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Trading Made Simple for Day Charts

  • #1,941
  • Feb 19, 2014 8:18pm Feb 19, 2014 8:18pm
Quoting notreally
Here is a trade I just took on the nzd jpy. I don't see a lot of S/L on the way down. 4 hour looks good also. {image}
Biggest challenge will be for PA to break through the 200EMA and then 81.70 - looking good so far.

Weekly S/R levels are shown on the Day chart
Attached Image (click to enlarge)
Click to Enlarge Name: nzdjpydaily 2-19-2014.png Size: 66 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,942
  • Feb 19, 2014 8:22pm Feb 19, 2014 8:22pm
Quoting Buttonjock
Just for interest, skip to a monthly time frame on the audcad, gbpaud and euraud, put a fibonacci on the 2008/2009 high/low and the subsequent high/low in 2012/2013. Go back to a daily chart an see the current price/fib relatioship. Audusd and audjpy have some interesting stuff as well although with different dates and not as immediate as the first three
I like the idea of EUR/AUD breaking through the 38.2 with a nice TDI cross

Current weekly range is 600pips which could be achieved with the current PA momentum
Attached Image (click to enlarge)
Click to Enlarge Name: eurauddaily 2-19-2014.png Size: 66 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,943
  • Feb 19, 2014 8:48pm Feb 19, 2014 8:48pm
Looking more at the candle patterns and especially patterns that repeat.

After a strong week, the Friday candle sets HH / HL and a Higher close, which also closes out the week at a recent high

Sunday can either show a small gain or loss, but the Monday candle engulfs Sunday with Tuesday confirming the PA move.

The full chart shows the indicators in play, and if you zoom out again you will see that this price point has been hot as a closing price on 5 occasions, so a pretty good resistance level

The candles on their own tell you a story - adding indicators can reinforce the opinion - some times!!!
Attached Image (click to enlarge)
Click to Enlarge Name: nzdusddaily 2-19-2014.png Size: 63 KB
Attached Image
"To live with Passion, it takes Courage and Grace to survive"
  • #1,944
  • Feb 22, 2014 4:41pm Feb 22, 2014 4:41pm
Looking for Support and Resistance Levels

Once you have set this up on each chart, it takes a minimal amount of time to maintain - at the end of each week review the chart and see if there is any justification for moving levels / adding new levels.

Chart 1 - start with a blank chart on candlesticks and go to the weekly chart for the pair you are setting up and zoom all the way out - this chart is GU

Chart 2 - switch to Line Chart and look for key prices where you see pull backs / stalls - Use the crosshair to check for multiple price points - the more times the price level is hit, the stronger the S / R level - add Horizontal Lines and depending on your preference, either choose a thicker line or a particular colour for the strongest levels / Historic High / Low. Big Round Numbers (BRNs) also often make for stalling points for PA. 0.5000 1.0000 1.5000 2.0000, etc and often 0.750 1.2500 1.7500, etc The BRNs can be a different colour. At this stage don't put too many lines otherwise everything becomes an s/r level and it will bee too confusing.

Chart 3 - start to zoom in and revert to candlesticks and verify / fine tune your levels. On the weekly chart I will look to put levels at reversals / candlestick closes.

Chart 4 - zoom in one more time and finalize your fine tuning

Chart 5 - switch back to the day chart and you should be set up to show the weekly supprt and resistance levels along with you standard indicators
Attached Image(s) (click to enlarge)
Click to Enlarge Name: s and r levels chart 1.png Size: 58 KB
Click to Enlarge Name: s and r levels chart 2.png Size: 44 KB
Click to Enlarge Name: s and r levels chart 3.png Size: 44 KB
Click to Enlarge Name: s and r levels chart 4.png Size: 58 KB
Click to Enlarge Name: s and r levels chart 5.png Size: 50 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,945
  • Feb 22, 2014 6:00pm Feb 22, 2014 6:00pm
Hi Britpip7
Thanks for your post on setting up S/R levels,it is very useful for referring to and doing as a regular practice as part of a sound trading plan.....
I have attached your post as a pdf file.
Attached File(s)
File Type: pdf Looking for Support and Resistance Levels.pdf   318 KB | 906 downloads
  • #1,946
  • Feb 23, 2014 4:42pm Feb 23, 2014 4:42pm
Quoting OuterWest
Hi Britpip7 Thanks for your post on setting up S/R levels,it is very useful for referring to and doing as a regular practice as part of a sound trading plan..... I have attached your post as a pdf file. {image}
Thanks for the pdf
"To live with Passion, it takes Courage and Grace to survive"
  • #1,947
  • Feb 24, 2014 4:36pm Feb 24, 2014 4:36pm
britpip7,

many thanks for that practical lesson on how to implement S/R levels with this system, i feel that is an extremely essential piece of kit in the toolbox.


is there anything else you can recommend that personally informs your take on the charts with this system?? eg studying candle formations (currently im watching a steve nison DVD series on candlesticks - he is an excellent and engaging speaker btw) . when people talk about price action at S/R do you think that understanding candles is a large portion of understanding price action?

any further recommendations / reading you can suggest would be great. to be able to deploy this system like you do one day would be a great help to my personal situation.


blam
  • #1,948
  • Feb 24, 2014 9:04pm Feb 24, 2014 9:04pm
The weekly S and R levels are very powerful and reversal patterns will form around these levels.

