: 1.9950.gif Size: 20 KB


Yuna
  • #747
  • Mar 19, 2008 2:04pm Mar 19, 2008 2:04pm
Quoting Umairs2004
NeverMind Buddy... Well Did you see NZD/JPY...???
It also was a chance to enter for long But was little late more than +60 Pip's was there...
Sorry for late responds. Nah, I missed that one Ah well, can't complain today, have been a very good day for breakouts !
Measure twice, cut once
  • #748
  • Mar 19, 2008 2:08pm Mar 19, 2008 2:08pm
Quoting yuna
Hello everyone! wow, seems like i missed a couple of good setups. was caught up with work lately.. hmm, anyone missed my presence? LOL

Geppy, pinocchio at monthy S2/weekly pp area followed by a breakdown@ 800GMT.

Attachment

yuna
Hi Yuna good to see you back

Great observation with the PA there, really strong setup when PA forms around S/R.

Edit: I can't believe I missed that ! Yuna, your vacation have been withdrawn : We need some nice eyes who can see it all lol !
Measure twice, cut once
  • #749
  • Mar 19, 2008 2:24pm Mar 19, 2008 2:24pm
Quoting aediaz1
Hi Yuna good to see you back

Great observation with the PA there, really strong setup when PA forms around S/R.

Edit: I can't believe I missed that ! Yuna, your vacation have been withdrawn : We need some nice eyes who can see it all lol !
Aediaz1! nice to see ya again too haha, how i wish i was really on vacation . i think u missed that because u kept thinking of me, WAHAHA

have a question here..

Quote
I don't see your whole upper line, but remember to have strong lines they need to be tested at least 2 times.

But yes, I favor downside on this, look at the volumes too (increasing, giving breakout more credibility). This could go down fast.

i thought volume is not really true volume when used in fx? or am i wrong? because from my limited understanding, volume is not reliable in fx. enlight plz

Yuna
  • #750
  • Mar 19, 2008 2:44pm Mar 19, 2008 2:44pm
my current GBPJPY support and resistance levels... based on levels sensor indicator. Support and resistance levels are where the histogram has less bars closing at that price.. so where there is a hole in the histogram. as where I manually indicate with the magenta lines.
Attached Image
  • #751
  • Mar 19, 2008 2:52pm Mar 19, 2008 2:52pm
Quoting yuna
Aediaz1! nice to see ya again too haha, how i wish i was really on vacation . i think u missed that because u kept thinking of me, WAHAHA

have a question here..



i thought volume is not really true volume when used in fx? or am i wrong? because from my limited understanding, volume is not reliable in fx. enlight plz

Yuna
Might be that my subconscious mind had another issue making me unfocused hmm

Volume can provide us with patterns from time to time. When patterns occur, it gives strong credibility to the potential breakout. In example, when we have a pennant and we see volume have decreasing volume from start of the pennant. When price start to form for a breakout, you should spot after increase on the volume.

I hope you got the picture from my statement. Notice that you should not use volume-indicator as trade-signal, only as a tool giving another potential edge to your breakout.

Take a look at cable earlier today;
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Measure twice, cut once
  • #752
  • Mar 19, 2008 2:57pm Mar 19, 2008 2:57pm
Quoting emda
my current GBPJPY support and resistance levels... based on levels sensor indicator. Support and resistance levels are where the histogram has less bars closing at that price.. so where there is a hole in the histogram. as where I manually indicate with the magenta lines.
Wow some fancy stuff you got there.

Have you tried comparing manually drawn lines contra your indicator ?

Just a wild assumption, but I bet some lines would match up ?

Don't we all love a new indicator
Measure twice, cut once
  • #753
  • Mar 19, 2008 3:09pm Mar 19, 2008 3:09pm
Quoting aediaz1
Wow some fancy stuff you got there.

Have you tried comparing manually drawn lines contra your indicator ?

Just a wild assumption, but I bet some lines would match up ?

