Naked S/R intent trading

Is your fourth lower high correct?

Thanks

You are right and I am wrong ..
Here it is corrected.
Thanks!!!

The problem with any and all of these charts is that none of them is drawn in real time, and although they might look wonderful in hindsight, and look to tell the entire story and how easy it is, that is mostly an illusion because in real time you would draw lines which failed, and you you wouldn't know in real time if something is a higher low, because it may just drop in the next minute and actually be a lower low.

theWasp, if you really want to teach something useful, and I hope you do want to do that. Then you should show what you would draw and how you would think about it in a real time way. Bar by bar is excessive, but you can handle several bars at once, keep all future ones off chart, and teach something, and how you would take advantage of it.

For example in the The Experts Zone: GBPJPY thread you have a chart in post #293, and you have your support and resistance lines which is fine, but there are many questions on what you have drawn. You have these orange coloured sloping lines when price really breaks through. Perhaps to signify that price is trending down. But when are these drawn? How can you take advantage of this. Also when are you expecting a Sup/Res line to hold and when not, and why? Of course I can draw Sup/Res lines myself using daily and hourly or whatever, and at the end of the day, price has always reacted to some of these levels and you would think I knew exactly what was occurring. But the problem is that in real time sometimes they fail, sometimes they hold, sometimes they are good places to add to a move on pullback and sometimes not. Sometimes price flies through it a good 20 points, then reverses and then actually the sup/res holds (you can see examples on the chart in that post).

I am hoping you will answer some of these questions.

Your first line addressed all lines contributors. Mine were in real time (1' demo). The blue one, the red one's partner (not shown), and parallels to the white one (also not shown) worked. Best of luck in your lines studies.

Actually, all my lines are drawn like that. And yes I executed profitable trades from them. The easiest being long 141.50 after Gj tanked a couple of hundred points. If you really want you could search potential setups at T2W for the posting.

Even In Hindsight, you could trade the daily bars after they have bounced - most producing wonderful cliché candle patterns.

The orange lines are to signify weakness, they are nothing technical.

I'm not sure you even need lines.

Watching what's happening behind the scenes gives [generally more than] an idea...

What about the bulge on September + October?

By the way, IMO that chart is retarded. I'm pretty sure it's a commonly known fact that volume of indices dried up during the bang and afterwards (still recovering), I'm pretty sure this applies to forex too no?

hehe, finally, someone said it.


anyway, thewasp, there are different strategies for different traders...i know traders who use indicators and make money and others using the same indicators and loosing money...as i see it, it's all about experience...and you seem to have it.

however, concluding that volume is rubbish without knowing how to use it, is a pretty bold statement (haven't read the whole thread so i apologize if you don't consider volume rubbish anymore). Not that the volume is the only right way to go but it has opened my eyes of how to read price. Before i didn't notice the price the way i do now.

Also, I don't consider indicators to be bad or newbie-like trading, looking for an easy way out (i don't use indicators myself btw) although it is mainy referred as such and, yes, with a reason.

It is hard to learn how to use indicators because it simply confuses a trader. What's more, when you have indicators you forget the bigger picture. You forget key levels, you forget price action etc.

aahh, but what do i know...anyway, keep up the good work...when will you reveal what you see in the GBPJPY daily chart (the thing that is screaming in our face as an opportunity of a lifetime)?

channel confluencing with resistance ?

i would especially like to know how you read between the lines...do you wait for somekind of a break so the heard can buy while you're gonna fade it ?

take care,

lumesh

The volume was somewhat higher (than average) there for sure... but there were no HLs (very minor ones a couple of days apart) or even a single HH made.

February showed HH and HLs in [significantly] increased volume.


Not heard that about indices. There doesn't seem to be anything out of the ordinary there.

ha-pattern I didn't mean your chart, since that didn't really tell much of a story.

KillPhil08, you say you draw lines like that and several fo them were tradable and that is true. But I'll attach a chart which in real time you could/would draw these same lines and yet each of the ones I draw failed poorly. So why aren't any of these lines on your chart?

Not trying to be an ass just trying to learn. And if I don't ask why these lines are not on your chart, I can't learn.

HTH.

Yes these are exactly the kind of things I think are worth knowing. I still see many failures for every one that worked, and given the comments in your last chart, I looked to see if this is consistent on your previous chart. Keep the education coming please

Aggressively adding my sterling shorts atm, so my response is probably quite sloppy.

Thanks for the response. Do you have any rule about a support line to decide when it is no longer worth using. i.e. I would guess that if it failed as support, and then failed as resistance, then it had been traded through too much as you mentioned.

Perhaps we can get into intraday 1 hour charts after Wasp has returned, because there must also be plenty of opportunities there.

I find this;

The higher the TF more people will see it the more reactive it can get.
The most recent TL's or S/R are better than older ones.

Everything with me is discretionary so it's very hard to follow what one does, similarily with others too.

Looking forward to what wasp has to say, but he hasn't been around apart from on t2w.

I'm up big time on that sterling .

Hey! What's so awful about babypips.com anyway??

I have decided to concentrate my efforts on my own trading and will not be posting on any forums in the future. My apologies for those generally interested in my views and I wish you all the best with your trading.

Good luck with your new project Chris. I think we have lost an asset. Your simple message and brash style will be missed by many who should hear it in my opinion.

Apology accepted, as I am still interested

I second that.