Let me answer questions on SR on this one post.
By Weekly SR at 1.068 I mean the SR that is drawn through CLOSES, usually I do it using the line chart because it is easier. This is what I understood reading Strat's thread that SR through closes, especially on larger timeframes like weekly and monthly, are very good SR lines. And until now (with my limited experience!) they proved to be very good SR lines.
On Daily though I also use SR zones ala James16, but am more and more inclined to use SR lines through closes on Daily too.
Ok with the risk of being sent back to The Beginning of The Path Of Learning, I can't find those resistance levels on my Weekly feed (am looking at CLOSES). May I ask what are you looking for on the Weekly chart?
I could get into a very long dissertation on the advantages of the CLOSE over anything else but at the risk of boring the pants off you all, I’d better not!
Over the last couple of months I have been exchanging correspondence and talking with the retired Chief Trader of 20+ years of an International Bank specializing in trading forex over my DSRI and my demand and supply methodology. He had a similar system and thought I had bought it from someone he sold it to! Little did he know I’m the son of a Scot born and bred in Yorkshire and we don't even part with the smell off our own shit let alone money out of our wallets!
Anyway, he proceeded to tell me that the extremes of candles/bars were more important than closes. However, other than it was the total range of the candle/bar, he could not give me any other reasons why the extremes were more important. His system uses the extremes of candles/bars he told me and he was a Chief Trader at a very large International Bank and I’m just a ……………………………………………………………..……………………....nobody!
Now, I had already proven for myself (and I don’t care what anyone else does or thinks) the value, to me, of the CLOSE for determining SR. I also use the OPEN of a down bar but more often than not, they are the same PRICE. I experimented with many mathematical formulae for SR levels including those readily available in MT4 but I kept coming back to VISUAL PRICE. Long story short, I spent hours, days, weeks, months looking at PRICE and seeing and proving that the CLOSE was far more important than any other level. As a result, the majority of my SR levels are taken from the LINE CHART of CLOSES.
There are exceptions when I can just see with my Mark I eyeball, consolidation and congestion and I know, even though there may not be a CLOSE in there, that it will cause some sort of “wobble” for future PRICES.
Accepting that the CLOSE is the most important PRICE, I can “tune” my charts to any type and style of trading. I can identify and trade daily scalps all the way through to quarterly swings and beyond (if I can stay interested!).
While developing my DSRI and Demand and Supply methodology, the question of which PRICE to use reared its ugly head again. Starting with an open mind and blank sheet of paper, I researched every PRICE level on DSRI over thousands of charts and many hours, days, weeks and months. Just doing this opened my mind even more to the power of DSRI and demand and supply.
At the end of my studies, I not only proved beyond the proverbial shadow of doubt that the CLOSE was the most powerful and valuable PRICE (along with the open of a down bar) on a candle/bar, but also that DSRI Demand and Supply was like “insider information” on the buyers and sellers.
So, for me, there is no discussion. CLOSE is the MOST POWERFUL and VALUABLE level on a candle/bar. Including also, the open on a down bar.
For those doubting this, go back and look over some of the charts I posted, particularly those with my DSRI on or better still, do the exercise for yourself. For any Negative Nellies out there who want to prove me wrong – save your breath, I don’t care – the CLOSE knows the truth.
Now, accepting the CLOSE, we can put on any number of SR lines to suit our trading style. We can identify SR levels for daily scalps, 3 day trades, minor swings, major swings, long term trends or whatever.
The point to remember is that we will all have different price levels for these due to different data and our determination of which level to use. As I mentioned previously, there are different ways to identify these levels – swing highs and lows, equal bounces, extremes etc. You each have to determine what works best for you with your data.
With regard to “zones” that is not my style – I prefer to “fine tune” and find the SR levels within such “zones” which is the answer to soso’s question.
I’m not sure this answers the questions as I got carried away again, sorry.