Don't we all love a new indicator

yes they are always correct... look at this trade... I knew it was going down... and a trendline and the level hole was a perfect entry...
the manual trendline was between two trendlines.. usually trendlines are wide.... because I had two valid trendlines.. in this case.. price was rejected from the first one... it broke it a little to reahc the "Hole".. and then went down before reaching the second trendline... was nice.

by the way.... this magenta line I have at the bottom.. was the target of the Header and shoulder pattern. from months ago... cool !
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  • #754
  • Mar 19, 2008 3:15pm Mar 19, 2008 3:15pm
Quoting emda
yes they are always correct... look at this trade... I knew it was going down... and a trendline and the level hole was a perfect entry...
I see. 2 questions then;

  1. How would it react to pre-historical events? And when entering record levels I assume it would show zero ?
  2. I saw where you entered short because of the confluence between your indicator and TL. But I also noticed that your indicator shows resistance, we had a strong line tested 3 times. So the question is really simple; does it give another edge to S/R lines ? Does it show something we will not draw?

Thank you for sharing your indicator.

Measure twice, cut once
  • #755
  • Mar 19, 2008 3:17pm Mar 19, 2008 3:17pm
I recognize your name and avatar from some of Spudfyre's thread is that correct ?
Measure twice, cut once
  • #756
  • Mar 19, 2008 3:24pm Mar 19, 2008 3:24pm
yes I'm the same emda

about your questions.. yes.. at record levels.. histogram has zero values.. it only counts the closes of the bars in each level for a given number of bars or period... in that example.. yes it was easy to spot the resistance level... because is clear to see it manually... that is why the hole in the histogram as so clear... but some other times... the indicator shows you other levels that are not so easy to see manually... you can try it yourself... you will love it. I attach it here.
Attached File(s)
File Type: mq4 level_sensor_116.mq4   4 KB | 592 downloads
  • #757
  • Mar 19, 2008 3:33pm Mar 19, 2008 3:33pm
Quoting yuna
EJ testing lower tl. seeing the price action of EU and UJ now, a breakdown of EJ is likely.JMHO

Attachment

Yuna
Price indeed breakout but wasnt a nice clean break and not much movement in price action.

Attached Image (click to enlarge)
Click to Enlarge Name: 1.9950.gif Size: 20 KB


Yuna
  • #758
  • Mar 19, 2008 3:45pm Mar 19, 2008 3:45pm
Quoting emda
yes I'm the same emda

about your questions.. yes.. at record levels.. histogram has zero values.. it only counts the closes of the bars in each level for a given number of bars or period... in that example.. yes it was easy to spot the resistance level... because is clear to see it manually... that is why the hole in the histogram as so clear... but some other times... the indicator shows you other levels that are not so easy to see manually... you can try it yourself... you will love it. I attach it here.
Too bad he "left" us. I'm not good with indicators but he's MTF stochs contribution and explanation was truly gold.

Anyway, as stated, I love trying out new indicators like most traders do I assume lol.

I will test it, but allow me to be septic and rather look for disabilities rather than abilities at start. Who's the developer of this ?
Measure twice, cut once
  • #759
  • Mar 19, 2008 3:49pm Mar 19, 2008 3:49pm
Quoting yuna
Price indeed breakout but wasnt a nice clean break and not much movement in price action.

Attachment

Yuna
Trading breakouts on larger tf's @ this hour can be risky. I have a 15m chart for eurjpy;
Attached Image (click to enlarge)
Click to Enlarge Name: 15ej.jpg Size: 73 KB
Measure twice, cut once
  • #760
  • Mar 19, 2008 3:51pm Mar 19, 2008 3:51pm
Quoting aediaz1
Might be that my subconscious mind had another issue making me unfocused hmm

Volume can provide us with patterns from time to time. When patterns occur, it gives strong credibility to the potential breakout. In example, when we have a pennant and we see volume have decreasing volume from start of the pennant. When price start to form for a breakout, you should spot after increase on the volume.

I hope you got the picture from my statement. Notice that you should not use volume-indicator as trade-signal, only as a tool giving another potential edge to your breakout.

Take a look at cable earlier today;
i understand your point tt an increase in vol upon breakout adds credibility to the breakout and using it as a reference or tool. but is there reliability of vol in fx market? i mean the vol indicator is not the true vol.

Yuna
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