HEAVY Support/Resistance System | Forex Factory

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HEAVY Support/Resistance System

  • #1
  • First Post: Edited Apr 21, 2014 2:07am Jan 21, 2014 11:17pm | Edited Apr 21, 2014 2:07am
HEAVY Support/Resistance System

About me: Trade only about 3 years.
Age 25, Singapore, 26 soon at end of July.

Doing Manual & EA trading, alt coin mining and website related stuffs.

A chart speaks a thousand word. But the kind of information obtain out of a chart is different for every individual trader

Attached Image (click to enlarge)
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However the chart did mention good sell, but price could still go higher as its not at the top yet. However its just that the entry at this zone to 1.6500 is a good entry compare to somewhere in between.

Never ever long/short a pair because its near whole number or "good price", rather you should look at previous reaction to the price zone using historical data like H1,H4 TF which tell you where likely seller or buyer could be hiding at for opportunity entry.


Another example of AUD/USD:

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Another example of USD/JPY:

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Click to Enlarge Name: uj.png Size: 54 KB


*Dont bother about the buy on this chart because its an EA that I forgot to switch off, its not my real entry, my real system is on an Non-MT4 system.

Everyday, there are multiple entry to be made on heavy support and resistance.


If you like this system, you can also share your observation on other pair
that is currently in the Heavy Support/Resistance zone.

I will post more live chart rather than historical chart in the future. Its just the beginning . Hope fellow traders can share their support/resistance of Live Chart observation too with picture.

Inserted Video




No matter how good indicators you got, it is always "LAGGED" and not the best thing to consider. The best thing for trading is to use your eyes and look for price action. In my context, which is support / resistance , High Volume @ Low/High - Market Behavior of Buying/Selling at certain price.

There no gurantee that the price will react the same upon touching the same zone, its more of not picking the low or high, but rather put a SL to minimize your impact.

I used to look @ many systems, but the best one I have found is just trading with the market, the trend, if there strong buying, its a turning point, vice versa for selling. It was never easy to hold firm in this ideology, but it have give me more withdrawal than deposit in the past month. more than 100% return of my investment.
Learn to Trade is Important. Keep your bias & ego aside.
  • #2
  • Jan 21, 2014 11:26pm Jan 21, 2014 11:26pm
what are the indicators you have using ?
  • #3
  • Edited 11:47pm Jan 21, 2014 11:29pm | Edited 11:47pm
Quoting asfarajeeba
what are the indicators you have using ?
Frankly speaking what Indicator I use is not important as of this system.

The most important is Heiken Ashi candles for me to look @ price action.

Basically the strength of previous [STRONG] support & resistance is not to be look at lightly.

[STRONG]

Not some weak candle with small volume should be considered, if you notice the 3 charts i posted above do speaks to you how heavy that price is holding.



NEVER EVER GO AGAINST THE FLOW OF TREND. ALWAYS TRADE WITH STOP LOSS. BECAUSE YOU NEVER KNOW HOW FAR A TREND CAN GOES ON.

My kind of trading is more of a scalper, KISS ideology KEEP IT SHORT & SIMPLE.


Guys do share your Support/Resistance insight for today trading

** You can also feedback on my charts / system , I am open to all kind of constructive discussion.
** Your feedback or reply on this thread will keep this thread alive and stay on If lack of attention this thread will probably start to fade away.
Learn to Trade is Important. Keep your bias & ego aside.
  • #4
  • Jan 23, 2014 3:05am Jan 23, 2014 3:05am
Just closed my EUR/USD long in profit

Now added new position to GBP USD Short.


This is a good spot to entry a short position using this HEAVY SUPPORT/RESISTANCE ideology

Attached Image (click to enlarge)
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Learn to Trade is Important. Keep your bias & ego aside.
  • #5
  • Jan 23, 2014 3:43am Jan 23, 2014 3:43am
Another chart to share for today

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So much money to be made . But I not entering this as I am in GBP/USD short for now.

Look @ the previous 2 candle stick, long and show heavy buyer hiding at that area.
Learn to Trade is Important. Keep your bias & ego aside.
  • #6
  • Jan 23, 2014 3:48am Jan 23, 2014 3:48am
hello chaosbun,

what is your TP for gbpusd then...
  • #7
  • Jan 23, 2014 3:55am Jan 23, 2014 3:55am
nice simple logical trading... picking swing points are higher TF SR levels, so will pay really well, especially if you hold them longer.

Why dont you lose all that junk on your charts? you dont need it for your system.
tradewith60
  • #8
  • Edited 4:11am Jan 23, 2014 4:00am | Edited 4:11am
Quoting 60minuteman
nice simple logical trading... picking swing points are higher TF SR levels, so will pay really well, especially if you hold them longer. Why dont you lose all that junk on your charts? you dont need it for your system.
Those junk doesn't affect my vision I used to create a system called TDI H1 Chaos system, but after using it over time, I realize heavy support & resistance of historical price seems to pay off better .

