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HEAVY Support/Resistance System

  • #41
  • Mar 19, 2014 4:49pm Mar 19, 2014 4:49pm
hi chaosbun

can you explain me what you wanna mean for risk: reward 100 :30 ??
you will risk 100 point in loss, to take 30 point profit?
thank you
  • #42
  • Mar 19, 2014 10:47pm Mar 19, 2014 10:47pm
Quoting Nepul
hi chaosbun can you explain me what you wanna mean for risk: reward 100 :30 ?? you will risk 100 point in loss, to take 30 point profit? thank you
You mean my EUR/CHF trade quite a while ago, yes I will risk 100 pips to ensure my trade is safe and secure.
And take 30 pips scalping profit. There no exact reason why you can't risk 100 just to get 30. Even if you risk 30 to get 100 doesn't mean 1 will be successful and profitable.

The main thing of trading is to secure your capital, follow by making profits.

Risk / Reward need not necessary be 1: N(must be above 1) , the main thing is look at price action and close when need to.
Learn to Trade is Important. Keep your bias & ego aside.
  • #43
  • Mar 19, 2014 10:52pm Mar 19, 2014 10:52pm
AUD/USD Long

Attached Image (click to enlarge)
Click to Enlarge Name: audusd.png Size: 47 KB


Possible buy zone at this price due to historical support.
Learn to Trade is Important. Keep your bias & ego aside.
  • #44
  • Mar 19, 2014 10:53pm Mar 19, 2014 10:53pm
Possible Sell Zone - USD/CAD , Seller appear at 1.127x

Attached Image (click to enlarge)
Click to Enlarge Name: usdcad.png Size: 37 KB


If want to take this position, stop is advisable 10-20 pips above last high.
Learn to Trade is Important. Keep your bias & ego aside.
  • #45
  • Mar 20, 2014 4:24am Mar 20, 2014 4:24am
Chaosbun, i like your way to trade.
For a long time i choice to trade using very smal stop loss, with a rr 1:3 , exactly i risking 3-4-5 pips, to take 9-12 -15 profit.
The most of the direction was right , but price took before my stop loss and then go in my direction.

Regarding the chart of USDCAD you posted, price broke the resistance, i think is something like a stop hunting, so it could be down .
But by the way the difficoult using this R/S strategy is to identify the zone of support and resistance , i wanna mean, we can undestand same exactly point of low /high to take advantage of a support /resistance, but not the zone, this is more difficult.
Last question Mr.Chaosbun,did you never try something like this in 1 min charts?n the scalping way?
  • #46
  • Mar 20, 2014 9:36am Mar 20, 2014 9:36am
Quoting Nepul
Chaosbun, i like your way to trade. For a long time i choice to trade using very smal stop loss, with a rr 1:3 , exactly i risking 3-4-5 pips, to take 9-12 -15 profit. The most of the direction was right , but price took before my stop loss and then go in my direction. Regarding the chart of USDCAD you posted, price broke the resistance, i think is something like a stop hunting, so it could be down . But by the way the difficoult using this R/S strategy is to identify the zone of support and resistance , i wanna mean, we can undestand same exactly...

Hi Nepul,

Thanks for liking my trading style.

The reason why this thread is call HEAVY support / resistance instead of just support/resistance is because HEAVY refer to strong buying/selling at certain point which make its more reliable. M1 is too weak to be term "heavy", while H1,H4 and D1 works better.
Learn to Trade is Important. Keep your bias & ego aside.
  • #47
  • Mar 20, 2014 9:39am Mar 20, 2014 9:39am
Heavy Support spotted at EUR/USD long

Attached Image (click to enlarge)
Click to Enlarge Name: eulong.png Size: 37 KB


SL put 1.3740 will be good. Seems like 1.3750 is DEFENDED as of now.
Learn to Trade is Important. Keep your bias & ego aside.
  • #48
  • Mar 20, 2014 12:24pm Mar 20, 2014 12:24pm
Quoting chaosbun
AUD/USD Long {image} Possible buy zone at this price due to historical support.
Whoever actually follow my pick for today, your AUD/USD should be up by 30 PIPS.
Learn to Trade is Important. Keep your bias & ego aside.
  • #49
  • Mar 20, 2014 12:31pm Mar 20, 2014 12:31pm
Chart to watch for the next few hours > EUR CHF <

Attached Image (click to enlarge)
Click to Enlarge Name: eurchflong.png Size: 43 KB


Should price test 1.2160 , its a good entry. SL will mostly be 100 pips below.
Target Profit is around 30 to 50 pips.
Learn to Trade is Important. Keep your bias & ego aside.
  • #50
  • Mar 20, 2014 12:34pm Mar 20, 2014 12:34pm
Another nice entry will be EUR/AUD long

Attached Image (click to enlarge)
Click to Enlarge Name: euraud.png Size: 47 KB
Learn to Trade is Important. Keep your bias & ego aside.
  • #51
  • Mar 20, 2014 12:37pm Mar 20, 2014 12:37pm
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpylong.png Size: 44 KB


Do the pictures show you something, to me its look like EURO is suppose to be add in dip
Most of the EURO pair tell me that EURO will go higher.


