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Drawing correct resistance and support-lines

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  • #1,801
  • May 23, 2008 8:18am May 23, 2008 8:18am
Quoting jupiter_peak
I agree.

0.9848 seems to be the barrier. Once we have a valid break, it should go down. D1 is also pointing down and was rejected on the upside at 0.9860.

Once it breaks, we should have a good pip round.
Jupiter,
I can not trade at this time, but next week I am going to give attention to the U/C and A.U.
  • #1,802
  • May 23, 2008 4:57pm May 23, 2008 4:57pm
Quoting Dcb
Aediaz,
Please check my analysis of the G/U. I believe it will move up. The range of the of the TLs is 236 PIPs, so I believe it can have that kind of move if it breaks out on the upside. What do you think?
Measuring possible (breakout) targets based on range works best when you have different price-patterns, in my experience. The probability is larger comparing with "non-patterns" range if you understand. I.e; like with triangles (high-low inside added to breakout-level), pennants/flags (half of the flagpole length added to breakout-level).

Here is an example of triangle e/u;

1h cable chart;
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eu.jpg Size: 100 KB
Click to Enlarge Name: cable.gif Size: 12 KB
Measure twice, cut once
  • #1,803
  • May 23, 2008 5:54pm May 23, 2008 5:54pm
Quoting Dcb
Aediaz,
Please check my analysis of the G/U. I believe it will move up. The range of the of the TLs is 236 PIPs, so I believe it can have that kind of move if it breaks out on the upside. What do you think?

Eh....i wont bank on that...aediaz1 has a point though...My experience with that is that for every time it worked for me..it "compliments" with a failure as well...one way is to look for major S/R areas for the past 3 to 5 days to see within that breakout range if there is any barriers to cross

I belief many would add fibs, average ranges, OB/OS to gauge as well...remember to keep it simple.

mt

Hi aediaz1, how have u been ? been away doing a "project"...looking forward to exchange pointers with you again
  • #1,804
  • May 23, 2008 6:01pm May 23, 2008 6:01pm
How come nobody is talking about EUR/USD here ?
  • #1,805
  • May 23, 2008 8:10pm May 23, 2008 8:10pm
Quoting aiyahmarklah
How come nobody is talking about EUR/USD here ?

Hey aiyahmarklah,

You are absolutely right. Left it sideways for a couple of days. Made a good break for E/U and USDCHF the other day so I though they would take a while for another significant break.

E/U. - Strong resistance at 1.5800. Both at H4 and daily. I have a triangle pattern with the UTL coinciding with R1. This means that if it indeed breaks this resistance, we could head to 1.5902 or so. It would be a very nice thing. Good news from the US today prevented the break. I was hoping for the best but it didn't happen. Lets see how it unfolds this upcoming week. Trend is upwards.

U/C - Like mentioned before, goes opposite from E/U. Like E/U, made an awsome break this last week ( I was lucky to get a piece of both). I have a triangle pattern that was broken at the UTL today but the news (here they are again) from America made it head back up. In normal conditions, it probably would made its way down. That doesn't mean it won't happen this upcoming week. 1.0215 is stalling the price. Once and if it breaks this level, I would go short and put a big smile on my face.

Have a nice weekend guys. See ya monday.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usd_chf_h4_23_05_2008_break_didnt_make.gif Size: 30 KB
Click to Enlarge Name: eur_usd_h4_23_05_2008_break_didnt_make.gif Size: 31 KB
  • #1,806
  • May 24, 2008 2:25pm May 24, 2008 2:25pm
Drawing correct resistance and support-lines?



http://i26.tinypic.com/n4d3bn.gif



Let the computer do it for you.
  • #1,807
  • May 24, 2008 4:03pm May 24, 2008 4:03pm
[quote=jupiter_peak;2017930]Hey aiyahmarklah,

You are absolutely right. Left it sideways for a couple of days. Made a good break for E/U and USDCHF the other day so I though they would take a while for another significant break.

E/U. - Strong resistance at 1.5800. Both at H4 and daily. I have a triangle pattern with the UTL coinciding with R1. This means that if it indeed breaks this resistance, we could head to 1.5902 or so. It would be a very nice thing. Good news from the US today prevented the break. I was hoping for the best but it didn't happen. Lets see how it unfolds this upcoming week. Trend is upwards.

U/C - Like mentioned before, goes opposite from E/U. Like E/U, made an awsome break this last week ( I was lucky to get a piece of both). I have a triangle pattern that was broken at the UTL today but the news (here they are again) from America made it head back up. In normal conditions, it probably would made its way down. That doesn't mean it won't happen this upcoming week. 1.0215 is stalling the price. Once and if it breaks this level, I would go short and put a big smile on my face.



Point well taken...
  • #1,808
  • May 24, 2008 4:11pm May 24, 2008 4:11pm
Wow...how do you "read" those lines ?

I like the idea of computer automation but kinda takes the fun out of it isn't it ? Just my feelings

But one can blame the software instead of themselves when things goes wrong...not bad...well the usual caveats still apply
  • #1,809
  • May 24, 2008 4:18pm May 24, 2008 4:18pm
Quoting aiyahmarklah
Wow...how do you "read" those lines ?

