Support and Resistance Trading Simplified | Page 4 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Simplified original turtle trading system 44 replies

Simplified Chaos Trading 23 replies

Simplified Trailing Stop 0 replies

Simplified Version Of (Fast) Stochastic 2 replies

a software that can offer a simplified rate of any currency in your screen 0 replies

Attachments: Support and Resistance Trading Simplified
Exit Attachments

Support and Resistance Trading Simplified

  • #61
  • Mar 25, 2010 11:44am Mar 25, 2010 11:44am
Quoting Angel65
Bonjour Domino,

Very very interesting...........but in order to simplified things and because a chart example is by far better than words, could you give us a truly line chart example with entry/stoploss/trailinstop levels.
if you go through since page two weve been following the same trade and adjusting building into and adding stops. every break on that way down in an entry hold and new entry.. and after every break we have adjusted stop above the failed high by 1pip+spread.
Quote
If you don't mind as well...........

Thanks for your carefull attention,

Happy trading all,

Cheers

Angel

I will do somemore in the future as well but probably in a new thread start fresh.
  • #62
  • Mar 25, 2010 11:48am Mar 25, 2010 11:48am
here is how we stopped out of this trade..
Price is breaking higher over failed lows order flow stacked above highs has triggered and price will move higher we exit and wait.

EDIT: ALSO I do want other people to know I do not think that J16 style trading doesnt work.. I just believe that its not direct pure price action.
Attached Image (click to enlarge)
Click to Enlarge Name: pa12.JPG Size: 80 KB
  • #63
  • Mar 25, 2010 11:55am Mar 25, 2010 11:55am
I think I follow you....

When you refer to the S/R as 1A etc.. the letters are basically just a "grade" we give to the significance of the S/R line? I assume this would just come from experience? I know there are some S/R lines that are obviously more significant and will have major orders lined up "behind" them...such as EURUSD just breaking through 1.3450, then subsequently taking out options at 1.3400 and again at 1.3300. Is that what you are referring to?

I guess in a nutshell...we plot S/R lines on the chart...pick out the more significant ones that likely have a lot of orders stacked up behind them...then enter a trade on a breach of one of those areas. Correct?

Geez...I have access to L2 (order books) with my broker...I should probably learn how to use it.
  • #64
  • Mar 25, 2010 11:59am Mar 25, 2010 11:59am
so now we are looking to line ourselves up with the orderflow look at this picture
its ugly I know...

but know that as traders begin taking profit it will drive price up notice the two arrows below.. this is where orders will begin to pile to drive price new entries are stacking up massively at low and at again at the next level to power the price drop into the level below.. uptop there are no to light orders in the order flow there is no immediate levels to break with orders to power price movement and create imbalance so price will need to build an order base to protect the upmovement with breaks of the lows triggering larger movement than movement upward.
Attached Image (click to enlarge)
Click to Enlarge Name: pa13.JPG Size: 67 KB
  • #65
  • Mar 25, 2010 12:01pm Mar 25, 2010 12:01pm
Domino,

Many THANKS for your quick reply, it's very kind of you !!!

Happy and fun trading all

Cheers

Angel
  • #66
  • Edited 1:14pm Mar 25, 2010 12:54pm | Edited 1:14pm
break short and then broke short again..
stop above high

We are at Support zone 4A
Attached Image (click to enlarge)
Click to Enlarge Name: pa14.JPG Size: 71 KB
  • #67
  • Edited 1:12pm Mar 25, 2010 1:00pm | Edited 1:12pm
Quoting jdwbryan
I think I follow you....

