Take it as it is

Looks familiar, I'm sure you'll soon have it running like clockwork

Only kidding, good luck with your new thread and well done for passing on the method.

Hi VB !

Thanks for introducing this thread ;-)
It seems to be going in the right direction ;-))
By the way are you combining support and resistance with volume flow ?

Happy trading

Bernhard

Very interesting. I really like what I had read thus far. Keep up the great work.

Ha!

Thanks for the compliment, but Clockwork is light years ahead of me!

Thanks for dropping in also, everyones welcome

Hi Bernhard,

As far as I know volume is not really used in Forex as it is not 'centralized'.

Volume may work well on stocks, not that I trade them, so don't quote me on that. However I have read a great deal about it.

Thanks for popping in!

This is extremely basic information. But in Forex, like in life, basic is important; breathing, eating and exercise are very basic, but very important.

surely, foundation means a lot)

but simultaneously we should create a lot of new strategies, methods, whatever..to stand out, not to be trivial

Okay

So by now you must be wondering what is next?
Well let me start by saying you should now have the basis of Support & Resistance down, just by having this has significantly increased your chances of success.
When price has approached one of these areas you have marked out on your chart you sit tight and wait.

Have you ever been in a situation where you needed to make a decision on a whim? Where it could be a 50/50 chance you made the right choice if you said yes or no, let’s take roulette for example, black or red.

Everyone knows that playing roulette is a gamble, but let’s pretend for a minute that if you were playing roulette and you had a whisper in your ear that some one is going to jolt the table for you so that you have a higher chance of it landing on your choice of colour, it’s not much, but a jolt gives you an advantage, it might not work every single time but it does work.
So now you can pretend that your support & resistance is your ‘jolt’ – Support & Resistance is purely price driven by fear and greed and of those with what we would call intuition. This is something you eventually develop.

If you played this game enough times the odds are you would walk out with more money than you went in with.

So now we can define where we are interested in trading, at the Support & Resistance area. What else can we come up with that may help us have an advantage?

There are a number of things that I have come across as my time as a trader, to name but a few, divergence, Fibo’s, chart patterns, and of course your million different wiggly lines, but the spaghetti doesn’t really do much except for tell you what’s already happened, right? So what else is there that you can use? Price Action! there is none other better.
So if we can go back now, to our waves theory, a trend inside a trend inside a trend, remember this? Supposedly your looking at your 1 Hour chart and you have plotted a Resistance area and price is now sitting at it, squirming up and down and it’s not sure what to do yet, your not really quiet sure what to make of it yet either, is it going to go up? Or is it going to go back down???

One thing I have learned to do is to put the wave theory into practice, drop down from your 1 hour chart to anything lower, the lower you go the less clarity you will get (I like to drop down to a 15M from a 1Hr and from a Daily to a 4Hr and so on), but take a look at the oscillations of the waves, obviously in an up trend your waves going up will usually be longer than your waves going down, sometimes equal, but let’s just say for now they are longer. So you take a quick look at your lower time frame and what do you see? You start to notice that it’s not quiet going longer anymore, rather in fact, it could be going the same, so your consolidating…

Now there’s a couple of things you can do here, you can plot some more mini Support and Resistance lines here on your 15 Minute chart on the High and the Low and watch for the oscillation to change, and then you wait for price to break down below the Low or above the High, this will be your heads up.

Think for a minute, the psychology being driven behind this – Price breaks up higher, what’s going to happen next? It will either find more buyers to proceed higher again or it will drop back down. What does this tell you? It should be saying that no one is particularly interested in buying above this level at this time, that should be a scream to you saying that the buyers that bought there have lost. What happens next? Those very same buyers who are still holding their positions have had their trades reversed and they very quickly realise this and they freak out, wouldn’t you? This is fear of loosing, why not use this to your advantage??? They will soon close their positions and in effect this will reverse their positions from a buy to a sell just by closing their trades, this will usually cause a spur of momentum for price to start falling.

Now’s your chance!

Does the 1 Hour chart look bearish now? Or does it look so, so?

This is where your intuition comes into play, you either do or you don’t, what’s it going to be? Make up your mind and make it up quickly because this does not stay like this forever.

So here you have the basis of the method, the rest is the finer details of Money management and Risk.
You do this enough times you become good at it, like anything in life. If any of you have ever driven a car very fast around corners, do you hesitate to put the brake on a bit before hitting that corner and instead push the accelerator down even harder to steer your way out of the corner? Or do you hit the brake and freak out? Think about this for a moment… the same principals apply.
You either do or you don’t, you crash and you die or you live to fly around another corner another day.

What I am getting at here is you have to learn to let go, let the chart tell you what you should be doing, don’t let anything else interfere. This is your bread and butter, you need to do this for yourself, it comes with practice… practice… and lots more practice, do this enough times you develop the gut to go with the flow or you know when to stay out.
No one said this was going to be easy… did they??? They did???? Who????

This here is the foundation to trading successfully without any indicators, obviously with a bit of time you can too make this work for you.

Now in having said that, I didn’t say it doesn’t help not to use indicators, however this is up to the individual to do what works for them, for one you could look for a divergence using a big mac, stoch’s, anyone? What about CCI?
I’ll post some more charts soon and some more information as it comes to me

In the mean time,
Good luck
Brady,

One more thing for today...

The higher the time frame you apply this method of thinking to the easier it can become.

You have a bit more time to decide what you want to do and how you're going to do it, you can wait for all the confirmation in the world but it's not going to change anything, only confirm what you thought what was going to happen, obviously by then your too late.

What a wonderful explanation. A plain chart only price trading.

Nice Job Dude For Sharing

sure well done man!

Now... to determine which way it's going to go.

Seems kinda evident but can never be sure, remember what I said about accepting losses ???

An update of the possible Eur/Aud trade coming up

Take note though that the 1 Hour trend is essentially in an up trend, whereis the Daily is in a down one, mind you it is quiet over-sold, speaking of which it may continue it's journey up North.

Let the price on the chart determine this huh?

I've included a zoomed in version of the 15M to see the finer waves

So by now you get the idea yeah?

This is just an example of 1 trade, there is plenty across all pairs on all time frames.

You are doing very good job here, brother!

I have read all your info giving here with big interest, and I want to re-read it again another time today!

Keep it going!

Take care!

Finally, a great trading system on this forum without 15 indicators on the carts. Congratulations and just continue to work.

Good very nice VB...........im follow.......

Follow you with interest!

Have done my homework with charts already