Support and Resistance Trading Simplified

gr8 work domino as your thread and inputs have broaden my view about PA, SL/RL and candlesticks. i am not that good at line charts. if you may, pls. do share some trades in candlesticks. btw i am considering myself a newbie thou i have been following up fx for coming 3 yr (part time basis).

run over on 15M exit on 30M proccing
odds are flow will continue but i have to leave

This is fantastic stuff Domino, thanks. Please keep it coming when you get a chance. I can't believe I've been missing the truth of the market all these years.

sure Ill start doing them in candlesticks

not much of a truth there is many ways to observe and trade the market this is just the way I do it.

short order flow eurusd today price is breaking out lower
orderflow is building and triggering against larger selling clusters

large impulse bars mean good resistance they also are a good indicator of orderflow

1:6 R:R we hit minor resistance and I need to not be in the market today.. so im out here

I believe and dont yell at me here but I believe the price action verbage for the entrance here is a slingshot entrance.. because price drops reverses and close become open high and the bust of the open and close triggers the order clusters not the wick lows.. If its spread out and more than 5 bars the verbage is death roll break..

30 M chart emerging order flow.
you guys starting to see what I see?
3H chart

15M chart

the OF is?

building the OF
6 bars to counter 1 selloff bar?

Thanks Domino. Heads up on all the good info.


Interpreting selloffs (stops), and buyins, around congregated S/R lines

in addition to the traditional 'Bounces and Breakouts' is an interesting

concept. Hard to wrap yourself around it though, I must admit.


Any books to recommend to extend this concept?

Best Regards, AF

generally to learn this you needa pay to learn it.. not books that ive seen goes over it and ive read alot of trading books. people have been doing this since the 30's its not new just not discussed much or you can learn it by reading a ton on market microstructure and watch price for 3-4 years

for market microstructure id go to the CBOT website.

Today this short has been brought you by a RZ5E swapped from support

orderflow changing and priming buyside.. so I guess well be done till london or tomorrow.

Thanks for today's lesson Domino. I think it's beginning to sink in.

Hope you don't mind a couple of questions please....

Q1.

Do big players defend fractals / order clusters to keep order flow in their favour?

I was watching EU today and had plotted all the expected order clusters from D1 down to M5. Price had fallen heavily, taking out almost all of the nearby order clusters on the way down. It then bounced off the 1.3450 and started heading back up (to feed on the clusters that had developed on the ride down I thought). When price failed to take out the last 15M high it went sideways for a bit and in the process created what I thought would be a nice set of buy order clusters just above the current action. Now, at this point we had a nice closely grouped set of buy orders just above and very few sell orders below which were much further away (due to the last downward sweep).

I fully expected price to soak up the liquidity that was most accessible (just above current price) and was quite surprised when instead price turned and fell quite a distance to get to the orders below.

Have you any idea why price behaved like this? I thought the market is tuned to take what it can easily reach first. I realize that order flow was down at this point and triggering some of those stops would have required swimming against the tide but those orders were only a few pips away. Could big money have been protecting these levels?

Q2.

If we're in an uptrend and 4 higher lows have been put in, my understanding is that the last low will have the most orders behind it due to the trailing of stops behind the new lows as price rises. The breaking of this most recent low should result in the largest surge. Is that correct? Will the breaking of the previous lows have much effect at all since surely the orders that were behind them were moved as price continued to rise?


Thanks. I really love this stuff.

Not sure if I'm seeing the right thing Domino. I see a rapid fall on the 30M chart with no pull backs...meaning no buy side order flow build up. This will act as a barrier to a potential retrace as there are no order clusters to fuel a move back up.

I see an inside bar which may have orders above it - does that count?

just find a cluter of orders that will push price

The order flow is still down. If the high 3 bars back is taken out then the order flow becomes neutral and we may exit the trade.

If price was to:

break the last 15M lower high
pull back to produce a higher low
continue upwards to break the new high

Only then would order flow would be reversed to the upside.

Is my understanding correct Domino?

Not sure what you're looking for here Domino. Is this shaping up for one of those "death roll breaks"?