Engulfing Candles bouncing off a S/R level is often a strong signal as is a Pin Bar and Pull Backs with large shadows
Attached Image(s) (click to enlarge)
Click to Enlarge Name: s and r levels patterns 1.png Size: 69 KB
Click to Enlarge Name: s and r levels patterns 2.png Size: 36 KB
Click to Enlarge Name: s and r levels patterns 3.png Size: 56 KB
Click to Enlarge Name: s and r levels patterns 4.png Size: 65 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,949
  • Feb 24, 2014 9:23pm Feb 24, 2014 9:23pm
Introducing ema's into the charts can provide visibility of "Dynamic S and R Levels" as PA hits key emas and bounces away.

The 89ema is often key on the Day chart as is the 200ema

An EMA cross of the 7ema and 23ema can lead to a reversal / trend confirmation

Strong trend runs will often use the 50ema as a dynamic level.

All emas are simple with price = typical hlc/3, shift zero apart from the 7ema which has a shift of 1
Attached Image (click to enlarge)
Click to Enlarge Name: s abd r ema.png Size: 53 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,950
  • Feb 25, 2014 11:44am Feb 25, 2014 11:44am
Quoting Britpip7
Introducing ema's into the charts can provide visibility of "Dynamic S and R Levels" as PA hits key emas and bounces away. The 89ema is often key on the Day chart as is the 200ema An EMA cross of the 7ema and 23ema can lead to a reversal / trend confirmation Strong trend runs will often use the 50ema as a dynamic level. All emas are simple with price = typical hlc/3, shift zero apart from the 7ema which has a shift of 1 {image}
Hi Britpip

You were originally using a 21 and 100 ema. Why the change to 23 and 89?
  • #1,951
  • Feb 25, 2014 12:13pm Feb 25, 2014 12:13pm
Quoting Buttonjock
{quote} Hi Britpip You were originally using a 21 and 100 ema. Why the change to 23 and 89?
89 was from dcginc - he uses it as his main indicator for trends, so not a huge pull in from 100 to 89.

I ran a bunch of testing and the 23 gave me better results especially when looking at H4
"To live with Passion, it takes Courage and Grace to survive"
  • #1,952
  • Feb 26, 2014 12:11pm Feb 26, 2014 12:11pm
Quoting Britpip7
{quote} 89 was from dcginc - he uses it as his main indicator for trends, so not a huge pull in from 100 to 89. I ran a bunch of testing and the 23 gave me better results especially when looking at H4
Ok, thanks for that
  • #1,953
  • Mar 1, 2014 9:43am Mar 1, 2014 9:43am
AU showing a possible Head and Shoulder pattern on the Day chart.

Weekly S/R level may help with the Sunday / Monday candles, especially if we see the Friday / Sunday / Monday reversal pattern.
Attached Image (click to enlarge)
Click to Enlarge Name: audusddaily head and shoulder.png Size: 53 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,954
  • Mar 9, 2014 3:23pm Mar 9, 2014 3:23pm
Been following TDI and TMS for over a year now. On and off cause work and I must say well done Britpip for starting & maintaining this thread. I dont care even if its only two of us on this thread . Ive heard a lot about the benefits of day chart trading and Ive resolved to do just that. Apart from that it will give me time for work and other things.
Can you bring me up to speed with the main differences btw this & the 4hr method.
Once again well done.
  • #1,955
  • Mar 9, 2014 3:41pm Mar 9, 2014 3:41pm
How productive has the system been of pips? how stress free? I intend entering and monitoring my trades only at about 12.00 everyday is that okay? I cant be around every 4hours but I can gurantee 12.00 everyday. I intend to enter after the cross of the TDI, on a daily chart Im beginning to think it might be a little late. What do you say?
  • #1,956
  • Mar 9, 2014 4:14pm Mar 9, 2014 4:14pm
wnabo a total explanation is in post 1, please check. numerous examples fleshing out the system are given on subsequent pages on the thread

Quoting wnabo
Been following TDI and TMS for over a year now. On and off cause work and I must say well done Britpip for starting & maintaining this thread. I dont care even if its only two of us on this thread . Ive heard a lot about the benefits of day chart trading and Ive resolved to do just that. Apart from that it will give me time for work and other things. Can you bring me up to speed with the main differences btw this & the 4hr method. Once again well done.
  • #1,957
  • Mar 17, 2014 4:33pm Mar 17, 2014 4:33pm
Took a GBY trade late last week purely on tdi cross . It went up to 212pips. Left it on trailing stop and got stopped out at +163. Its good to start winning again.
  • #1,958
  • Mar 20, 2014 3:53pm Mar 20, 2014 3:53pm
Thanks Blamshak. I was intentionally impatient cause I didnt want to learn the ropes again but I have started reading it. And except for the occaisional scalp, I am resolved to be a day trader henceforth. Wish I had decided this sooner. I would have made so much money by now without having to sacrifice all that I have.
Im in another trade GBP/USD up 90pips and I expect it will go further. Cheers!
  • #1,959
  • Mar 21, 2014 11:26am Mar 21, 2014 11:26am
Quoting Britpip7
Introducing ema's into the charts can provide visibility of "Dynamic S and R Levels" as PA hits key emas and bounces away. The 89ema is often key on the Day chart as is the 200ema An EMA cross of the 7ema and 23ema can lead to a reversal / trend confirmation Strong trend runs will often use the 50ema as a dynamic level. All emas are simple with price = typical hlc/3, shift zero apart from the 7ema which has a shift of 1 {image}
gr8 input.
pls. post often.

i like ma, using 9 (from macd) and 20 (in bband)

cheers
Attached Image (click to enlarge)
Click to Enlarge Name: gbpauddaily.png Size: 38 KB
  • #1,960
  • Mar 26, 2014 1:02am Mar 26, 2014 1:02am
How about a little more activity in here like this thread deserves!!!
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