I like the idea of computer automation but kinda takes the fun out of it isn't it ? Just my feelings

But one can blame the software instead of themselves when things goes wrong...not bad...well the usual caveats still apply
http://i32.tinypic.com/10z70j6.gif



If it is hard for you do see, you can make the candles bigger.

Magenta is current resistance / trend. Aqua is current support / trend.

Red is past resistance / trend. Blue is current support / trend.

Nothing to blame. Trading is just decisions. Some are profitable and some are not.
  • #1,810
  • May 24, 2008 4:34pm May 24, 2008 4:34pm
Quoting SBrickman
Drawing correct resistance and support-lines?



http://i26.tinypic.com/n4d3bn.gif



Let the computer do it for you.

But is it an indicator you developed or something?
  • #1,811
  • May 24, 2008 5:21pm May 24, 2008 5:21pm
No. It is one that can be found on the net. There is more than one version. I don't develop indicators. I have already been suspended once for "violating" rule #1. I will not do anything that can even be remotely construed as rule breaking such as posting code, links, spam, etc...
  • #1,812
  • Edited 6:26pm May 24, 2008 6:15pm | Edited 6:26pm
Quoting SBrickman
No. It is one that can be found on the net. There is more than one version. I don't develop indicators. I have already been suspended once for "violating" rule #1. I will not do anything that can even be remotely construed as rule breaking such as posting code, links, spam, etc...
Hi SBrickman,

Nobody asked you to post anything. Sorry if you understood this way.


I just asked a rather naive question because I have never seen this ammount of lines on a screen before. Therefore it doesn't look very "human" if you will...

I believe that this thread has gone over the aspect of simply drawing correct S/Rs and evoluted to the aspect of knowing what to do once:

1) There is a pattern (formation such as channels, triangles, pennants, flags etc.);
2) Price level has reached some type of level (price action) where a necesary decision has to be made.

As you have posted, people can always use technology or learn. For technology help, people can search the 'NET. If they want to learn the concepts, they can read this thread from the beginning or buy books like Tom DeMarks' ones. It's a very personal choice which I truly don't want to get into...

I firmly believe that a combination of humanly acts with technology acts is the superb combination at last. As always, technology was built by us, humans, and in this particular case was backed up by human concepts. Therefore, I use them both.

Thanks for your 'tech' input. Could be helpful to alot of people.

Jupiter.
  • #1,813
  • May 24, 2008 7:09pm May 24, 2008 7:09pm
YOU CAN TURN OFF THE OLD LINES AND JUST PLOT THE MOST RECENT ONES.


http://i27.tinypic.com/2h7fnyo.gif



But it is sometimes helpful (profitable) to know the old S/R levels.


http://i29.tinypic.com/978e12.gif



Going long at 103.20 was profitable.


You're welcome.
  • #1,814
  • May 24, 2008 11:30pm May 24, 2008 11:30pm
Quoting SBrickman


If it is hard for you do see, you can make the candles bigger.

Magenta is current resistance / trend. Aqua is current support / trend.

Red is past resistance / trend. Blue is current support / trend.

Nothing to blame. Trading is just decisions. Some are profitable and some are not.

What you have there is indeed good stuff...drawing S/R lines are so subjective sometimes that knowing what to ignore or include requires the individual's experience and skill level.

I sure embrace technology....but i really meant well when I say it is better to blame the technology than oneself in trading when things go wrong....better for health
  • #1,815
  • May 25, 2008 10:10am May 25, 2008 10:10am
Quoting aiyahmarklah
Eh....i wont bank on that...aediaz1 has a point though...My experience with that is that for every time it worked for me..it "compliments" with a failure as well...one way is to look for major S/R areas for the past 3 to 5 days to see within that breakout range if there is any barriers to cross

I belief many would add fibs, average ranges, OB/OS to gauge as well...remember to keep it simple.

mt

Hi aediaz1, how have u been ? been away doing a "project"...looking forward to exchange pointers with you again
Hi Mark, good to see you back again ! I'm good, thanks and hope you are too with your project(s). Looking forward to see you post (analyzes) again
Measure twice, cut once
  • #1,816
  • May 27, 2008 2:47am May 27, 2008 2:47am
EUR/USD & USD/CHF

fundamental directional shift ? or just correction ?
  • #1,817
  • May 27, 2008 3:24am May 27, 2008 3:24am
Quoting aiyahmarklah
EUR/USD & USD/CHF

fundamental directional shift ? or just correction ?
I am expecting the USD/CHF to go down, and the EUR/USD to go up.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: U.C.png Size: 20 KB
Click to Enlarge Name: E.U.png Size: 24 KB
  • #1,818
  • May 27, 2008 3:53am May 27, 2008 3:53am
It looks like things will not start really moving until after the U.S. opens.
  • #1,819
  • May 27, 2008 4:18am May 27, 2008 4:18am
Quoting aiyahmarklah
EUR/USD & USD/CHF

fundamental directional shift ? or just correction ?
E/u have done a correction, IMO, and seems like it's back to long-term trend;
Attached Image (click to enlarge)
Click to Enlarge Name: eu.jpg Size: 94 KB
Measure twice, cut once
  • #1,820
  • May 27, 2008 4:37am May 27, 2008 4:37am
Hey guys...

I share the same sentiments...trying to establish a directional bias as they tend to go one way throughout the whole day (though not recently)....making my job fustrating....

Lets follow the action and see where its brings especially after the US data numbers.

All the best !!
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