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Drawing correct resistance and support-lines

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  • #2,281
  • Jul 3, 2008 5:37am Jul 3, 2008 5:37am
Umairs thanx a lot mate for time and experience,it seems we have both come to similar conclusions for these smaller tf patterns.will respond again when iv looked further into your entry methods.
PATIENCE... DISCIPLINE
  • #2,282
  • Jul 3, 2008 5:47am Jul 3, 2008 5:47am
Placing S/R Lines are as easy as Trendlines. You simply just have to find the highs in your chart's in which market makes it high and than retraces back for atleast 2/3 down candles so on that high you plot your resistance line and vice-versas for support line.
I use QQE Indicator to avide from fakeout's. also i use S/R lines in 4-hour and in daily , weekly charts and enters excat after the break. see the screenshot's for more detail
( Both these screenshot's are from another educational sites)
Thank's
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  • #2,283
  • Jul 3, 2008 8:17am Jul 3, 2008 8:17am
Today was a great demosntration wit all those news.

This just rekindles my moto "Do not try to forecast the future. If we could, we would be ZILLIONAIRES".

Today was a greta demosntration of why not trade the news. Also a greta demonstration of: know your CRITICAL lines and trade to and from them.

Sometimes I laugh my self out loud with so many threads here @ FF filled with so called "fundamental experts" trying to forecast the future...

This gives me more and more conviction that TA, staying away from the news is my best bet.

Later...
  • #2,284
  • Jul 3, 2008 11:25am Jul 3, 2008 11:25am
hey umair did you take this trade sometime back??? I hope this is correct according to your system and the basic of trendline trading.
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  • #2,285
  • Jul 3, 2008 11:39am Jul 3, 2008 11:39am
Umair do you wait for the qqe crossover before you trade the break of the tl?
  • #2,286
  • Jul 3, 2008 12:10pm Jul 3, 2008 12:10pm
Quoting bksujal
hey umair did you take this trade sometime back??? I hope this is correct according to your system and the basic of trendline trading.
hi there bksujal,this is were i would have put mine,zoom out to see on your chart.
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  • #2,287
  • Edited 12:37pm Jul 3, 2008 12:29pm | Edited 12:37pm
here is my take on the trade today,a break of a broadening pattern with bearish divergence on good res.been waiting to short this pair all week,so this came as no suprise.turned out to be a v good move!!
the 4h chart is were i see the price now.price has been held by strong suport for now,its a v good time to look for trades in this pair.
strong pivot + trendline + fib retrace = reaction from price!!!
hope this helps,happy hunting
jon
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  • #2,288
  • Jul 3, 2008 12:44pm Jul 3, 2008 12:44pm
Quoting bksujal
hey umair did you take this trade sometime back??? I hope this is correct according to your system and the basic of trendline trading.
Yes You have did a very good job. But the candle which breaks the lower line seems to me a news candle. Anyway's your setup seems to me very good.
  • #2,289
  • Jul 3, 2008 12:46pm Jul 3, 2008 12:46pm
correct chart,sos
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PATIENCE... DISCIPLINE
  • #2,290
  • Jul 3, 2008 12:48pm Jul 3, 2008 12:48pm
hey Umairs,what do you think of the broadening wedge pattern??
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  • #2,291
  • Jul 3, 2008 12:50pm Jul 3, 2008 12:50pm
Quoting bksujal
Umair do you wait for the qqe crossover before you trade the break of the tl?
No In lowertime frame like 30-minute if i found the entry chance after any breakout than i see qqe. If it seems to me very near to cross than i enter in that case without even wait for the cross. Most of time you may find this situation. But dont hesitate and dont worry. Try to develop your confidence.
In 4-Hour chart i also do the same trick. But i,ll recommend you to wait for the qqe to cross coz here situation is different as you have to enters in a same candle after the break. So batter for you that on the time of any breakout qqe already have to crossed each or almost crossed each.
  • #2,292
  • Jul 3, 2008 12:59pm Jul 3, 2008 12:59pm
Quoting g_j_hook@yah
hey Umairs,what do you think of the broadening wedge pattern??
Well i consider this wedge pattren as little risky.As thier is a much chance to draw invalid lines most of times. You guys might have observed that i use very simple trendlines but effective one also in lower tf like 30-minute & hourly also.
Anyways Aediaz do use this method much batter than me
If you read this thread from start you will find lot of example with screenshots posted by Aediaz there. It might be usefull for you if you are intrested in this wedge pattren.
  • #2,293
  • Jul 3, 2008 1:08pm Jul 3, 2008 1:08pm
Quoting Umairs2004
Well i consider this wedge pattren as little risky.As thier is a much chance to draw invalid lines most of times. You guys might have observed that i use very simple trendlines but effective one also in lower tf like 30-minute & hourly also.
Anyways Aediaz do use this method much batter than me
If you read this thread from start you will find lot of example with screenshots posted by Aediaz there. It might be usefull for you if you are intrested in this wedge pattren.
thanx,to be honest its not a pattern i play either,BUT on this occasion it was the lower support break i found legit(for me)and would have played it, i dont know enough about the pattern,i also understand its really a long term pattern. http://www.forexfactory.com/images/icons/icon14.gif
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  • #2,294
  • Jul 3, 2008 1:24pm Jul 3, 2008 1:24pm
Thank's Jon
Hey BkSujal see this breakout in 4-Hour chart for almost +70/80 Pip's wow it was great chance. Anyways you are using Odl's demo maybe your 4-Hour chart shows different candles formation than My charts coz of difference in open/close time by both brokers.
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  • #2,295
  • Jul 4, 2008 1:33am Jul 4, 2008 1:33am
speakin of gb/us...
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PATIENCE... DISCIPLINE
  • #2,296
  • Jul 4, 2008 3:47pm Jul 4, 2008 3:47pm
Quoting emda
Yes... Spudfyre was a great contributor to the forum... I really hope he is ok and millionaire. I still use the stochs threads theory.

it's ok... I don't remember where I got the indicator... it only indicates if there is a price where the pair has not been recently... in such way.. it acts as a support and resistance level... but all the support and resistance levels are broken at some point... usually I only look for strong holes in the histogram.
For this indicator "level sensor" if price should retreat into an area where there is not much histogram activity, would this be an area of support?
Please see attached chart.
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  • #2,297
  • Jul 5, 2008 7:19am Jul 5, 2008 7:19am
I am getting a Diamond formation seen on 30m EU.

Could anyone confirm?

Cheers.
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  • #2,298
  • Jul 5, 2008 7:34am Jul 5, 2008 7:34am
Quoting jupiter_peak
I am getting a Diamond formation seen on 30m EU.

Could anyone confirm?

Cheers.

I have drawn it even better. Looks like it's ready to break on the upside.

I am already long on this one.
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  • #2,299
  • Jul 5, 2008 7:37am Jul 5, 2008 7:37am
this looks promising,bouncing off support in a recently form uptrend
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  • #2,300
  • Jul 5, 2008 9:47am Jul 5, 2008 9:47am
Expect this diamond bottom to go up 71 pips from breakout.

Let's see how it plays out.
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