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

  • #121
  • Feb 16, 2012 2:18am Feb 16, 2012 2:18am
Quoting isengoz
ok, I am in for a long at 1.3014 and aiming for 1.3057 which includes my revenge trade and 30-pips daily target. anyway, it might go up to the daily pivot or at least to the daily open. it's +5 at the moment. let's see what happens...
Good luck, let's hope you get out at 1.3500
  • #122
  • Feb 16, 2012 2:23am Feb 16, 2012 2:23am
Here is an example of the red belts, supply demand is going practically flat,
it means there is no real bias in the market, we can expect chop an volatile swings, and as you can see that is what happends
Attached Image (click to enlarge)
Click to Enlarge Name: shop.jpg Size: 252 KB
Bulls are stupid Animals!especially when Im short!
  • #123
  • Feb 16, 2012 2:23am Feb 16, 2012 2:23am
Quoting fosking
Good luck, let's hope you get out at 1.3500
oops, stopped out. price is ranging at the moment. I think I pulled the stop to BE too early. anyway, there will always be another trade... good luck to you, too fosking. thanks for your support...
  • #124
  • Feb 16, 2012 2:33am Feb 16, 2012 2:33am
Quoting roughtrader
Here is an example of the red belts, supply demand is going practically flat,
it means there is no real bias in the market, we can expect chop an volatile swings, and as you can see that is what happends
I was looking at these "cloud squeezes" and it could be made into a trading opportunity.

Look at the squeeze on the chart below and how it breaks out of the tight range. It's like a Bollinger Band squeeze.
There may be opportunities to play these breakouts.

Attached Image (click to enlarge)
Click to Enlarge Name: squeeze.png Size: 721 KB
  • #125
  • Feb 16, 2012 2:41am Feb 16, 2012 2:41am
Quoting fosking
I was looking at these "cloud squeezes" and it could be made into a trading opportunity.

Look at the squeeze on the chart below and how it breaks out of the tight range. It's like a Bollinger Band squeeze.
There may be opportunities to play these breakouts.

Attachment
Another couple of examples on UJ.

USD/JPY M5
Attached Image (click to enlarge)
Click to Enlarge Name: uj1.png Size: 392 KB
  • #126
  • Feb 16, 2012 2:52am Feb 16, 2012 2:52am
you should only be thinking of long positions on this chart, why? because that red thick belt is flowing upwards, that means thats demand
Attached Image (click to enlarge)
Click to Enlarge Name: only longs.jpg Size: 240 KB
Bulls are stupid Animals!especially when Im short!
  • #127
  • Feb 16, 2012 2:59am Feb 16, 2012 2:59am
Here you should only be looking at shorts, why? because the stripes are flowing downwards, exept the box where you could have traded the extreme like a overbought oversold indicator, a hint is the closest red stripe that are going sideways, also using RSI or stoch might be a good idea for extra confirmation. in that case you would fade the move and trade against it's direction
Attached Image (click to enlarge)
Click to Enlarge Name: only shorts.jpg Size: 244 KB
Bulls are stupid Animals!especially when Im short!
  • #128
  • Feb 16, 2012 3:01am Feb 16, 2012 3:01am
Quoting fosking
This gold trade is up currently at around +800 with me stop locking in +500.

Gold M5
Attachment
Closed +900.
  • #129
  • Feb 16, 2012 3:05am Feb 16, 2012 3:05am
I can see one big advantage for you guys who are using a tredning systems, if you see that red belt is going sideways and starting to developing sideways, thats a good place to temporary stop trading your system, because there will be much chop, thats why all the Robots and EA's fail in the long run, they are incapable of switching from trending mode to sideways mode and vice versa, and since trend trading don't work in a sideways market, here is where they will begin to loose money, but maybe now some programmer can use this information or MA's into their robot and make a real good one for a change.
Bulls are stupid Animals!especially when Im short!
  • #130
  • Feb 16, 2012 3:29am Feb 16, 2012 3:29am
Here is a perfect example on a sideways market,
note that the red belt is going perfectly sideways,
this will make you more confident using a fading strategy,
because you can see with your own eyes the amount of sellers and buyers and equal,
in that case you would be buying when price goes below the red belt and selling once it go above the red belt, selling and buying extremes, using a overbought oversold indicator also is recommended, and ofcource other confluences like SR, this range in this pic is a little too narrow for my taste,
Im just showing it to make a point, I would try to find these with a larger space between the entry and the red belt (take profit point) because I would take profit before price reached the red belt again, I wouldn't wait until price run through it because it maybe won't, you need to think about risk to reward here. you need some experience to trade this kind of markets and I don't recommend it to new traders.
if you like more safe trading it's probably best you stay out when this happends in the market.
Im just showing this yet another funtion of the cluster MA's
allmost forgot, when we are seeing this behaviour in the markets it is not advisable to go long or short using the red belt or stripes as support and resistance the normal way we have been trading in the examples before, the reason is because the market is without direction, so there is no momentum either to the long side or the short side, which means anything could happend next, up or down we don't know.
Attached Images
Bulls are stupid Animals!especially when Im short!
  • #131
  • Edited 4:12am Feb 16, 2012 3:56am | Edited 4:12am
Yet another function or information we can get using the cluster MA's,
if you are a long term trader in a trend and then suddenly it reverses on you,
did the trend change? should I exit?
check the MA's, what is the direction of the stripes and zones?
up down sideways, before you even should start to worry they should be atleast going sideways. priceless information
Attached Image (click to enlarge)
Click to Enlarge Name: Retrace.jpg Size: 232 KB
Bulls are stupid Animals!especially when Im short!
  • #132
  • Feb 16, 2012 4:08am Feb 16, 2012 4:08am
Quoting fosking
Another couple of examples on UJ.

