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  • #3,521
  • Edited 8:20pm Jun 1, 2009 8:03pm | Edited 8:20pm
Well what have we here? This looks like something I should know - now where did I put Strat's Manual on PASR?




When you first look at the chart without zooming in, it almost looks like a Renko chart - so simple!
Attached Image (click to enlarge)
Click to Enlarge Name: eurcad daily.gif Size: 19 KB
15 YEARS OF PASR ON FOREX FACTORY!
  • #3,522
  • Jun 1, 2009 8:10pm Jun 1, 2009 8:10pm
Quoting Naws
We have some shooting stars and hammers developing on USD pairs, I won't be trading against the trend but maybe a small retrace will give us a chance to re-enter main trend if it goes that way. Unfortunately I didn't get a good chance to enter it early.
The US dollar index broke down a bear flag a couple of days ago but looks to have put in a hammer tonight. It might be a bond hammer. Correction, I am sure it is a bond hammer because I can't find a level for it.
Maybe Blackeagle has a comment on it or a level ...
  • #3,523
  • Jun 1, 2009 9:03pm Jun 1, 2009 9:03pm
Quoting strat
Well what have we here? This looks like something I should know - now where did I put Strat's Manual on PASR?




When you first look at the chart without zooming in, it almost looks like a Renko chart - so simple!
BUOB on support but it is against the trend I don't think I would trade that one, rather wait for more bearish PA if this bar causes a retrace
  • #3,524
  • Jun 1, 2009 9:10pm Jun 1, 2009 9:10pm
EURGBP & EURCAD beginning to play together?
Attached Image (click to enlarge)
Click to Enlarge Name: eurgbp & eurcad.gif Size: 19 KB
15 YEARS OF PASR ON FOREX FACTORY!
  • #3,525
  • Jun 1, 2009 10:51pm Jun 1, 2009 10:51pm
Quoting elitejets
The US dollar index ....
Maybe Blackeagle has a comment on it or a level ...
I have attached the recent chart. I find no reason, at the moment, to be bullish. Maybe a retracement to close the gap, but unless 81 is penetrated decisively, downtrend continues. We have a support, but minor one, at 79 level. Next support at 75.
Attached Image (click to enlarge)
Click to Enlarge Name: DOLLAR INDEX-Daily.jpg Size: 145 KB
  • #3,526
  • Jun 1, 2009 11:00pm Jun 1, 2009 11:00pm
Quoting Lotuselanman

I still have trouble trusting my assessment of the power of a SR line.
Lotus, you have too many SR lines on your chart. That is the reason you are having trouble to trust them, IMO. My advise is to clean your charts, start with monthly, and then go down to weekly. You should have major SR lines drawn before going down to daily. Use daily to fine tune only.
  • #3,527
  • Jun 2, 2009 1:43am Jun 2, 2009 1:43am
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting strat
Well what have we here? This looks like something I should know - now where did I put Strat's Manual on PASR?


When you first look at the chart without zooming in, it almost looks like a Renko chart - so simple!

Ecad chart, open of yesterdays candle was at support - 1.5403, bounced down, closed higher - retracement coming? maybe a retest of the former supporting TL, but i have a 100ema on my weekly tying in nicely with a S&R point at 1.5600

Attached Image (click to enlarge)
Click to Enlarge Name: ecad d1.gif Size: 19 KB
  • #3,528
  • Jun 2, 2009 3:47am Jun 2, 2009 3:47am
Quoting Blackeagle
Lotus, you have too many SR lines on your chart. That is the reason you are having trouble to trust them, IMO. My advise is to clean your charts, start with monthly, and then go down to weekly. You should have major SR lines drawn before going down to daily. Use daily to fine tune only.
Correct me if I'm wrong here, but does this mean you only really pay attention to monthly and weekly S/R, and expect price to break to these areas rather than paying to much attention to daily S/R? Basically you only pay attention to daily S/R if it tallies up nicely with monthly/weekly S/R?

Because this is something I've been observing recently. I lack the experience to say for definite, but it appears when entering on the daily time frame price action, its the weekly (and perhaps monthly) S/R that price makes a play to. It hovers round daily S/R lines (such as recent swing highs/lows, and in traffic type S/R) and can even retrace a little at these points, but ultimately if its broken a weekly S/R line, it wants to move to the next weekly S/R level, even if it has a few hiccups at daily S/R along the way?
  • #3,529
  • Jun 2, 2009 4:39am Jun 2, 2009 4:39am
Quoting pmn100
Correct me if I'm wrong here, but does this mean you only really pay attention to monthly and weekly S/R, ............

