Support & Resistance Trading

I have been trading for about 3 years now and have moved back and forth between fundamentals and technicals, trying to decide which suits my personality better. I have looked at systems that are based heavily on indicators, to news trading systems to taking longer term systems in a bid to not only remain profitable but generate enough of a profit to allow me to give up the day job and reach that common goal of living solely from my trading income.

What I have found is that there are a lot of systems out there that can make money in the long run, the problem is that most traders seem to over leverage their accounts and hence cannot sustain the ineveitable losses that every trader experiences. This shows me that there is a serious lack of basic understanding on what it takes to become consistently profitable. Your primary concern as a trader should be to protect your capital, if you are able to do this then the profits will follow.

In this journal I aim to share my experiences of what it has taken to get to a point of profitability. I will provide details on the trades I have taken as well as ones that I didn't (I think this is important too). I invite anyone who is interested to also add their comments on some of my posts and generally get involved :-)

I hope this becomes a positive journal where everybody has a chance to contribute, learn and even teach others. At the end of the day nobody is perfect right? so lets all try to help and learn from each other in a bid to makes those dreams a reality.

Hi People,

OK so before we get into next week and the beginning of the Journey I thought I would briefly explain my approach to trading.

I have very basic charts nothing on them. The only tools I use are horizontal support and resistance lines, fib levels and trendlines.

I look for easy to spot price action where you can clearly see price finding support or resistance on one of my levels and then I wait for a break. Once I get the break I look for confirmation and then I enter. I place my stops behind the previous swing point and my targets at possible levels of support or resistance.

I will try to add more as we go a long but I thought it best to start by providing a brief explanation on how I trade and then we can go into more depth as we get further into the thread.

Please feel free to ask any questions and lets look forward to a successful, vibrant future!

I too enjoy support and resistance however I do not agree that you should use a empty chart. One must be able to use all the available tools at your disposal to enter into a high probability trade.

The system I use is deadly accurate and stupendous. I am going to share some analysis that I have going into next week with you on the USD/CAD.

Based on my sound research this pair has SHORT written all over it. I have a hard profit level of over 500 pips for next week as soon as all my trade confirmations are met and my trade is triggered.

Enjoy the analysis. I will stop back by to provide more insight and help you along your way to trading riches.

Master Tater

We trade in a similar way with the same tools by the sounds of it (not sure if that's a good thing or not!), with the exception of confirmation. Don't you find that waiting for confirmation often gives you worse entries, larger stops, smaller targets, and missed trades? I'm not saying jump in recklessly, it's just that waiting for all the ducks to line up usually seems to end up costing a few pips at either end, and it doesn't increase probability enough to justify it.

I'm with you on risk management, preservation of trading capital to be able to trade another day regardless of what happens to a few trades.

Hi pipriderFX,

I too trade in a similar fashion to you, but i also trade failures to break, or "bounces" of s/r, im just curious what you would consider confirmation once your s/r has been broken? Do you wait for a retrace back to s/r and then enter or do you wait for a few candles to form in the direction you are looking at etc etc?