Support/Resistance trading questions | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

support and resistance questions 5 replies

soltani's support/resistance trading 151 replies

Only Support and Resistance Trading 0 replies

Get Pivot-Support-Resistance Points Every Trading Day 20 replies

is trading Support and Resistance considered mechanical? 2 replies

Attachments: Support/Resistance trading questions
Exit Attachments

Support/Resistance trading questions

  • #1
  • First Post: Sep 27, 2010 10:24am Sep 27, 2010 10:24am
Hey I have a few questions. I've been reading several different things about support and resistance.

I want to trade without indicators and support / resistance with reversal candlesticks. Lots of people say you have to loook at 3 time frames. If you're trading the daily you need to look at the weekly, the 4 hour and the daily. A lot of other great traders say only look at the time frame you're trading because if you look at others your're getting a different view and that could cloud your judgment and just confuse you.

So.. which should I be doing? If you agree on multi-time frames what am I using the other 2 time frames for? Do I trade the reversal candlesticks off my main time frame or wait for them to form on the time frame above? Any comments would be appreciated!!!

Thanks for your time,
joe
  • #2
  • Sep 27, 2010 11:04am Sep 27, 2010 11:04am
Quoting beehivesjoe
Hey I have a few questions. I've been reading several different things about support and resistance....
Sir,
If you are trading daily, then I assume you are a Long Term Trader. You should look at weekly and monthly to make double sure that your trade is in the Right Direction. For that you just look at RSI 9 !!Above or below 30 and 70.
Bomi
If you look at hr 4 or hr 1 then you will get confused. just focus on your trading plan which is Long Term for which you should be ready with lots of cash in balance. Dont overtrade ir. For one gbp/usd atleast keep 500 dollars etc.
  • #3
  • Sep 27, 2010 11:10am Sep 27, 2010 11:10am
Quoting behman8850
Sir,
If you are trading daily, then I assume you are a Long Term Trader. You should look at weekly and monthly to make double sure that your trade is in the Right Direction. For that you just look at RSI 9 !!Above or below 30 and 70.
Bomi
If you look at hr 4 or hr 1 then you will get confused. just focus on your trading plan which is Long Term for which you should be ready with lots of cash in balance. Dont overtrade ir. For one gbp/usd atleast keep 500 dollars etc.

I was using 1 day as an example.. I am saying in general! I'm just talking about multi-time frames right now or not. Maybe 5 minute main time frame then using 30 as long term and the 1 minute.. it could be any time frame. I was just using the dialy as an example sorry!
  • #4
  • Sep 27, 2010 12:25pm Sep 27, 2010 12:25pm
Quote
Hey I have a few questions. I've been reading several different things about support and resistance.

I want to trade without indicators and support / resistance with reversal candlesticks. Lot...
I don't understand... you want use S&R or not?
  • #5
  • Sep 27, 2010 12:56pm Sep 27, 2010 12:56pm
I say stick to the 1TF only personally, you'll just get all confused reading bogus signals.

You might want the next tf slower aswell, just to give you more history but I wouldn't trade of it as such.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #6
  • Sep 27, 2010 1:41pm Sep 27, 2010 1:41pm
I would say that before You are gonna serch for the tf you have to now what you gonna call S&R...because many people use diferent tools to find S&R
  • #7
  • Sep 27, 2010 3:13pm Sep 27, 2010 3:13pm
Identify the levels you see as important.
Trade in a discretionary fascion, simple candlesticks in fast TF's not that important, think about what the "smart" money will possibly do to shake out the intermediate traders at these levels, will the price reverse short of the level, on the level, or sweep past it by a few pips? (that is where fast TF's help)
Once in the trade remember price will very likely come back and re-test that same level.
All of the above is just IMHO .
Biggest joker
  • #8
  • Sep 27, 2010 6:47pm Sep 27, 2010 6:47pm
When there is high volatility in market then M1 is important. When market is quiet then M1 is a chaos. The bigger time frame the more accurate is the market.
  • #9
  • Sep 28, 2010 4:07am Sep 28, 2010 4:07am
Quoting JeffC
When there is high volatility in market then M1 is important. When market is quiet then M1 is a chaos. The bigger time frame the more accurate is the market.
In general, don't think this is true. Larger TFs only give the illusion of better accuracy because there are usually less signals and the feedback loop is stretched out. Also, many fail to properly adjust SL and TP levels for the shorter TFs, which skews their perception. Statically, both TFs probably would give you the same w/l ratio all else being equal.
  • #10
  • Sep 28, 2010 4:39am Sep 28, 2010 4:39am
Quoting Slack
In general, don't think this is true. Larger TFs only give the illusion of better accuracy because there are usually less signals and the feedback loop is stretched out. Also, many fail to properly adjust SL and TP levels for the shorter TFs, which skews their perception. Statically, both TFs probably would give you the same w/l ratio all else being equal.