When you refer to the S/R as 1A etc.. the letters are basically just a "grade" we give to the significance of the S/R line? I assume this would just come from experience? I know there are some S/R lines that are obviously more significant and will have major orders lined up "behind" them...such as EURUSD just breaking through 1.3450, then subsequently taking out options at 1.3400 and again at 1.3300. Is that what you are referring to?
we dont grade the S&R only realize it is S&R..and realize what type of s&r it is.. support zone 3C is support 3rd touch with 3-4 order clusters above it nothing more nothing less. the one you saw me take was a resistance zone 6D resistance zone 6 touches with 4-5 order clusters under it
Quote
I guess in a nutshell...we plot S/R lines on the chart...pick out the more significant ones that likely have a lot of orders stacked up behind them...then enter a trade on a breach of one of those areas. Correct?
draw many lines and something will be bound to respect.. its best jsut to know whats around you and take something that when the clusters trigger.
Quote
Geez...I have access to L2 (order books) with my broker...I should probably learn how to use it.
heh yes sir.. having an actual order book is awesome
  • #68
  • Mar 25, 2010 1:01pm Mar 25, 2010 1:01pm
Quoting Angel65
Domino,

Many THANKS for your quick reply, it's very kind of you !!!

Happy and fun trading all

Cheers

Angel
yourwelcome imma post some more on the fly trade as they happen not past stuff.
  • #69
  • Mar 25, 2010 1:29pm Mar 25, 2010 1:29pm
where is your stop?
at the high!!! gheeze guys now everyone knows lol..
Attached Image (click to enlarge)
Click to Enlarge Name: pa15.JPG Size: 73 KB
  • #70
  • Mar 25, 2010 2:37pm Mar 25, 2010 2:37pm
price is continuing to break and SZ4A is now RZ5H orders are piling at the highs as failing new highs emerge and new sell orders are triggered and piled at lows.
isnt it odd how someone can put stops out there and entries and they actually work for once? .. Price action.

Price must fali high and break low to trigger more sell orders and building triggers in order flow and adjust stop

1:2 R:R right now
Attached Image (click to enlarge)
Click to Enlarge Name: pa16.JPG Size: 74 KB
  • #71
  • Mar 25, 2010 3:12pm Mar 25, 2010 3:12pm
take a gander at how.. candles look at how the bars are effected by these zones of clustered orders and how they build.
Attached Image (click to enlarge)
Click to Enlarge Name: pa17.JPG Size: 81 KB
  • #72
  • Mar 25, 2010 3:17pm Mar 25, 2010 3:17pm
now look at the much shorter frame and look at the bars that crush into the order clusters

we are now building clusters of orders under these candles.. triggers and stops trailing stops and all sorts of nonsense to protect the flow of price right now.

look at the order cluster above the failed break that was in that giant yellow block i drew earlier... there was nothing there to power this break ....

do retail traders think pro's go oh there is a pin bar at S&R.. or do you think pro's say lets evaluate the order flow / order clustering and price action.. which way will trigger with the most power.. where will those orders take us.. will it cause a chain reaction into new areas or order clustering? or will the move be short lived..
Attached Image (click to enlarge)
Click to Enlarge Name: pa18.JPG Size: 84 KB
  • #73
  • Edited 4:04pm Mar 25, 2010 3:25pm | Edited 4:04pm
stopping out.. this is not to say pros will not get stopped out.. I get stopped out its life.. but its usually close to BE or ive minimized potential loss.. you never move a stop back only forward.. and never accumulate orders backwards only forwards.. we move with price or we dont move at all. we say ok price you are breaking low let me help you break low and trigger lower orders.. let me help the avalanche not try to stop it.. and never feel bad about stopping out.. and when your building into a trade its easy to take profit at 30% gains in your account especially when you risked only .5% but dont do it. its best to be taken out by a shift in the market rather than scared you wont be able to put out profits. this makes or breaks a trade last trade I could have said.. hey i wanna take profit at 100pips especially since I was up 15% or so on it.. but instead I was patient helpped price and I was rewarded with an extra 12% on top help price stay with price dont abandon it.

and dont worry when your selling and one down candle is followed by 12 up candles and cant get out of the range of the sell candle.. just because price is moving up against you doesnt mean your against the order flow

there is an old investment axiom performance is a byproduct of an investments duration in market
  • #74
  • Edited 4:04pm Mar 25, 2010 3:35pm | Edited 4:04pm
silly traders the order flow is short.

can anyone tell me where they stacked there orders?
Attached Image (click to enlarge)
Click to Enlarge Name: pa19.JPG Size: 84 KB
  • #75
  • Mar 25, 2010 6:55pm Mar 25, 2010 6:55pm
stop out in profit if ur trading the hourly at 1:1.5 RR not a great trade but profitable.