The idea is to entry at the extreme end and even if thing goes against you, the damage is limited. I not trying to pick a high or low here.
Not only looking at previous strong support and resistance zone, we also should look at the candle stick length and the reaction on the price upon retest.


Look @ the Candle stick and price action to get an idea of where price would move next

Thanks for your feedback and compliment 60minuteman. Cheers, enjoy trading.
Learn to Trade is Important. Keep your bias & ego aside.
  • #9
  • Jan 23, 2014 4:10am Jan 23, 2014 4:10am
Quoting chaosbun
{quote} Those junk doesn't affect my vision I used to create a system called TDI H1 Chaos system, but after using it over time, I realize heavy support & resistance of historical seems to pay off better . The idea is to entry at the extreme end and even if thing goes against you, the damage is limited. I not trying to pick a high or low here. Rather looking @ Candle stick and price action to get an idea of where price would move next Thanks for your feedback and compliment
maybe you could explain more how you pick your areas, where you exit and any other nuances (i think for beginners it would be easier for them to understand your concept without all the indicators..)

tradewith60
  • #10
  • Jan 23, 2014 4:13am Jan 23, 2014 4:13am
Quoting 60minuteman
{quote} maybe you could explain more how you pick your areas, where you exit and any other nuances (i think for beginners it would be easier for them to understand your concept without all the indicators..)
My exit is when price stop moving when e.g for GBP/USD

if it fall and touch a previous support and went into tight trading zone, I might consider adjust my SL in profit / Trail stop or close position in profit.
I might use TDI for such move too.

My entry is simple, look @ the candlestick as can see on the AUD/USD & GBP/USD chart I post today .

The Candlestick length and the reaction when retest previous strong support/resistance.

Out of all the indicator I use, the only one that is needed for this system is simply Heiken Ashi, and probably TDI for my exit usage.
The TF that I play is at least a H1, sometime I use H4 , D1 is the rare case.



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There is no guarantee that my entry is a 100% profit, its just that the chance of winning is higher than usual.

HEAVY is used because as you can see on previous resistance, the reaction is a very strong bearish movement.

** However price might not repeat like what It does on previous case.

Fundamental events can change the technical outlook. Its just I look @ Candlestick & the previous reaction thus I decided to short.

The fall might not occur instantly, sometime its can took 1 day, 2 days or maybe 1 week to get to a proper return of investment.


----------
Another possible chart on heavy resistance zone

EUR/AUD

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Learn to Trade is Important. Keep your bias & ego aside.
  • #11
  • Jan 23, 2014 6:02am Jan 23, 2014 6:02am
Hey, thank for time to post your system. Is based on solid principles. How do you use Heiken Ashi as part of this? e.g Is entry after candle changes color, with stop above the swing? Or is it to stay in the trade?

Sorry if I jumping ahead.
  • #12
  • Jan 23, 2014 8:34am Jan 23, 2014 8:34am
I use very similar simple resistance and support strategy, maybe the same if i am understanding you right... but i only use TDI and Stochastic to confirm entry or exit SOMETIMES.

It works really well if you are good at spotting those entries. Thanks to this i may be getting a serious trading job soon.


Anyway i was wondering if its possible to create an EA based on this... i always wondered, never really searched if there is one there.


Entries for SHORT could be under the resistance line. SL few pips above from entry resistance line.


Entries for LONG few pips above support line. SL few pips under entry support line.

TP is harder to figure out.

I think it could work well on 4 hour chart.

Is there such an EA out there, can someone make it happen?
  • #13
  • Jan 23, 2014 8:51am Jan 23, 2014 8:51am
Quoting minute
Hey, thank for time to post your system. Is based on solid principles. How do you use Heiken Ashi as part of this? e.g Is entry after candle changes color, with stop above the swing? Or is it to stay in the trade? Sorry if I jumping ahead.
Heiken Ashi is good as u can see the HA High,Low,Open & Close.

Main concern is the high/low vs the close. How much seller & buyer appear at a certain price zone.


TimeFrame that I use mainly is H1, and then H4(sometimes).

Entry can be before candle change color, probably when you meet some long wick or you think seller/buyer is heavy at a certain price which previously serve as a turning point of price.

Stop loss can be at the high/low + N pips where N is a value u want, probably 10 pips. But its up to you.