Someone applying logic on FF I never thought I'd see the day.

Larger TF's you sit there watching the market go up and down, your +50pips for abit then down to -50, then back to +50 then SL hit at -100 or maybe tp at +100 pretty much evenly split between the 2. This isn't really trading it's gambling and hoping.

Smaller TF's allow you to take advantage of short term moves, those 50pip swings you see while holding your H4 trade yeah ?? You can get them, using a 10SL and 10x's the risk / profit potential because of this.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #11
  • Sep 28, 2010 10:04am Sep 28, 2010 10:04am
Quoting Turveyd
Someone applying logic on FF I never thought I'd see the day.
A brief moment of lucidity... which reminds me, pick up some Tequila next time at the store.

Finally looks like the market has awaken from its deep funk... $$ is flowing again.
  • #12
  • Sep 28, 2010 11:00am Sep 28, 2010 11:00am
Quoting Slack
In general, don't think this is true. Larger TFs only give the illusion of better accuracy because there are usually less signals and the feedback loop is stretched out.
Yup, another way of saying the same thing: Those nice clean 4 hr candles appear a lot easier to read, but... everything that happened on a one minute chart (for 240 candles) chart also happened inside that 4 hr candle. There may have been a one hundred pip (or more) retrace and return inside of a large 4 hour candle that doesn't show up.

That's partly why newbs are so attracted to news trading. Those long clean candles (on almost any timeframe) look so eeeaaasy. How could you miss? In reality the movement inside those candles shakes most people out.
  • #13
  • Sep 28, 2010 11:09am Sep 28, 2010 11:09am
Quoting billflet
Yup, another way of saying the same thing: Those nice clean 4 hr candles appear a lot easier to read, but... everything that happened on a one minute chart (for 240 candles) chart also happened inside that 4 hr candle. There may have been a one hundred pip (or more) retrace and return inside of a large 4 hour candle that doesn't show up.

That's partly why newbs are so attracted to news trading. Those long clean candles (on almost any timeframe) look so eeeaaasy. How could you miss? In reality the movement inside those candles shakes most people...
I hate those freakishly long candles. The worst is when those pop up on a 1 min TF; you never know if the train isn't coming back for awhile or you're going to have an immediate pullback. I've learned to just sit them out.
  • #14
  • Sep 28, 2010 11:24am Sep 28, 2010 11:24am
  •  Czech
  • | Joined Feb 2010 | Status: You Don't Know What You Don't Know | 111 Posts
Quoting Slack
In general, don't think this is true. Larger TFs only give the illusion of better accuracy because there are usually less signals and the feedback loop is stretched out. Also, many fail to properly adjust SL and TP levels for the shorter TFs, which skews their perception. Statically, both TFs probably would give you the same w/l ratio all else being equal.
A long time frame compared to a short time frame presents different opportunities. Search for posts by Danielfppps. He posted a study (which is more evidence then you'll get from any other posters here) that concluded the FX market was weak-form efficient in the short term. What this means is that technical analysis offers no (statistically significant) advantage in short-term FX trading. The reason for that is because the short-term is full of noise. You could have every indication the market is going one way until "unforeseen event X" starts happening and price takes to the opposite direction. This may happen hundreds of times a day. In the long run this is not the case.

Of course, if your trades are random in any time frame, the less trades you make the slower your account will vanish.
  • #15
  • Oct 4, 2010 5:35am Oct 4, 2010 5:35am
Quoting Czech
A long time frame compared to a short time frame presents different opportunities. Search for posts by Danielfppps. He posted a study (which is more evidence then you'll get from any other posters here) that concluded the FX market was weak-form efficient in the short term. What this means is that technical analysis offers no (statistically significant) advantage in short-term FX trading. The reason for that is because the short-term is full of noise. You could have every indication the market is going one way until "unforeseen event X" starts...
I totally disagree on all counts...

... but yeah, stick to bigger and longer TF, while I just quietly stick with my 1M and tick TF

Slack and Turveyd, you guys should also stick with longer TF because Danielfppps did some research about bigger TF. OK?
  • #16
  • Oct 4, 2010 10:00pm Oct 4, 2010 10:00pm
Joe,

It depends the type of trader your are.