im trading the 3 hour wave so hopefully we keep going.
Attached Image (click to enlarge)
Click to Enlarge Name: pa20.JPG Size: 72 KB
  • #76
  • Mar 26, 2010 8:28am Mar 26, 2010 8:28am
Quoting domino
silly traders the order flow is short.

can anyone tell me where they stacked there orders?
looks like they got some orders placed to buy after the pinbar
  • #77
  • Mar 26, 2010 11:16am Mar 26, 2010 11:16am
Quoting perfectgrim
looks like they got some orders placed to buy after the pinbar
now im not sure what pin bar you are refering to i think there is a star on the daily.. and nothing below that unless u are talking about the yellow horizontal line... but what I see is a reverse in the order flow at the yellow area where if you refer back is a stop out on the one hour as I said when it happened. then it looks like basic demand increased probably with take profits and started to build buy sided order flow..to bad I was AFK to catch it but so is life.

anyways the yellow area the order flow changed on the smaller TF lead to the building and triggering of old orders driving price up nothing more nothing less.. powered also by profit taking..

id like to see what you mean by this pin bar tho

here is reference of orderflow calling the reverse and short stopout
http://www.forexfactory.com/showpost...9&postcount=75
Attached Image (click to enlarge)
Click to Enlarge Name: pa21.JPG Size: 76 KB
  • #78
  • Mar 26, 2010 11:24am Mar 26, 2010 11:24am
Quoting perfectgrim
looks like they got some orders placed to buy after the pinbar
ya know what I see what you mean.. this short off the pinbar gotcha

but now lemme ask you was it the pin bar that triggered the selling... like it looks on the bar chart.. or
was it the break out and crush of the low that attracted and caused the order clusters to trigger causing more selling?

reference back to this post a bit http://www.forexfactory.com/showpost...5&postcount=16
and tell me if its not both.. maybe smaller ordercluster selling on lower time frames and price action causing the bar.. then a break in those orders causing a cascade into larger order clusters below.. if the central market microstruture allows the broker to adjust price to trigger bulk orders which heavy blocks act as attractors for brokers than this would be the case right?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: pa22.JPG Size: 74 KB
Click to Enlarge Name: pa23.JPG Size: 69 KB
  • #79
  • Mar 26, 2010 11:24am Mar 26, 2010 11:24am
Bonjour Domino,

Sorry with my stupid questions but :

1) What do you exactly mean by "failed lower high" ?

2) Regarding a breakout using MT4 line chart, should we wait that price close to take the breakout ?

3) Where do I put my entry level when there is more than 10/20 pips between my close price and the high/low of the current bar ?

Thanks for your attention,

Cheers

Angel
  • #80
  • Mar 26, 2010 11:41am Mar 26, 2010 11:41am
Quoting Angel65
Bonjour Domino,

Sorry with my stupid questions but :

1) What do you exactly mean by "failed lower high" ?
there are no stupid questions .. failed lower high is a wave definition of price not being able to trade above the last high I will attach a chart in a bit. all these yellow lines are failed lower highs.. because the fail to trade or break the last high
Quote
2) Regarding a breakout using MT4 line chart, should we wait that price close to take the breakout ?
take the break as it occurs as price breaks all the orders are triggered if you do not want to get in after orderclusters begin to trigger because the movement can be quite fast and you will get a bad average trade you can also draw these by hand and attach them to extremes on wicks if you wish .. but maybe what your worried about is taking a trade where the break doesnt stick.. and close as a break.. but price must create a high then break for the trade to occur and completely switch direction which isnt a small thing so no worries.
Quote
3) Where do I put my entry level when there is more than 10/20 pips between my close price and the high/low of the current bar ?
I do not understand this question but I will speculate what you mean is where do you put your entry limit order if your taking the close of the breakout bar? well it is worse if you take the breakout bar because your getting in after the order clusters are triggered youll get a bad price and will suffer a larger risk you wanna take the break limit is at the break you align with the order clusters to help price move. stop is at the high also to help price move.
Quote
Thanks for your attention,

Cheers

Angel
Attached Image (click to enlarge)
Click to Enlarge Name: pa24.JPG Size: 77 KB
0 traders viewing now