By Weekly SR at 1.068 I mean the SR that is drawn through CLOSES, usually I do it using the line chart because it is easier. This is what I understood reading Strat's thread that SR through closes, especially on larger timeframes like weekly and monthly, are very good SR lines. And until now (with my limited experience!) they proved to be very good SR lines.
On Daily though I also use SR zones ala James16, but am more and more inclined to use SR lines through closes on Daily too.
Ok with the risk of being sent back to The Beginning of The Path Of Learning, I can't find those resistance levels on my Weekly feed (am looking at CLOSES). May I ask what are you looking for on the Weekly chart?
I could get into a very long dissertation on the advantages of the CLOSE over anything else but at the risk of boring the pants off you all, I’d better not!
Over the last couple of months I have been exchanging correspondence and talking with the retired Chief Trader of 20+ years of an International Bank specializing in trading forex over my DSRI and my demand and supply methodology. He had a similar system and thought I had bought it from someone he sold it to! Little did he know I’m the son of a Scot born and bred in Yorkshire and we don't even part with the smell off our own shit let alone money out of our wallets!
Anyway, he proceeded to tell me that the extremes of candles/bars were more important than closes. However, other than it was the total range of the candle/bar, he could not give me any other reasons why the extremes were more important. His system uses the extremes of candles/bars he told me and he was a Chief Trader at a very large International Bank and I’m just a ……………………………………………………………..……………………....nobody!
Now, I had already proven for myself (and I don’t care what anyone else does or thinks) the value, to me, of the CLOSE for determining SR. I also use the OPEN of a down bar but more often than not, they are the same PRICE. I experimented with many mathematical formulae for SR levels including those readily available in MT4 but I kept coming back to VISUAL PRICE. Long story short, I spent hours, days, weeks, months looking at PRICE and seeing and proving that the CLOSE was far more important than any other level. As a result, the majority of my SR levels are taken from the LINE CHART of CLOSES.
There are exceptions when I can just see with my Mark I eyeball, consolidation and congestion and I know, even though there may not be a CLOSE in there, that it will cause some sort of “wobble” for future PRICES.
Accepting that the CLOSE is the most important PRICE, I can “tune” my charts to any type and style of trading. I can identify and trade daily scalps all the way through to quarterly swings and beyond (if I can stay interested!).
While developing my DSRI and Demand and Supply methodology, the question of which PRICE to use reared its ugly head again. Starting with an open mind and blank sheet of paper, I researched every PRICE level on DSRI over thousands of charts and many hours, days, weeks and months. Just doing this opened my mind even more to the power of DSRI and demand and supply.
At the end of my studies, I not only proved beyond the proverbial shadow of doubt that the CLOSE was the most powerful and valuable PRICE (along with the open of a down bar) on a candle/bar, but also that DSRI Demand and Supply was like “insider information” on the buyers and sellers.
So, for me, there is no discussion. CLOSE is the MOST POWERFUL and VALUABLE level on a candle/bar. Including also, the open on a down bar.
For those doubting this, go back and look over some of the charts I posted, particularly those with my DSRI on or better still, do the exercise for yourself. For any Negative Nellies out there who want to prove me wrong – save your breath, I don’t care – the CLOSE knows the truth.
Now, accepting the CLOSE, we can put on any number of SR lines to suit our trading style. We can identify SR levels for daily scalps, 3 day trades, minor swings, major swings, long term trends or whatever.
The point to remember is that we will all have different price levels for these due to different data and our determination of which level to use. As I mentioned previously, there are different ways to identify these levels – swing highs and lows, equal bounces, extremes etc. You each have to determine what works best for you with your data.
With regard to “zones” that is not my style – I prefer to “fine tune” and find the SR levels within such “zones” which is the answer to soso’s question.
I’m not sure this answers the questions as I got carried away again, sorry.
15 YEARS OF PASR ON FOREX FACTORY!
(on higher timeframe of course).
