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soltani's support/resistance trading

  • #41
  • Jul 10, 2008 5:15pm Jul 10, 2008 5:15pm
Quoting leo9
Hi Soltani,
I didn't understand when you said 'touches'. Do you mean resistance/support area touches ??. Could you please eloborate on how you take a trade. For me I try to place in trade between daily pivot and first resistance/support area. For EUR/USD it works really nice. I will apreciate if could please explain how you take a trade.

Thanks
Leo
Sure Leo,

Here goes: My style of trading is based on support/resistance. So I usually wait for a resistance to form and after it breaks I enter on the pullback. Now sometimes that resistance turns into support and I can profit from it. Sometimes it just slices right through it.

Here I've posted two charts.
usd/chf 4 hour:
On the 4 hour chart, price was obviously stalling at around 1.0220, hence forming a resistance. Price later shot right through it and came back to it which also happened to be the 50 retracement (The probabilities increase when there is confluence). T/P should've been around 1.0345 because of the major support there. It's so major that the support would've even been seen on the daily.

usd/chf 1 hour:
On the same trade that I mentioned above, you can see another opportunity in the 1 hour. After price had broken 1.0220 and retraced back to it, it formed another resistance at around 1.0275. Naturally it retraced back to it and shot up again to the same support that I mentioned before, 1.0345.

So when I say "touches", it means that I put a limit on the resistance or support that has been broken. If I sound confusing, feel free to ask again. I'll try to explain it in a different way.
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  • #42
  • Jul 10, 2008 5:23pm Jul 10, 2008 5:23pm
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  • #43
  • Jul 10, 2008 6:56pm Jul 10, 2008 6:56pm
Quoting soltani
I just use the rectangle option in Metatrader to draw them. You can find it in: Insert, Shapes, Rectangle. Hope this helps.
Thank you soltani.I will try it.
  • #44
  • Jul 10, 2008 7:18pm Jul 10, 2008 7:18pm
Quoting forex4me
Thank you soltani.I will try it.
So you draw your own S.R lines and only use the blue lines as a mark.Correct? I thought that the software automatically draws S/R lines on the chart.
I'm not always sure where to draw S/R lines.

Thanks
  • #45
  • Jul 10, 2008 8:00pm Jul 10, 2008 8:00pm
Here are a bunch of trades that were successful on the eur/jpy.
Attached Image (click to enlarge)
Click to Enlarge Name: ej1hour.gif Size: 16 KB
  • #46
  • Edited 8:36pm Jul 10, 2008 8:16pm | Edited 8:36pm
eur/usd: -30 pips
gbp/usd: -30 pips

Obviously I'm on a roll here!

New trade: usd/chf

short: 1.0270
s/l: 1.0300
t/p: 1.0225

*edit
forgot to mention a trade that I didn't have time to post at the time
nzd/usd
long: 0.7555
s/l: 0.7525
t/p: 0.7635
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  • #47
  • Jul 10, 2008 8:42pm Jul 10, 2008 8:42pm
Quoting forex4me
So you draw your own S.R lines and only use the blue lines as a mark.Correct? I thought that the software automatically draws S/R lines on the chart.
I'm not always sure where to draw S/R lines.

Thanks
Yes, I draw them manually. There might be some indicators that draw them automatically, I'm not sure though. You'd have to search. Drawing s/r lines is discretionary. What I try to do is draw the most obvious ones. The ones that are sticking out, areas that price bounces significantly off of.
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  • #48
  • Jul 11, 2008 6:10am Jul 11, 2008 6:10am
I was stopped out of my trade by 2 pips.
usd/chf: -30 pips

usd/cad
short: 1.0145
s/l: 1.0175
t/p: 1.0010

I've been waiting for two days for this trade to form and it finally did. It had broken a very strong support and after two days it came back to retest it. Hopefully it will act as resistance now.
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  • #49
  • Jul 11, 2008 7:10am Jul 11, 2008 7:10am
usd/cad: -30 pips

gbp/usd
limit: 1.9790
s/l: 1.9760
t/p: 1.9840
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  • #50
  • Jul 11, 2008 7:19am Jul 11, 2008 7:19am
nzd/usd: +80 pips
usd/chf (this is the same trade that stopped me out by 2 pips so I entered again at around the same price): +55 pips

eur/usd
limit: 1.5800
s/l: 1.5770
t/p: 1.5860
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  • #51
  • Jul 11, 2008 7:41am Jul 11, 2008 7:41am
usd/cad
short: 1.0145
s/l: 1.0175
t/p: 1.0095
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  • #52
  • Jul 11, 2008 11:31am Jul 11, 2008 11:31am
Quoting soltani
Sure Leo,

Here goes: My style of trading is based on support/resistance. So I usually wait for a resistance to form and after it breaks I enter on the pullback. Now sometimes that resistance turns into support and I can profit from it. Sometimes it just slices right through it.