Should EJ fall, I will not be in a rush to add more position, I will wait till the next Heavy Support zone.


P.S: No matter what I say, its still your responsibility to set a STOP LOSS to limit your loss for any trades you open.
Learn to Trade is Important. Keep your bias & ego aside.
  • #52
  • Mar 20, 2014 12:49pm Mar 20, 2014 12:49pm
GBP/USD had daily chart going with old resistance turn support.

Attached Image (click to enlarge)
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Above is a daily chart.

Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh1.png Size: 37 KB


Its also explain why price got supported at H1. If price retest near that zone, I might entry a long.

If I got a position for G/U, my stop will likely be lower than the support line.
Learn to Trade is Important. Keep your bias & ego aside.
  • #53
  • Mar 21, 2014 4:46am Mar 21, 2014 4:46am
Hi Chaos, nice tread. Looking at your chart and post, is it look at 1hr and see the past S/R, and wait for the next long tail at those area to determine if there's support or resistance there. Once long tail appear, go in and trade accordingly. The S/L should be last known S/R?

Do you look at session to determine whether to enter?
  • #54
  • Mar 21, 2014 5:14am Mar 21, 2014 5:14am
By the way my strategy is very close to the strategy of this post.
The difference is that you enter in a 1h -4h .daily signal.
I wait for a 1h 4h -daily signal of support/resistance but then i go in 1 min chart and from there i start my entry .
I dont know why and maybe somebody can help me to understand the reason, but it seems that the ex support and resistance(for example what before was a resistance now become a support) works better than a normal resistance or support with more precision.

The only one problem for my strategy and for what i'm waiting to optimize it , is the trade management, i 'm waiting to understand what is the better for me.
You Chaosbun told me an RR like risk 10 pips(or 100) to take 3 (or 30) in profit.. i wanna try.
  • #55
  • Edited 9:37am Mar 21, 2014 9:00am | Edited 9:37am
Quoting Nepul
By the way my strategy is very close to the strategy of this post. The difference is that you enter in a 1h -4h .daily signal. I wait for a 1h 4h -daily signal of support/resistance but then i go in 1 min chart and from there i start my entry . I dont know why and maybe somebody can help me to understand the reason, but it seems that the ex support and resistance(for example what before was a resistance now become a support) works better than a normal resistance or support with more precision. The only one problem for my strategy and for what i'm waiting to optimize it , is the trade management, i 'm waiting to understand what is the better for me. You Chaosbun told me an RR like risk 10 pips(or 100) to take 3 (or 30) in profit.. i wanna try.

Nepul, as long you can determine the support/resistance level, do NOT enter straight away, look at price action too.
If price do stop, if price is starting to change etc. and then you join in the trend.

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

Quoting danieltang
Hi Chaos, nice tread. Looking at your chart and post, is it look at 1hr and see the past S/R, and wait for the next long tail at those area to determine if there's support or resistance there. Once long tail appear, go in and trade accordingly. The S/L should be last known S/R? Do you look at session to determine whether to enter?
Danieltang, the price keep change, so do Heavy Support/Resistance, I always look at the chart to see if I detect any retracement on a sharp fall/rally, then I might join in following the new trend direction.

Price action is important, look at the candle behavior, always use at least H1, up to D1 for your analysis.
Don't use too low TF, I know its fun to get into trade, but its more fun to win money than regret your actions.

-----------

Placing a trade require some courage, and confidence on the trade you pick, as long you on the right trend, even if price move against you, you need to stand firm and price will eventually be the same way as you.

For example I got a E/J long at 141.10 yesterday, then today it fall to as low as 140.60, but I reopen at that spot, because there some buying at that spot, about 1 hour ago from this post, I just close both of them at 141.28 Not only that trade, I also reopen my GBP/USD long at 80 zone and close at 05, a few times, it is really nice scalping. The same for EUR/AUD which I open at 3x yesterday which is still running, it fall to 7x earlier on (60 pips) and I reopen a new position there, and close after.

I also close my USD/CAD after the good CPI result. The thing is, as long you make full use of the buying/selling zone, not just minor TF like M15 or M5 or even M1, but H1,H4 and D1, and watch the candle, you should be good grinding a few thousand dollars with just 2-3k capital.

You can say its a risky trading method, but its a profitable one once you involve $0 capital.

Inserted Video
Learn to Trade is Important. Keep your bias & ego aside.
  • #56
  • Edited 11:51pm Mar 22, 2014 11:19pm | Edited 11:51pm
Observation since I deploy this strategy for my trading.

1) Profits
2) Lesser mistake
3) No speculation on news

The idea of this strategy is to look for historical support/resistance ( buying / selling zone ) that are of heavy volume.

> Stop Loss need to be deploy, my SL will be from 30 pips to 100 pips.
> Profit taking will be when price stuck or get into ranging

When price hit a previous strong buying or selling zone, it will stop for a while, or a long pin bar will be form. Upon the pin bar form, its show that
there is a lot of buyer/seller at that very point. It could continue fall, but 1 need to watch the candle and then made decision to buy/sell at that zone.