Quoting teofil00
I use very similar simple resistance and support strategy, maybe the same if i am understanding you right... but i only use TDI and Stochastic to confirm entry or exit SOMETIMES. It works really well if you are good at spotting those entries. Thanks to this i may be getting a serious trading job soon. Anyway i was wondering if its possible to create an EA based on this... i always wondered, never really searched if there is one there. Entries for SHORT could be under the resistance line. SL few pips above from entry resistance line. Entries for...

Actually its not necessary to use EA to do this, the amount of trade you could open a day is probably less than 3, the thing is not to get in fast, its rather to get in "right". Move with the market.


TP is depend on individual appetite for risk, probably some would be happy with 30 pips while some prefer a 100 pip profit. What can be done is to put SL in break even + 1 to protect your original equity.


I would always advise you not to use an EA if you are serious enough, its better to train yourself rather than rely on coding.
For real money trading, I still advise you to learn to pick chart & post it here, then share & let other users feedback on your entry. Be it a mistake or a good entry.


I myself do use EA but that EA is more for long term, rather than this system.


Take a look at the chart below.

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Did you notice that in the past few days, price touch the same zone . went up & then went down again and then went up.

This is showing you that buyer is appearing at that PRICE ZONE, I would call it HEAVY SUPPORT.

The concern is, price might break lower because the buyer might have run out of stream, mostly entry is best at the 2nd time test of the heavy support/resistance.


Another chart to see

USD/JPY

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What do you think will happen if price test 38.2% again, the 102.90 - 103.20 zone, It might not even test that zone if 50.0% fibo hold.
However a good entry for long would probably at the 102.90 - 103.20 zone.
Learn to Trade is Important. Keep your bias & ego aside.
  • #14
  • Jan 27, 2014 3:55pm Jan 27, 2014 3:55pm
Yeh my biggest weaknes is over trading when I get confident. .. I am not a patient guy but this works best with me when I am disciplined. EAs are not good I know but I dont believe there isn't a profitable ea out there.
  • #15
  • Feb 10, 2014 1:02am Feb 10, 2014 1:02am
Reviving my death thread

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A long position at 0.8970 - 80 zone looks good

My Entry Plan

Long @ Current price 0.8988 (1/3 equity in)

-----------------------

If price continue to fall and show heavy buying candle

I will look to long another batch at 0.8955

----------------------

If price went up and breach 0.9000 and touch 0.9030 and retrace

- Add Long Position @ 0.9015
Learn to Trade is Important. Keep your bias & ego aside.
  • #16
  • Feb 10, 2014 1:09am Feb 10, 2014 1:09am
My trading records for 28 Dec 2013 to Today
(Why 28 dec and not other date, because its the date I start my other thread TDI H1 Chaos System)

Deposit Payment In:

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Withdrawal Cash out:

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I am using CMC Market Singapore for the nice spread and easy cashout / deposit without fees.

I am using FxCM for my analysis in Mt4


For now I am comfortable with trading with $4000 SGD on my account, and making big entry ( 1/3 to 1/4 of my equity ) per Trade Position


-- For how I manage to keep winning

Its simple , don't just follow blindly on your Indicator, look at the price action , Volume at High / Low and you will ride the trend.

Even if price went against you, eventually things will goes back your way and you can cash out your position.
Learn to Trade is Important. Keep your bias & ego aside.
  • #17
  • Feb 10, 2014 1:17am Feb 10, 2014 1:17am
Some gold bear lover, will you short at this point?

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I will like to short but my broker at CMC seems to have extremely bad margin leverage and the profit will be very minimal using much of my equity.

A SL at 1290 would seem perfect to cut loss.
Learn to Trade is Important. Keep your bias & ego aside.
  • #18
  • Feb 10, 2014 2:47am Feb 10, 2014 2:47am
Going in for my 2nd entry of USD/CHF Long

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After that I will wait.
Learn to Trade is Important. Keep your bias & ego aside.
  • #19
  • Feb 10, 2014 2:56am Feb 10, 2014 2:56am
Actually I don't see what's wrong with using indicators. Even prop traders use indicators, bank traders rely on things like RSI, moving averages too; all depends on the system.. but as a rule of thumb, indicators that give similar/same information shouldn't be used together.
Build good relationships with others.
  • #20
  • Feb 10, 2014 9:46am Feb 10, 2014 9:46am
Quoting shellsnail
Actually I don't see what's wrong with using indicators. Even prop traders use indicators, bank traders rely on things like RSI, moving averages too; all depends on the system.. but as a rule of thumb, indicators that give similar/same information shouldn't be used together.
Nothing wrong with using Indicators. I am also using them, but sometime indicator are lag thats why I mention don't follow blindly. Even using indicator, we should apply some of our evaluation and judgement to place a proper entry.
Learn to Trade is Important. Keep your bias & ego aside.
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