Cluster SR - interesting, new way of looking at support & resistance | Forex Factory

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Cluster SR - interesting, new way of looking at support & resistance

  • #1
  • First Post: Feb 12, 2012 6:54am Feb 12, 2012 6:54am
I bet you didn't see this before
please notice the stripes formed and what happends when price reach them,
they function as diagonal support and resistance, take it or leave it
could you trade this? yes sure but you need confluences like horisontal support and maybe a clue on which way the market is going.
the stripes are made by price it self, the MA's are just reflecting that.
so they tend to be valid zones compared to lines
Attached Image (click to enlarge)
Click to Enlarge Name: support.jpg Size: 237 KB
Bulls are stupid Animals!especially when Im short!
  • #2
  • Feb 12, 2012 7:04am Feb 12, 2012 7:04am
Quoting roughtrader
I bet you didn't see this before
please notice the stripes formed and what happends when price reach them,
they function as diagonal support and resistance, take it or leave it
could you trade this? yes sure but you need confluences like horisontal support and maybe a clue on which way the market is going.
the stripes are made by price it self, the MA's are just reflecting that.
so they tend to be valid zones compared to lines
can you share your template?
  • #3
  • Feb 12, 2012 7:05am Feb 12, 2012 7:05am
An interesting variation on rainbow MA's

Do you have a template for this? I'm guessing there must be a hundred or more MA's on there!
  • #4
  • Feb 12, 2012 7:12am Feb 12, 2012 7:12am
Yes it's 700 of them to be exact
template of Cluster MA's right here
Attached File(s)
File Type: tpl csma.tpl   24 KB | 1,777 downloads
Bulls are stupid Animals!especially when Im short!
  • #5
  • Feb 12, 2012 7:20am Feb 12, 2012 7:20am
Quoting roughtrader
Yes it's 700 of them to be exact
template of Cluster MA's right here
So few?

Have you tried using this on multiple charts? I suspect I may get some performance issues!
  • #6
  • Feb 12, 2012 7:20am Feb 12, 2012 7:20am
I will be coming up with some examples how to use them later,
they are comparable to Sam seidens Supply and Demand zones,
with the only difference that you get a clue on where a new supply zone will be,
so in that sence this is a leading indicator while the latter idea is lagging
Bulls are stupid Animals!especially when Im short!
  • #7
  • Feb 12, 2012 7:22am Feb 12, 2012 7:22am
Quoting Andy B
So few?

Have you tried using this on multiple charts? I suspect I may get some performance issues!
Yes I have no problem with that, they are pretty simple indicators and easy driven
Bulls are stupid Animals!especially when Im short!
  • #8
  • Feb 12, 2012 7:35am Feb 12, 2012 7:35am
I'm almost feeling like an geologist trying to interpret different patterns of earth sentiments.
I'm really looking forward to more information.
  • #9
  • Feb 12, 2012 10:06am Feb 12, 2012 10:06am
Here is one way to use the cluster ma's
for example, you want to go long at the arrow,
Im sure many traders did only to find price bounce over 100 pips against them,
if they had this information they would have waited
instead of buying into a resistance area like we see on the indicator
Attached Image (click to enlarge)
Click to Enlarge Name: classic buy signal.jpg Size: 338 KB
Bulls are stupid Animals!especially when Im short!
  • #10
  • Feb 12, 2012 10:09am Feb 12, 2012 10:09am
a better entry would be here,
(zoomed in)
Attached Image (click to enlarge)
Click to Enlarge Name: a better entry.jpg Size: 424 KB
Bulls are stupid Animals!especially when Im short!
  • #11
  • Feb 12, 2012 10:14am Feb 12, 2012 10:14am
These two entrys would have been high probability because we have confluence, they line up with the main trend line, and we have spinning tops
Attached Image (click to enlarge)
Click to Enlarge Name: Hi probability.jpg Size: 393 KB
Bulls are stupid Animals!especially when Im short!
  • #12
  • Feb 12, 2012 10:21am Feb 12, 2012 10:21am
one good and one better, F is good
we have the support and a hammer,
but it is not a high probability trade, just OK,
G is a High probability trade,
because it also have the main trendline in it's back and a hammer.
well maybe not a hammer but a very long allmost a hammer
Attached Image (click to enlarge)
Click to Enlarge Name: one good and one better.jpg Size: 351 KB
Bulls are stupid Animals!especially when Im short!
  • #13
  • Feb 12, 2012 10:31am Feb 12, 2012 10:31am
Here is another way this information can be used,
once you are in a trade, when to get out?
the gsma can give us clues here to, look at the tops of the trend,
there isn't much red there so chances are the trend will continue
Attached Image (click to enlarge)
Click to Enlarge Name: stay in or get out.jpg Size: 366 KB
Bulls are stupid Animals!especially when Im short!
  • #14
  • Feb 12, 2012 10:34am Feb 12, 2012 10:34am
Here it's starting to become more and more red,
and look at that, price crash dives
Attached Image (click to enlarge)
Click to Enlarge Name: get out.jpg Size: 264 KB
Bulls are stupid Animals!especially when Im short!
  • #15
  • Feb 12, 2012 10:39am Feb 12, 2012 10:39am
well thats it for today
Im back soon with more examples,

