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Support & Resistance

  • #21
  • Jul 18, 2007 11:34am Jul 18, 2007 11:34am
I agree 100%, in fact zooming out is one of the most overlooked and underutilized aspects of trading that most new traders fail to recognize. When I first realized it's value I thought "how could I have not noticed that!"


Quoting Bemac
Zoom Out.
  • #22
  • Aug 20, 2007 6:09pm Aug 20, 2007 6:09pm
See this link and posts 5532 and 5533 for CadJpy resistant level

http://www.forexfactory.com/showthre...11#post1549311
  • #23
  • Aug 20, 2007 8:45pm Aug 20, 2007 8:45pm
This is how I see CADJPY 240min support / resistance. I look at more recent data being more important that further out:
Attached Image (click to enlarge)
Click to Enlarge Name: CADJPY240.jpg Size: 47 KB
  • #24
  • Jul 1, 2010 1:29pm Jul 1, 2010 1:29pm
Real Support and Resistence is pending BUY/SELL orders (and there value) at interbank level which retail traders cannot see and is why Fibs, Fractals and other technical indicators do not always work as you think they will.

Scoobs.
  • #25
  • Jul 13, 2010 1:44am Jul 13, 2010 1:44am
There is a ton of good information flowing in this thread for finding S/R!

One thing I would like to add which is realted to what scoob wrote.

The reason there are so many pending buy or sell orders sitting on at a price on a chart is because there are so many traders looking at the same thing.

Stated another way, when looking at a chart to determine areas of S/R don't look too hard. If you see a place where price turned so did thousands of other traders. Look for the obvious turning points, places where price was rejected or stalled. This is why you will see on charts a support area where a Pin Bar was formed. Stops were run down because there wee a bunch of pending sell orders there. But the buying power was much greater causing price to head back up forming the long wick and eventually the PB. J16 thread talks about this at nausium. But it's what's real

Cheers!
Nothing is impossible, with a willing mind!
  • #26
  • Jul 13, 2010 7:40am Jul 13, 2010 7:40am
Quoting Trader_V
There is a ton of good information flowing in this thread for finding S/R!

One thing I would like to add which is realted to what scoob wrote.

The reason there are so many pending buy or sell orders sitting on at a price on a chart is because there are so many traders looking at the same thing.

Stated another way, when looking at a chart to determine areas of S/R don't look too hard. If you see a place where price turned so did thousands of other traders. Look for the obvious turning points, places where price was rejected or stalled. This...
I stopped looking at it as Support and resistance. I now look it as Supply and Demand, just changing my vocabulary with that has brought a whole new dimension to my trading for the better.
Know when to hold em, Know when to fold em!
  • #27
  • Jul 13, 2010 8:37am Jul 13, 2010 8:37am
Sometimes that's all that is needed is a little tweak to make a world of change.

Good Luck to ya!

Quoting goods
I stopped looking at it as Support and resistance. I now look it as Supply and Demand, just changing my vocabulary with that has brought a whole new dimension to my trading for the better.
Nothing is impossible, with a willing mind!
  • #28
  • Jul 14, 2010 12:37am Jul 14, 2010 12:37am
Go read through James16.

It does not get any simpler.

1) Remove all indicators lines and other crap from your chart
2) Pick a TF atleast 1hour or above to start with
3) Zoom out
4) Draw Horizontal lines. If you don't know where to draw them ask a 10yr old. Should not take more than 5 minutes total.

Its the simplest thing in the world.
  • #29
  • Jul 14, 2010 3:57am Jul 14, 2010 3:57am
Hi everybody, this is my first post on FF, ive been having a good read as of late. Im fairly new to forex, just using a demo spread betting account atm. It seems a very useful site, a lot of very knowledgable traders on here. But like most forex forums Ive realised you have to be careful to cherry pick good advice, otherwise you will just end up overloaded with things you do not need to know.

Anyway, whilst you are on the topic of S/R Im sure some of you will use fib levels to deifne areas of support and resistance, what timeframes do you use them on. Do they work as well on small time frames, 5/10M, as well as larger ones, 4H/daily etc?

Also, this may be a little off topic, but can anybody recommend a good book on price action trading?
Whether you think that you can, or that you can't, you are usually right.
  • #30
  • Jul 15, 2010 6:29am Jul 15, 2010 6:29am
Quoting fxdanny4x
Go read through James16.

It does not get any simpler.

1) Remove all indicators lines and other crap from your chart
2) Pick a TF atleast 1hour or above to start with
3) Zoom out
4) Draw Horizontal lines. If you don't know where to draw them ask a 10yr old. Should not take more than 5 minutes total.

Its the simplest thing in the world.
James 16 thread will keep you busy ...

Also look at the nobrainer trades threat. Absolutely amazing
http://www.forexfactory.com/showthread.php?t=86429
Personally I think these setups define Price Action very clearly
Know when to hold em, Know when to fold em!
  • #31
  • Jul 15, 2010 6:36am Jul 15, 2010 6:36am
Quoting DTaylor
Hi everybody, this is my first post on FF, ive been having a good read as of late. Im fairly new to forex, just using a demo spread betting account atm. It seems a very useful site, a lot of very knowledgable traders on here. But like most forex forums Ive realised you have to be careful to cherry pick good advice, otherwise you will just end up overloaded with things you do not need to know.

Anyway, whilst you are on the topic of S/R Im sure some of you will use fib levels to deifne areas of support and resistance, what timeframes do you use...

Hi Dtaylor, welcome to the wacky world of Forex.

I will outline advice:

1. Do not look at the pairs thread when trading, they will only throw off the reasons why you want to trade a particular pair at a given time.

2. No better way to understand price action than to Google it. I recommend the following.
http://www.forexfactory.com/showthread.php?t=86429
The creator here is an amazing trader one of the bests, if you search deep enough in this thread for a particular link you will find a golden nugget, I suggest you follow it, it will lead you to another site!!!

3. Fibs are not a holy grail do not trade on them solely, Fibs are not used to enter trades, they are used for trade management, you must find solid ground for why you will enter a trade.

4. Fibs do work on all time frames, however based on the time frame you are looking at to reason for your trade you will need to stick to that time frame with your trade. meaning you trade a 5 min tf, dont expect to be in a trade more than 15 minutes or so, unless some un-natural force of nature in the market just continues to give you pips.

4. Price action is absolutely the best in trading, do not get used to indicators except for Candlesticks, Trendlines, and Psych numbers.
Check out http://www.babypips.com/school

Hope this helps some also do not read trading systems on here as they will deviate you away from your trading style. I like price action because it does not LAG.

Also do research on the COT report (commitment of traders), all pro's I know use this as a lagging indicator but very good. Please take note of the thread below to become an expert on the COT report.
http://www.forexfactory.com/showthread.php?t=216247
Shahab8b is a great wealth of knowledge.
Know when to hold em, Know when to fold em!
  • #32
  • Last Post: Jul 15, 2010 8:50am Jul 15, 2010 8:50am
Quoting goods
James 16 thread will keep you busy ...

Also look at the nobrainer trades threat. Absolutely amazing
http://www.forexfactory.com/showthread.php?t=86429
Personally I think these setups define Price Action very clearly
yeah J16 is pretty awesome.
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