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Drawing correct resistance and support-lines

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  • #2,061
  • Jun 11, 2008 5:46am Jun 11, 2008 5:46am
Hi Dcb,

its so quietly... somethings going on here
better take a step back though shorting usd/cad looks like a good idea

Quoting Dcb
I will wait for tomorrow. These are the charts I am monitoring.
Hi Aediaz,

You're welcome! Nice thread u have here

Quoting aediaz1
Great link, thanks !
Invincibility lies in the defence, the possibility of victory in the attack
  • #2,062
  • Jun 11, 2008 7:48am Jun 11, 2008 7:48am
Hi guys,

I am a bit sick these last couple of days, flu, fever... You all know the drill!

Well, I presently going south on UJ.

We had an earlier break that didn't pay off. The weekly UTL kept rebuilding.

So, I guess we have a bounce from it as for now.

Here are the daily and the H4 charts.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usd_jpy_d1_11_06_2008_cross_trend.gif Size: 21 KB
Click to Enlarge Name: usd_jpy_h4_11_06_2008_utl_bounce.gif Size: 20 KB
  • #2,063
  • Jun 11, 2008 8:06am Jun 11, 2008 8:06am
Here are my H4 and D1 charts for USDCAD.

I am going short for the moment.

I have noticed that some pairs pay alot of "respect" pivot lines.

USDCAD is one of them.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usd_cad_h4_11_06_2008_utl_bounce.gif Size: 21 KB
Click to Enlarge Name: usd_cad_d1_11_06_2008_utl_bounce.gif Size: 20 KB
  • #2,064
  • Jun 11, 2008 8:53am Jun 11, 2008 8:53am
Hey guys,

I am also trading these.

Long on Cable;
Short on U/C;
Long on E/U

Here are the charts.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eur_usd_h4_11_06_2008_ltl_bounce.gif Size: 24 KB
Click to Enlarge Name: usd_chf_h4_11_06_2008_utl_bounce.gif Size: 25 KB
Click to Enlarge Name: gbp_usd_h4_11_06_2008_utl_bounce.gif Size: 24 KB
  • #2,065
  • Jun 11, 2008 10:26am Jun 11, 2008 10:26am
Hi guys,

I am getting some support inside a symmetrical triangle seen on USDCAD.

I am not sure if it's a continuation pattern or a reversal one.

Lets see. Iam still short.
Attached Image (click to enlarge)
Click to Enlarge Name: usd_cad_h4_11_06_2008_triangle_hold.gif Size: 20 KB
  • #2,066
  • Edited 3:15am Jun 12, 2008 2:50am | Edited 3:15am
Quoting jupiter_peak
Hi guys,

I am getting some support inside a symmetrical triangle seen on USDCAD.

I am not sure if it's a continuation pattern or a reversal one.

Lets see. Iam still short.
Dear Jupiter, you are over-drawing your charts. You're trying to include every swing of the markets with lines. It's impossible. Every price-move can't be explained nor have any technical issues. This is very important aspect to understand. Remember that those perfect price-patterns don't happened every hour. Sometimes it can go even days without occurring any perfect pattern.

A week or 2 ago you where on the right track. Look back at your charts and compare them.

I hope you understand why I'm saying this. Keep it up !
Measure twice, cut once
  • #2,067
  • Jun 12, 2008 3:16am Jun 12, 2008 3:16am
Quoting aediaz1
Dear Jupiter, you are over-drawing your charts. You're trying to include every swing of the markets with lines. It's impossible. Every price-move can't be explained nor have any technical issues. This is very important aspect to understand. Remember that those perfect price-patterns don't happened every hour. Sometimes it can go even days without occurring any perfect pattern.

A week or 2 ago you where on the right track. Look back at your charts and compare them with this.