Are you a position trader?...longer term, daily, weekly, monthly

Day trader?...do not hold longer than day, daily, 4hr, 1hr

Scalper?...few min to an hour, 4hr,1hr, 15 and 5 min

Hope this helps,

-Mike
  • #17
  • Oct 4, 2010 10:07pm Oct 4, 2010 10:07pm
Quoting beehivesjoe
Hey I have a few questions. I've been reading several different things about support and resistance.

I want to trade without indicators and support / resistance with reversal candlesticks.

... Do I trade the reversal candlesticks off my main time frame or wait for them to form on the time frame above? Any comments would be appreciated!!!

Thanks for your time,
joe
I have some articles that might give you more information that's
relevant to your query.
Attached File(s)
File Type: pdf YTE - Unlocking Volume Analysis - Krueger.pdf   1.0 MB | 5,916 downloads
File Type: pdf TRADING FOR BEGINNERS - Why Does Technical Analysis Work[1][1].pdf   192 KB | 798 downloads
File Type: pdf Boris Schlossberg - Stop Hunting with the Big Players (3 pgs).pdf   392 KB | 1,333 downloads
File Type: pdf TAS&C - Trading Currencies Using Multiple Time Frames - Kathy Lien Patrick Dyess.pdf   153 KB | 5,797 downloads
HELL IS EMPTY, ALL THE DEVILS ARE HERE. -- Shakespeare
  • #18
  • Edited 8:54pm Oct 7, 2010 3:15pm | Edited 8:54pm
  •  Czech
  • | Joined Feb 2010 | Status: You Don't Know What You Don't Know | 111 Posts
Quoting CrucialPoint
I totally disagree on all counts...

... but yeah, stick to bigger and longer TF, while I just quietly stick with my 1M and tick TF

Slack and Turveyd, you guys should also stick with longer TF because Danielfppps did some research about bigger TF. OK?
While "lol i am profitable" is a strong point, I'm sure someone as smart as yourself can appreciate empirical evidence. As i described in my original post, the study was posted by that user, not done by him. But regardless of who did the study it still says a lot more than you have.

I, myself, trade a short time frame. I didn't say it couldn't be done I said different time frames present different opportunities. If you'd like to make an actual argument against that I'd be happy to respond!
  • #19
  • Oct 7, 2010 10:22pm Oct 7, 2010 10:22pm
Quoting Czech
While "lol i am profitable" is a strong point, I'm sure someone as smart as yourself can appreciate empirical evidence. As i described in my original post, the study was posted by that user, not done by him. But regardless of who did the study it still says a lot more than you have.

I, myself, trade a short time frame. I didn't say it couldn't be done I said different time frames present different opportunities. If you'd like to make an actual argument against that I'd be happy to respond!
I was laughing because your post depicted that you seem to believe everything you read (IMO). It seem to me that you presented that argument because you supported it, otherwise you wouldn't have brought it up.

Let me highlight your words in red.

Quoting Czech
A long time frame compared to a short time frame presents different opportunities. Search for posts by Danielfppps. He posted a study (which is more evidence then you'll get from any other posters here) that concluded the FX market was weak-form efficient in the short term. What this means is that technical analysis offers no (statistically significant) advantage in short-term FX trading. The reason for that is because the short-term is full of noise. You could have every indication the market...
Are these your own conclusions (in red)? or are they someone else's conclusion? After (you) reading the research you read, I perceived it as your own conclusions (and your stance) agreeing to what you have discovered and understood.



I highly appreciate empirical evidence. I also understand that "empirical evidence" can be manipulated.

Also, it just seems to me that (since you presented this argument) you are unaware of other research that states "lower TF have higher statistical advantage over bigger TF".

I laughed because your argument were no different from the typical arguments such as "global warming". Both sides can produce empirical evidence of research and arguments, it just depends on how good of a marketing publicity it is delivered upon... and/or whatever political grounds, religious or personal gains/agenda it derives upon.

Quoting someone's research does not make it a strong argument.

I couldn't careless whether you are profitable or not, nor whatever TF you trade. Forgive me, I did not elaborate when I said "I disagree on all counts." I felt the previous posts already discussed what I had to say on the matter of this thread.
  • #20
  • Oct 8, 2010 5:13am Oct 8, 2010 5:13am
Quoting Czech
... technical analysis offers no (statistically significant) advantage in short-term FX trading. The reason for that is because the short-term is full of noise.
This is 100% BS. You realize that every single tick/order in the market is a result of someone, somewhere voluntarily pressing the Buy or Sell button? By definition, this means every pip movement has a meaning/intent and can be analyzed either individually or in aggregate.

I cannot figure out how to trade off a tick chart, but I'm not going to say it's full of "noise" due to my lack of skill.
0 traders viewing now