USD/JPY M5
Attachment
Yes I agree, what you should be looking for is a long bullish brakeout candle,
it needs to be long to indicate there is some force behind the move,
we should see the fan expanding after that to show the momentum is increasing,
if you just have a small not so bullish brakeout candle, the trade can be in danger and can be a false brakeout
Bulls are stupid Animals!especially when Im short!
  • #133
  • Feb 16, 2012 4:10am Feb 16, 2012 4:10am
Quoting fosking
Closed +900.
thats a great trade! keep posting your result
Bulls are stupid Animals!especially when Im short!
  • #134
  • Feb 16, 2012 5:08am Feb 16, 2012 5:08am
I see a spinning top on EU h4. I hope it's a sign of reversal, although I don't expect much until unemployment claims... couldn't resist and entered a long again...
Attached Image
  • #135
  • Feb 16, 2012 5:13am Feb 16, 2012 5:13am
Template for Tradingstation2 here
Attached File(s)
File Type: zip CSMA.zip   2 KB | 388 downloads
Bulls are stupid Animals!especially when Im short!
  • #136
  • Feb 16, 2012 5:30am Feb 16, 2012 5:30am
Quoting isengoz
I see a spinning top on EU h4. I hope it's a sign of reversal, although I don't expect much until unemployment claims... couldn't resist and entered a long again...
Yes you are right, that could be a good trade,
it's also a 50% fib and horisontal support
so that looks good I think,
but there is something above there,
maybe think about TP before it reach that area if you get in,
Im also a little puzzled about the monthly chart,
from the looks of it I think it can continue down to,
but isn't that a huge bullflag? could it reverse,
nothing is impossible
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURUSD Monthly2.jpg Size: 178 KB
Click to Enlarge Name: EURUSD H4.jpg Size: 228 KB
Bulls are stupid Animals!especially when Im short!
  • #137
  • Feb 16, 2012 5:49am Feb 16, 2012 5:49am
Just read this thread and wanted to congratulate roughtrader for your original thinking. I am not yet sure i will incorporate this and use it but so many people use ma's - i can understand why some zones are respected.

Well done mate on your creativity.
Enter Signature
  • #138
  • Feb 16, 2012 5:49am Feb 16, 2012 5:49am
Quoting roughtrader
Yes you are right, that could be a good trade,
it's also a 50% fib and horisontal support
so that looks good I think,
but there is something above there...
well, my bias is that the euro will continue to go down. but I 'wished' it retraced a bit (~40-50 pips) but it doesn't want to go up. I am thinking of getting out as soon as I get to BE. if I followed my usual dance trading opportunities I could have done my 30 pips by now. my bad habit is that I try to catch the price reversal points and almost always fail. by the way, thanks for your insight...
  • #139
  • Feb 16, 2012 5:53am Feb 16, 2012 5:53am
Quoting Sarythsaya
Just read this thread and wanted to congratulate roughtrader for your original thinking. I am not yet sure i will incorporate this and use it but so many people use ma's - i can understand why some zones are respected.

Well done mate on your creativity mate.
Thank you!
I appreciate that
Bulls are stupid Animals!especially when Im short!
  • #140
  • Feb 16, 2012 6:02am Feb 16, 2012 6:02am
Quoting isengoz
well, my bias is that the euro will continue to go down. but I 'wished' it retraced a bit (~40-50 pips) but it doesn't want to go up. I am thinking of getting out as soon as I get to BE. if I followed my usual dance trading opportunities I could have done my 30 pips by now. my bad habit is that I try to catch the price reversal points and almost always fail. by the way, thanks for your insight...
yes I guess nobody knows the direction, if we knew we would all be rich!
here is another thing of the EU 5M I noticed,
there is kinda like a bearish wedge,
and also a triangle forming,
I guess you could trade the brakeout as trigger,
if it brakes out
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD M5 better pic.jpg Size: 144 KB
Attached Image
Bulls are stupid Animals!especially when Im short!
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