I hope you understand why I'm saying this. Keep it up !
lol i was ready to post the same about jupiter's screenshot's. His charts are fully loaded with lot of un necessery lines , I think he have to concentrate on just important price movement to draw correct lines , instead of every price movement , Agreed with You Aediaz
  • #2,068
  • Jun 12, 2008 3:17am Jun 12, 2008 3:17am
e/u testing daily support for the fourth time;
Attached Image (click to enlarge)
Click to Enlarge Name: eudaily.gif Size: 16 KB
Measure twice, cut once
  • #2,069
  • Jun 12, 2008 3:04pm Jun 12, 2008 3:04pm
Quoting aediaz1
Dear Jupiter, you are over-drawing your charts. You're trying to include every swing of the markets with lines. It's impossible. Every price-move can't be explained nor have any technical issues. This is very important aspect to understand. Remember that those perfect price-patterns don't happened every hour. Sometimes it can go even days without occurring any perfect pattern.

A week or 2 ago you where on the right track. Look back at your charts and compare them.

I hope you understand why I'm saying this. Keep it up !

Hi Aediaz,

Thank you so much for your advice!!I was beginning to have nighmares with all those lines.

Here I attach a few charts "redrawn".
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gbp_usd_d1_12_06_2008.gif Size: 23 KB
Click to Enlarge Name: usd_chf_d1_12_06_2008.gif Size: 17 KB
Click to Enlarge Name: usd_cad_d1_12_06_2008.gif Size: 19 KB
  • #2,070
  • Jun 12, 2008 4:11pm Jun 12, 2008 4:11pm
Quoting jupiter_peak
Hi Aediaz,

Thank you so much for your advice!!I was beginning to have nighmares with all those lines.

Here I attach a few charts "redrawn".
Much, much better ! Clear, straight-on, efficient and easy
Measure twice, cut once
  • #2,071
  • Jun 13, 2008 4:44am Jun 13, 2008 4:44am
Important area on u/j. Facing possible resistance on daily chart;
Attached Image (click to enlarge)
Click to Enlarge Name: ujdaily.jpg Size: 89 KB
Measure twice, cut once
  • #2,072
  • Jun 13, 2008 6:08am Jun 13, 2008 6:08am
Quoting aediaz1
Important area on u/j. Facing possible resistance on daily chart;
The E/U and the USD/CHF are in very similar situations.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: E.U.png Size: 23 KB
Click to Enlarge Name: U.C.png Size: 17 KB
  • #2,073
  • Jun 13, 2008 7:53am Jun 13, 2008 7:53am
I am getting a very close second support that can be spotted from H4.

The news were not quite able to make the price quite break that second support.
Attached Image (click to enlarge)
Click to Enlarge Name: eur_usd_h4_13_06_2008_double_support.gif Size: 21 KB
  • #2,074
  • Edited 8:03am Jun 13, 2008 8:01am | Edited 8:03am
Quoting jupiter_peak
I am getting a very close second support that can be spotted from H4.

The news were not quite able to make the price quite break that second support.
See The 4-Hour chart. 1.5365 level (Support Line)is already break & after that so far +65 Pip's E/U Dropps so far & i managed to lock mu own Pip's.
Attached Image (click to enlarge)
Click to Enlarge Name: eurousd2.GIF Size: 35 KB
  • #2,075
  • Jun 13, 2008 8:23am Jun 13, 2008 8:23am
Quoting Umairs2004
See The 4-Hour chart. 1.5365 level (Support Line)is already break & after that so far +65 Pip's E/U Dropps so far & i managed to lock mu own Pip's.

Umairs,

Like I said, there's another support @1.5317. Have a closer look at your 4H chart. You might experience price flatenning at tht level. I went short after the break, but I am long from that second support.

I also placed a sell stop order below that secod resistance.
Attached Image (click to enlarge)
Click to Enlarge Name: eur_usd_h4_13_06_2008_double_support_indicador.gif Size: 26 KB
  • #2,076
  • Jun 13, 2008 8:42am Jun 13, 2008 8:42am
Quoting Umairs2004
See The 4-Hour chart. 1.5365 level (Support Line)is already break & after that so far +65 Pip's E/U Dropps so far & i managed to lock mu own Pip's.
Do you use limit orders on the H4 charts? I can only focus on the market movement for the first 4 hours of the London session, so I look for the daytrading opportunities during that time. I am considering using limit orders based on S/R to enter an try to stay in the market until I see a possible reversal. I can use my laptop to check my progress, and I can set alerts to my cell phone when I enter, so I can enter a SL. What do you think?
  • #2,077
  • Jun 13, 2008 12:19pm Jun 13, 2008 12:19pm
Quoting Dcb
Do you use limit orders on the H4 charts? I can only focus on the market movement for the first 4 hours of the London session, so I look for the daytrading opportunities during that time. I am considering using limit orders based on S/R to enter an try to stay in the market until I see a possible reversal. I can use my laptop to check my progress, and I can set alerts to my cell phone when I enter, so I can enter a SL. What do you think?