this is where we are now in the EURUSD
look at that resistance up ahead,
don't go long just yet
Attached Image (click to enlarge)
Click to Enlarge Name: Heavy resistance ahead.jpg Size: 304 KB
Bulls are stupid Animals!especially when Im short!
  • #16
  • Feb 12, 2012 12:37pm Feb 12, 2012 12:37pm
just to give you my view....

since EMAs are averages we are not able to play them profitable in the long run ..... imho.

i never traded EMAs themselves and i never used EMAs for my trading decisions....

leading legging etc... but why the hell should your rainbow tell us/you where buyers or sellers lock in,enter and exit the market ?!

your published screenshots might look clear and ''correct'' ...but to place trades upon these lines is a completely (!) different thing...

as mentioned before this is my very objective view on this,there might be others that trade this or include it into their trading...i dont.

take care,
regards
Jonas
Hero calls followed by margin calls...
  • #17
  • Feb 12, 2012 12:52pm Feb 12, 2012 12:52pm
we are not just playing the averages here,
we play support and resistance, and supply and demand,
and use the information as confluence to whatever trading system we use,
why indeed would this tell us where they buyers and sellers are?
and why would Fibonacci tell us where the buyer are?
who knows? but it does a pretty good job at it. and I think this does too,
maybe it's a force of nature I really don't know. it's a phenomena,
the support and resistance goes in waves aswell as horisontal
this is a way to find out where the diagonal waves are forming.
we can then use this to our advantage in our trading.
before you totally ditch this,
plot the averages on your chart and have a look,
and they are simple MA's not EMA's
you will see that price most often reverse at the stripes,

.
Bulls are stupid Animals!especially when Im short!
  • #18
  • Feb 12, 2012 1:07pm Feb 12, 2012 1:07pm
Quoting roughtrader
we are not just playing the averages here,
we play support and resistance, and supply and demand,
and use the information as confluence to whatever trading system we use,
why indeed would this tell us where they buyers and sellers are?
and why would Fibonacci tell us where the buyer are?
who knows? but it does a pretty good job at it. and I think this does too,
maybe it's a force of nature I really don't know. it's a phenomena,
the support and resistance goes in waves aswell as horisontal
this is a way to find out where the diagonal waves...
as explained before i dont ditch this.... i gave you my heads up for it.... and i know that you cannot trade profitable just by using this indication for your entrys/exits....
Hero calls followed by margin calls...
  • #19
  • Feb 12, 2012 1:09pm Feb 12, 2012 1:09pm
Thanks for the heads up, I guess it's up to me to proove you wrong
Bulls are stupid Animals!especially when Im short!
  • #20
  • Feb 12, 2012 1:15pm Feb 12, 2012 1:15pm
Quoting roughtrader
Thanks for the heads up, I guess it's up to me to proove you wrong
absolutely

i'd like to see some live trades then,

regards
jonas
Hero calls followed by margin calls...
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