Because this is something I've been observing recently............
Hello pmn100,

After Strat's and Blackeagles helpful comments to my plethora of SR lines, I've stripped out all my lines and re-entered the Monthly and Weekly lines in different colours, so that when I check the Daily I can see which is which. This makes checking PA easier to assess at these different levels. Although it is early days with this approach for me, I would tend to agree with you about the price 'preferring' the W and M lines for significant action.

But as I say it is my initial impression only at the moment but something I will explore further. For me the different colour approach is helping at this stage.

Oh yes, one other thing: I find that Blackeagles advice some time ago to try drawing the SR lines using the line chart rather than the candle chart at first very helpful, and then switching back to candles. The line chart seems to make things clearer when it comes to drawing the lines. The candles, of course, then tell one so much more about PA than the line chart. Different strokes....????

Just my 'early days on The Path' two-penny worth.

Best etc,
  • #3,530
  • Jun 2, 2009 4:57am Jun 2, 2009 4:57am
Pls blackeagle,which broker provides the charts you post,thank you.


Quoting Blackeagle
Lotus, you have too many SR lines on your chart. That is the reason you are having trouble to trust them, IMO. My advise is to clean your charts, start with monthly, and then go down to weekly. You should have major SR lines drawn before going down to daily. Use daily to fine tune only.
D labour of a fool wearieth him cos he doesn't know how to enta d city
  • #3,531
  • Jun 2, 2009 5:28am Jun 2, 2009 5:28am
Quoting pmn100
Correct me if I'm wrong here, but does this mean you only really pay attention to monthly and weekly S/R, and expect price to break to these areas rather than paying to much attention to daily S/R? Basically you only pay attention to daily S/R if it tallies up nicely with monthly/weekly S/R?
If an SR is obvious on weekly and monthly, it is obvious on daily too, so we call them major SRs. Actually, it all depends on your trading style and look-back period you choose. If you are an agressive trader, then you can keep your look-back period short and draw SRs on daily chart only. In this case, the SRs may not have any meaning on weekly or monthly charts. But my advice is to look at the big picture always.

So, my answer is yes, I am paying attention to major SRs only except if the price is in uncharted territory. If so, then I am drawing SRs on daily only such as EURGBP chart after December 2008. Hope that helps.
  • #3,532
  • Jun 2, 2009 5:32am Jun 2, 2009 5:32am
Quoting lordgbengs
Pls blackeagle,which broker provides the charts you post,thank you.
It is a data vendor, not a broker and I pay annual fee for that.
  • #3,533
  • Jun 2, 2009 6:47am Jun 2, 2009 6:47am
Thanks for that,i appreciate

Quoting Blackeagle
It is a data vendor, not a broker and I pay annual fee for that.
D labour of a fool wearieth him cos he doesn't know how to enta d city
  • #3,534
  • Jun 2, 2009 7:49am Jun 2, 2009 7:49am
Quoting Blackeagle
If an SR is obvious on weekly and monthly, it is obvious on daily too, so we call them major SRs. Actually, it all depends on your trading style and look-back period you choose. If you are an agressive trader, then you can keep your look-back period short and draw SRs on daily chart only. In this case, the SRs may not have any meaning on weekly or monthly charts. But my advice is to look at the big picture always.

So, my answer is yes, I am paying attention to major SRs only except if the price is in uncharted territory. If so, then I am drawing...
Yes I get you. Thanks.
  • #3,535
  • Jun 2, 2009 9:54am Jun 2, 2009 9:54am
Just to add a little more to Blackeagle's excellent posts on S&R.

You have to decide what type of trader you are or want to become.

Do you want to trade from support to the next resistance picking off a lower amount of pips but with lower risk and with a higher $/pip value? This is what Jim of J16 does and many others who are basically "scalping" on the Worker time frame.
When you can do this consistently it is very rewarding especially when you ramp up the $/pips. Trading for 50 pips at $100/pip is a nice business.

If this is your style, then you need more S&R lines to show you where the nearest "problem area" will be.

If you want to be a swing trader and trade the swings, then you need less S&R lines which you can either use from Worker swings or Boss swings. This is not as simple as it sounds because price doesn't always follow past swings and starts putting in new swings at other areas of S&R.

If you want to be a trend trader and try to ride the trend from top to bottom, which is many, many steps further on The Path than where you are now, this will require even less S&R lines as you will use major trend swings from the Boss and Big Boss.