Hope you can undertand thrhough this drawing how do I use limit/stop orders.

You can find a really complete explanation in Mr. Toshchakov's/Igrok book:"Beat the Odds in Forex Trading".

But I think this image is pretty much self-explenatory.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: examples of limit orders.jpg Size: 96 KB
Click to Enlarge Name: buy_order_2.jpg Size: 99 KB
  • #2,078
  • Jun 13, 2008 1:21pm Jun 13, 2008 1:21pm
Quoting Umairs2004
See The 4-Hour chart. 1.5365 level (Support Line)is already break & after that so far +65 Pip's E/U Dropps so far & i managed to lock mu own Pip's.
Umairs,

Cashed 70 pips south + 70 pips north and am currently in profit going south again. Remember that second support I told you about? Making "textbook" orders to and fro those two support(1st now resistance) lines.

Maybe you are now wondering why your profit was limited or imagined that it could be a fake break? I truly believe you could have a "better" look at your chart. A good suggestion would be to zoom out your chart to help out identify points of support/resistance. I would also mention that I find your support line a little bit off. I believe you could of made some more profit it you could draw it a "little" bit more precise.

I had already mentioned this support in one of my previous posts a few weeks ago or so.

Here is the chart where the 1st support (now resistance) is @ 1.5388

Just a sugestion.


Quote
=Do you use limit orders on the H4 charts? I can only focus on the market movement for the first 4 hours of the London session, so I look for the daytrading opportunities during that time. I am considering using limit orders based on S/R to enter an try to stay in the market until I see a possible reversal. I can use my laptop to check my progress, and I can set alerts to my cell phone when I enter, so I can enter a SL. What do you think?


Dcb,

This chart below is a good demonstration on how to make profit using limit/stop orders.

TP & buy before support, TP and sell before resistance. Also, place safety orders above resistance (buy) and below resistance (sell).

A lot of work, but it's woth it.
Attached Image (click to enlarge)
Click to Enlarge Name: eur_usd_h1_13_06_2008_res_supp_trading.gif Size: 18 KB
  • #2,079
  • Jun 13, 2008 9:27pm Jun 13, 2008 9:27pm
...
Attached Image (click to enlarge)
Click to Enlarge Name: HOURLY GJ.GIF Size: 30 KB
  • #2,080
  • Jun 14, 2008 3:45pm Jun 14, 2008 3:45pm
Quoting jupiter_peak
Umairs,

Cashed 70 pips south + 70 pips north and am currently in profit going south again. Remember that second support I told you about? Making "textbook" orders to and fro those two support(1st now resistance) lines.

Maybe you are now wondering why your profit was limited or imagined that it could be a fake break? I truly believe you could have a "better" look at your chart. A good suggestion would be to zoom out your chart to help out identify points of support/resistance. I would also mention that I find your support line a little bit off. I believe you could of made some more profit it you could draw it a "little" bit more precise.

I had already mentioned this support in one of my previous posts a few weeks ago or so.

Here is the chart where the 1st support (now resistance) is @ 1.5388

Just a sugestion.




Dcb,

This chart below is a good demonstration on how to make profit using limit/stop orders.

TP & buy before support, TP and sell before resistance. Also, place safety orders above resistance (buy) and below resistance (sell).

A lot of work, but it's woth it.
Jupiter,
Thank you for your response. I have read the book, "Beat the Odds in Forex Trading", and I will do more study. I have used limit orders when I traded futures, but when I have used them with forex the price went a distance, and then retraced its steps. I am going to try to use limit orders next week. I will let you know how I do.
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