Here I've posted two charts.
usd/chf 4 hour:
On the 4 hour chart, price was obviously stalling at around 1.0220, hence forming a resistance. Price later shot right through it and came back to it which also happened to be the 50 retracement (The probabilities increase when there is confluence). T/P should've been around 1.0345 because of the major support there. It's so major that the support would've even been seen on the daily.

usd/chf 1 hour:
On the same trade that I mentioned above, you can see another opportunity in the 1 hour. After price had broken 1.0220 and retraced back to it, it formed another resistance at around 1.0275. Naturally it retraced back to it and shot up again to the same support that I mentioned before, 1.0345.

So when I say "touches", it means that I put a limit on the resistance or support that has been broken. If I sound confusing, feel free to ask again. I'll try to explain it in a different way.


Thanks a lot for a detailed explanation. Based on your experience(since you exclusively trade on this strategy) how many times there is retracement once price pierce through resistance. I mean if price shot directly through resistance, does it have to come back ? Not always right ? Based on our experiece what are the chances that it will come back. I saw on interesting fact and this is purely my experience. When price shoot through a resistance during NY session it has very high probability to come back to the same resistance. It doesn't happen hundred percent of time but it does happen. But in this case I am talking about R1,R2 and R3 and I don't calculate resistance manually as you do.

This is very interesting discussion. I am enjoying it. Unfortunately it seems that you are in different time zone , otherwise we could have discussed more. What time zone are you in ? I am in EST. Talk to you soon
  • #53
  • Jul 12, 2008 2:23pm Jul 12, 2008 2:23pm
Quoting leo9
Thanks a lot for a detailed explanation. Based on your experience(since you exclusively trade on this strategy) how many times there is retracement once price pierce through resistance. I mean if price shot directly through resistance, does it have to come back ? Not always right ? Based on our experiece what are the chances that it will come back. I saw on interesting fact and this is purely my experience. When price shoot through a resistance during NY session it has very high probability to come back to the same resistance. It doesn't happen hundred percent of time but it does happen. But in this case I am talking about R1,R2 and R3 and I don't calculate resistance manually as you do.

This is very interesting discussion. I am enjoying it. Unfortunately it seems that you are in different time zone , otherwise we could have discussed more. What time zone are you in ? I am in EST. Talk to you soon
Hey Leo,

I've never really estimated how often it comes back, but I usually buy/sell on the first support/resistance around the current price. If price just shoots up and doesn't come back, it usually forms another resistance sooner or later and I buy as soon as it retraces (of course if my bias is long). I live in Tehran, so my time zone is GMT +3:30. Stay healthy.
  • #54
  • Jul 12, 2008 4:15pm Jul 12, 2008 4:15pm
usd/cad: +50 pips

Total this week: -126 pips
Total since June 27: +100 pips

*cancelled the pending orders for eur/usd and gbp/usd
  • #55
  • Jul 12, 2008 4:51pm Jul 12, 2008 4:51pm
1.9790 seems like a good place for cable to bounce back from. It will then probably hit 1.9845 and stall. If it breaks 1.9845, it'll head up to 1.9885. If it breaks 1.9885, we'll have a free ride to 1.9955.

buy limit: 1.9790
s/l: 1.9760
t/p: 1.9845
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  • #56
  • Jul 12, 2008 4:56pm Jul 12, 2008 4:56pm
Nice looking pinbar on the 4 hour for nzd/usd at a major resistance.
I'd like to enter on the pullback to .7590 after it breaks it.
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  • #57
  • Jul 14, 2008 5:23am Jul 14, 2008 5:23am
The eur/usd looks like it has entered a new territory after two months and half. The purple box is where I think the pair will range. I've set a buy limit at the bottom of the range, 1.5805.
s/l: 1.5775
t/p: 1.5860

It will probably go higher than my take profit, but I see a resistance at around that area just to play it safe.
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  • #58
  • Jul 14, 2008 5:25am Jul 14, 2008 5:25am
Cable is approaching a strong support at around 1.9800 after it had hit a strong resistance at 1.9960-80. My best guess is that it will go up to at least the same resistance after hitting this area. To play it safe, I'll set my first t/p at the nearest resistance and scalp my way up to the next one.

buy limit: 1.9795
s/l: 1.9765
t/p: 1.9835
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  • #59
  • Jul 14, 2008 6:17am Jul 14, 2008 6:17am
I'd love to see gbp/chf break out of this wedge to the downside and make a pullback right at a trendline and resistance.
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  • #60
  • Jul 14, 2008 5:56pm Jul 14, 2008 5:56pm
entered at pullback: 1.0063
s/l: 1.0093
t/p: 1.0025
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