Swing Trading with Major Support/Resistance | Forex Factory

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Swing Trading with Major Support/Resistance

  • #1
  • First Post: Sep 22, 2013 10:22am Sep 22, 2013 10:22am
I'll be using this journal to track swing trades, taking into account major horizontal support and resistance levels. I'll be showing screenshots, as much as possible, when I place my trades (in order to analyze them and learn from them later). If anyone has any questions or feedback, feel free to participate. I'm by no means a pro, but I have been trading FOREX for the past 6 years part-time.

Basic Approach:

  1. I generally start by drawing major horizontal S/R lines on weekly charts
  2. I then look at the daily charts to get an idea of where price is going in the short term (e.g. is price moving up with room to spare before it hits a major weekly resistance level?)
  3. I use Fibonacci retracements on the daily charts to make my trades

  • #2
  • Sep 22, 2013 10:34pm Sep 22, 2013 10:34pm
Nothing much to update on at the moment. I don't have anything traded yet so my trade tracker isn't showing any stats.


The main pair I'm watching for now is USD/CAD for a potential long trade. I still need to wait though until price comes down a bit (if it does...). For now, I'm just waiting to see what happens.


USD/CAD

Weekly:
Attached Image


Daily:
Attached Image (click to enlarge)
Click to Enlarge Name: usd-cad daily.png Size: 123 KB


Hourly:
Attached Image (click to enlarge)
Click to Enlarge Name: usd-cad hourly.png Size: 181 KB



GBP/USD

GBP/USD is an example of a situation that I'm looking to avoid (even though it looks slightly appealing). The main issue is how close current price is to a major weekly resistance level. I avoid trades like this, where there is a higher than desired risk of price turning on me.

GBP/USD Weekly:
Attached Image


GBP/USD Daily:
Attached Image (click to enlarge)
Click to Enlarge Name: gbp-usd daily.png Size: 147 KB


GBP/USD Hourly:
Attached Image (click to enlarge)
Click to Enlarge Name: gbp-usd hourly.png Size: 196 KB
  • #3
  • Sep 22, 2013 11:03pm Sep 22, 2013 11:03pm
Quoting mclosson
I'll be using this journal to track swing trades, taking into account major horizontal support and resistance levels. I'll be showing screenshots, as much as possible, when I place my trades (in order to analyze them and learn from them later). If anyone has any questions or feedback, feel free to participate. I'm by no means a pro, but I have been trading FOREX for the past 6 years part-time. Basic Approach: I generally start by drawing major horizontal S/R lines on weekly charts I then look at the daily charts to get an idea of where price is...
Way to go man I'm intending to start trading soon and will do only swings too. Gonna use the price action patterns e.g. the pin and inside bars and false break outs to determine entries. I think if you mixed that with your experience in support and resistance levels that would increase the profitability of your trades.Just a ssuggestion ... Good luck
So sorry for always replying late! But I got 2 Jobs!!
  • #4
  • Sep 23, 2013 11:55am Sep 23, 2013 11:55am
Quoting Muhammad Ezz
{quote} Way to go man I'm intending to start trading soon and will do only swings too. Gonna use the price action patterns e.g. the pin and inside bars and false break outs to determine entries. I think if you mixed that with your experience in support and resistance levels that would increase the profitability of your trades.Just a ssuggestion ... Good luck
Thanks Muhammad. Yes, price action patterns/bars can be quite useful, especially when combined with horizontal support/resistance levels and trend lines. That said, I personally tend to keep it fairly simple in that I mainly look for bars with long wicks and bars that don't move much in any direction. These give me an indication of weakness near major support/resistance or periods of indecision.

Cheers.
  • #5
  • Sep 23, 2013 12:42pm Sep 23, 2013 12:42pm
Quoting mclosson
{quote} Thanks Muhammad. Yes, price action patterns/bars can be quite useful, especially when combined with horizontal support/resistance levels and trend lines. That said, I personally tend to keep it fairly simple in that I mainly look for bars with long wicks and bars that don't move much in any direction. These give me an indication of weakness near major support/resistance or periods of indecision. Cheers.
Aha all the best
So sorry for always replying late! But I got 2 Jobs!!
  • #6
  • Sep 23, 2013 1:25pm Sep 23, 2013 1:25pm
Good luck man!
  • #7
  • Sep 23, 2013 9:05pm Sep 23, 2013 9:05pm
Quoting pbylina
Good luck man!
Thanks pbylina!
  • #8
  • Sep 24, 2013 9:16pm Sep 24, 2013 9:16pm
The potential trade I was looking for with USD/CAD didn't materialize; price didn't retrace like I thought it might. I spent a bit of time this afternoon looking for other trades and found something with AUD/USD.


AUD/USD

I've placed a trade (long) on AUD/USD a few hours ago.

Weekly:
Attached Image (click to enlarge)
Click to Enlarge Name: audusd - weekly.png Size: 145 KB


Daily:
Attached Image (click to enlarge)
Click to Enlarge Name: audusd - daily.png Size: 169 KB


Hourly:
Attached Image (click to enlarge)
Click to Enlarge Name: audusd - hourly.png Size: 290 KB
  • #9
  • Sep 25, 2013 7:25am Sep 25, 2013 7:25am
Quoting mclosson
I've placed a trade (long) on AUD/USD a few hours ago.
The AUD/USD trade didn't work out - was stopped out. Unfortunately, support wasn't able to hold. It will be interesting to see if the previous support becomes resistance. At this point, though, I'll stay away from AUD/USD until it shows it's hand a bit more.
  • #10
  • Last Post: Sep 25, 2013 10:02pm Sep 25, 2013 10:02pm
I'm now looking at USD/JPY on the hourly chart. There's some potential resistance around 99.13 that could stop a recent bullish move. At this point, I'm waiting to see if bearish price action occurs in the coming hours. USD/JPY currently looks to be in a bearish trend on the daily chart.

Attached Image (click to enlarge)
Click to Enlarge Name: usdjpy h1.png Size: 260 KB
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