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Drawing correct resistance and support-lines

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  • #1,561
  • May 2, 2008 3:08am May 2, 2008 3:08am
paj appreciate your help with metatrader platform but i don't find it very friendly have spent ages trying to configure and have now given up for a while at least .
  • #1,562
  • May 2, 2008 3:40am May 2, 2008 3:40am
Quoting Dcb
HI joypips, This is a great thread, but it is up to us to make sure it does not die. Aediaz gives good advice and instruction. I enjoy the traders' insight and alerts. The traders here are supportive and encouraging. I also have a job I will have to go to. I closed my E/U position with a 10 pip loss. I should had known better than to enter before the U.S. payroll number coming out. Here is my last chart for the day. Have a great weekend.
I might as well add if your playing with low SL, the probability for being stopped out is very high. I see your thinking here, I believe, entering when price touched higher peak. It was not an bad trade. Might only be an tight SL, IMO.

I also entered long .5490 but I'm going to hold this most likely down to .5425 area. If this trade goes against me, I will only lose a small % of my account. But this trade is still valid until .5425 is reached, IMO.

Enjoy your weekend, Dcb !

Notice this flag on usd/chf;
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Measure twice, cut once
  • #1,563
  • May 2, 2008 5:20am May 2, 2008 5:20am
Big news in 10m guys.
Measure twice, cut once
  • #1,564
  • May 2, 2008 6:31am May 2, 2008 6:31am
Posted this in another thread but might as well post it here. Calculated TP by measuring distance inside pattern;
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Measure twice, cut once
  • #1,565
  • May 2, 2008 6:35am May 2, 2008 6:35am
Flag-target achieved.
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Measure twice, cut once
  • #1,566
  • May 2, 2008 11:56am May 2, 2008 11:56am
Quoting joypips
paj appreciate your help with metatrader platform but i don't find it very friendly have spent ages trying to configure and have now given up for a while at least .
I know it takes time, I found some useful video tutorials on youtube, just search on metatrader and you should get some instruction there. I will be trading next week, although Monday is a holiday in UK, so London session may be dull?

Have a good weekend

Paj
  • #1,567
  • May 4, 2008 1:27pm May 4, 2008 1:27pm
Some areas of S/R on G/J.

What is support and resistance ?

Places where price spend the least time on your chart.

Try and spot those events on your chart. If the same reaction happens twice you have a strong S/R.

In my experience, double tops have proven to increase the probability for reversal by a significant amount as shown on 4h chart here;
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Measure twice, cut once
  • #1,568
  • May 5, 2008 7:42am May 5, 2008 7:42am
This double top provide us with the probability (in favor) of more downside, IMO;
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Measure twice, cut once
  • #1,569
  • May 5, 2008 6:09pm May 5, 2008 6:09pm
Great thread! Learnt alot from all the charts and trades you have showed in here Maybe I can contribute some, but I am mostly at a level where I can learn.

Jon
Do what thou wilt shall be the whole of the law.
  • #1,570
  • Edited 10:33pm May 5, 2008 10:30pm | Edited 10:33pm
I spoke to a good mate who is a trader for one of our major banks here in Aus (ANZ).

He says that support/resistance and fibo are the main techy indicators used.

He also said to draw them from close prices, not candle stick high/lows and it is best to draw them on line charts without the high/low prices as it is easier to spot/confirm breakouts.

Is this right? I tend to believe him, because he's loaded with $$$$. Lives in Noosa QLD on a waterfront home (5+ million minimum to get yourself one of them).

What do you think aediaz1?
  • #1,571
  • May 5, 2008 10:59pm May 5, 2008 10:59pm
I used just this one tl, which claims that downtrend is over (you did not have this latest PA available).

IMO euro tried to retrace earlier, at 1.555 level but the news messed that.

R

Quoting aediaz1
This double top provide us with the probability (in favor) of more downside, IMO;
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  • #1,572
  • May 6, 2008 12:56am May 6, 2008 12:56am
Quoting itechdev
I spoke to a good mate who is a trader for one of our major banks here in Aus (ANZ).

He says that support/resistance and fibo are the main techy indicators used.

He also said to draw them from close prices, not candle stick high/lows and it is best to draw them on line charts without the high/low prices as it is easier to spot/confirm breakouts.

Is this right? I tend to believe him, because he's loaded with $$$$. Lives in Noosa QLD on a waterfront home (5+ million minimum to get yourself one of them).

What do you think aediaz1?
He seems to be right then But for me I like to include those candlesticks as much as possible when drawing TL simply because it includes more of the price swings. But sometimes it helps you to see it the logical way. Would my lines make lesser/larger significant effect this/that way?

When it comes to different pattern like flags and pennants, I allow myself to see price peaks a bit through those lines without panicking. So for those price-patterns I actually think drawing from closing-price would work the best.

I might as well add that sometimes the outcome/difference be rather small, depending of how you trade, of course. If you look at 4h chart G/J (flag pattern) you see the difference on including/excluding price. Red is drawn on close. If you're trading with close, you would wait for price to close above those red lines. If you include all swings you will enter when price enters above previous high/low. This is just my experience, so I guess someone could argue for the opposite.
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Measure twice, cut once
  • #1,573
  • May 6, 2008 12:59am May 6, 2008 12:59am
Quoting arralou
Great thread! Learnt alot from all the charts and trades you have showed in here Maybe I can contribute some, but I am mostly at a level where I can learn.

Jon
Glad to hear, Jon
Measure twice, cut once
  • #1,574
  • May 6, 2008 1:06am May 6, 2008 1:06am
Quoting Rocroy
I used just this one tl, which claims that downtrend is over (you did not have this latest PA available).

IMO euro tried to retrace earlier, at 1.555 level but the news messed that.

R



Attachment
Yeah, those double top didn't hold price back at all. If support on daily chart holds (which I forgot to include when I posted double top chart) we should see continuation of long-term trend. E/u have done declines in this seize before without turning bearish.
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Measure twice, cut once
  • #1,575
  • May 6, 2008 1:28am May 6, 2008 1:28am
Waiting for GBP news.
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  • #1,576
  • May 6, 2008 1:43am May 6, 2008 1:43am
I sold the G/U and exited as I watched it trying to pull back. I had a 22 pip gain.
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  • #1,577
  • May 6, 2008 1:53am May 6, 2008 1:53am
I was too quick to exit my G/U trade, but that is done. I am now waiting for more EUR news.
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  • #1,578
  • May 6, 2008 2:03am May 6, 2008 2:03am
Take a look at daily chart, and draw supporting trendline there. GU might bounce from that, especially now that euro is traveling north again.

R

Quoting Dcb
Waiting for GBP news.
  • #1,579
  • May 6, 2008 2:10am May 6, 2008 2:10am
Quoting Rocroy
Take a look at daily chart, and draw supporting trendline there. GU might bounce from that, especially now that euro is traveling north again.

R
I had looked at the Daily G/U, but it is so ugly, to volatile, so I focused on H1. I am watching how the E/U does not have the strength to move up.
  • #1,580
  • May 6, 2008 2:24am May 6, 2008 2:24am
Difficult market today, technically speaking. Kick me in leg if I'm missing something. I spot few good reasons to trade right now.
Measure twice, cut once
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