So, in addition to understanding S&R, you also have to know your "style" of trading and how you use them.

For example, when I do an "ATM" trade, I always add ALL the S&R lines from the Worker. I put these on my chart in a "feint" colour so that I really have to look at the screen to see them. Then, I look at the Worker swings and where these coincide with a "feint" line, I darken the line to make it stand out.

When I am in "trend" mode, I ignore most of the Worker "noise" and only add Worker swings, again in a "feint" colour. Then I add Boss S&R in a slightly darker colour and, again, as Blackeagle pointed out, where the Boss and Worker S&R coincide, I darken the line again. Then I add Big Boss S&R again in a different "feint" colour and, again, where these coincide with any other line, I darken them again.

We all have different ways of showing S&R on our charts and it just comes down to personal preference. However, in addition to understanding S&R, you must know your trading style and how to use them.

Hope this helps rather than confuses!
15 YEARS OF PASR ON FOREX FACTORY!
  • #3,536
  • Jun 2, 2009 10:16am Jun 2, 2009 10:16am
Quoting strat
Just to add a little more to Blackeagle's excellent posts on S&R.

You have to decide what type of trader you are or want to become.

Do you want to trade from support to the next resistance picking off a lower amount of pips but with lower risk and with a higher $/pip value? This is what Jim of J16 does and many others who are basically "scalping" on the Worker time frame.
When you can do this consistently it is very rewarding especially when you ramp up the $/pips. Trading for 50 pips at $100/pip is a nice business.

If this is your style,...
That's made it very clear for me. Thanks.

Scalping for 50pips @ $100/pip however sounds extremely scary. I can't see how there can be a sufficient stop loss in place on daily price action to be able to take that sort of risk? I suppose a lot of it comes down to entering on a retrace of a hammer/ss, and other price action, rather than the break of it. With knowledge and experience, it probably works. Without experience, a sure fire way to lose, right?
  • #3,537
  • Jun 2, 2009 10:55am Jun 2, 2009 10:55am
Quoting pmn100
That's made it very clear for me. Thanks.

Scalping for 50pips @ $100/pip however sounds extremely scary. I can't see how there can be a sufficient stop loss in place on daily price action to be able to take that sort of risk? I suppose a lot of it comes down to entering on a retrace of a hammer/ss, and other price action, rather than the break of it. With knowledge and experience, it probably works. Without experience, a sure fire way to lose, right?
By the time you are able to afford $100/pip, you will have so much confidence and belief in yourself and your system that you will be able to do this in your sleep, hanging upside down from the Golden Gate Bridge while whistling "Dixie".
15 YEARS OF PASR ON FOREX FACTORY!
  • #3,538
  • Edited 4:28pm Jun 2, 2009 4:10pm | Edited 4:28pm
Thanks Strat - great post on the SR - I'd never even thought of the different styles of trading and SR line that are applicable to that style - etc.

Brett Steenberger has an excellent website full of resources for the trading psychology types:

http://www.brettsteenbarger.com/articles.htm

In one of his books he recites the very same thing about certain traders being unable to adapt to a particular TF due to their psychological make up. There will be people who just can't trade the daily as it doesn't match their personality - the hyper, on the edge types, who thrash their cars everywhere and live life at 200 knots, who may be better on the 15m TF or below.

I guess he's just trying to say that we are all different - and thank god, otherwise there wouldn't be a market as prices would be stable as we'd all see fair value in any trade at any time; prices would stagnate possibly.

Every 'layer' of the markets needs its 'pond' from which to feed. The 5m feeds from the 15m and the 15m from the hrly, the hrly from the 4hr etc. Just know which pond you are in and who is trying to feed on you!

Ramble over - back to studying the daily TF where I know I belong!
Trade less and become more profitable!
  • #3,539
  • Jun 2, 2009 4:13pm Jun 2, 2009 4:13pm
Quoting Grimweasel
Just know which pond you are in and who is trying to feed on you!
Great comment GW
  • #3,540
  • Jun 2, 2009 4:39pm Jun 2, 2009 4:39pm
Hello Strat and All,

I am Ramon from Italy, I joined this thread hoping to recover my losses (in the future...only demo for now...hehehe).I just read the first 18 pages, still in the process of catching up all the posts before posting anything...
For the USDX charts you can try here:

http://www.forexltd.co.uk


r.


Quoting lordgbengs
Thanks for that,i appreciate
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