Sometime I just load like $400 to 1 of my FxPro account, go for a 0.8 lot size trade using 1:500 leverage and cash out at $600-$700 equity which is about
$300 profit. Making big profit or large % of your equity does not require a lot of capital.

Its better to use lesser capital and you will have lesser fear. Cash out your winning so you will be consistent instead of making it a big sum then lose it all.
If the trade fail, sometime its wiser to close in small loss when it losing just $20-$40 instead of when it become $200-$400. There surely mistake made
as even me to date also make 1 or 5 mistakes in a week which sometime stuck my trade for 1 - 3 days before it get release in a small profit / loss.


3) No speculation on news

Sometime when Forex economic news release, price will get push to the last historical support/resistance(heavy). Heavy means a support/resistance that is of notable volume. This news will bring the price to the good buy/sell zone and then retrace. Which most of the time it do, unless the news is too strong. Like FED minutes this week which cut down a few EURO/USD support, which at that point I was shorting so its okay.

Most of the time trade are being stop out due to speculate of Whole Number e.g 1.3800 , 1.3900 and assuming they will hold. but the best support/resistance is actually better to be reference from previous support/resistance of notable volume.

You need not be a math expert or a genius to understand this ideology, its just that the big players are buying/selling with their orders at that zone/spot and its better to ride with them.


Hope more people will contribute to the charts and post your heavy support/resistance chart
Learn to Trade is Important. Keep your bias & ego aside.
  • #57
  • Mar 22, 2014 11:53pm Mar 22, 2014 11:53pm
Forex Trading is also about

Buying a Strong Currency //// Against a Weak Currency.

How to notice which currency is strong while which is weak, just look at the price action of the 2 currency.

(1) Strong currency is a currency that despite having bad news against it, it does not move much or so.
(2) Weak currency is a currency that got sell on every rally. The seller holding firm, bad recent news / statement by Central Banker.


So its very simply buying a strong currency against a weak currency. It sound simple and straight to the point, but many people
when jump to the market or trading a live market have no common sense like this, sometime includes me


I am a risky trader, I risk almost 100% of my floating balance at my accounts every week. But I manage to make back quite a big sum for consistent 3 months since I use this system that I observe myself.

Anyone can trade any amount, be it 1% or 2% or even 30% in a trade, as long you are confident and got the right strategy. But never trade amount you cannot
afford to lose.

In the past I used to bias against a certain currency, expect if its go too HIGH, it can't go any higher, this is absolutely wrong.

If it go too high, it can go down. But at a certain previous resistance that turn support(heavy), it can go higher where we say as "Add in dips".
After take away that prejudice of mine, I manage to ride with the trend for quite comfortably.

Every profit counts, 1 need not just close trade for EXTREME profit, sometime a scalp of 10-20 pips per trade, which if you do 5-10 trades , its over a 100 pips and is a good profit if you risk as big as me.
Learn to Trade is Important. Keep your bias & ego aside.
  • #58
  • Mar 23, 2014 12:44am Mar 23, 2014 12:44am
Quoting chaosbun
GBP/USD had daily chart going with old resistance turn support. {image} Above is a daily chart. {image} Its also explain why price got supported at H1. If price retest near that zone, I might entry a long. If I got a position for G/U, my stop will likely be lower than the support line.
good to read your posts and find a good trader using the bband
rare to get bband traders to exchange trading methods in ff

btw what is your setting for bband?
it does not seem to be the standard 20,2 or 20,1?
what ma you use in your chart?

my trade G/U here
http://www.forexfactory.com/showthre...00#post7357000

cheers
  • #59
  • Mar 23, 2014 4:01am Mar 23, 2014 4:01am
Quoting tlpfx14
{quote} good to read your posts and find a good trader using the bband rare to get bband traders to exchange trading methods in ff btw what is your setting for bband? it does not seem to be the standard 20,2 or 20,1? what ma you use in your chart? my trade G/U here http://www.forexfactory.com/showthre...00#post7357000 cheers

I think its 50,2 , I saw your thread on GU but I beg to differ that only if 1.5480 break in a large margin, GU will then continue head south till the next heavy support.

I reload quite a few long at 8x zone and is scalping happily as the support is quite good.
Learn to Trade is Important. Keep your bias & ego aside.
  • #60
  • Mar 23, 2014 8:57am Mar 23, 2014 8:57am
Ok Chaosbun. regarding the money management, for a long time i was using some different way for example 1:3 - 1:2 or 3:1 - 2 :1. Then i realized that for me the most profitable R:R is 1 :1 , but when i reach the profit i cut 3/4 of the trade and put the breakeven. But this way only for 4h or daily trading.
Else in my scalping strategy i use a completely different way to manage the money.
The focus is that if we open a position without sense we have 50 % to win and 50% to lose, with support and resistance we have more than 50 % to win. So i take it easy, using a 1 :1 R:R, but if i lose, i double the lots.
So first 0.1 then 0.2-0.4-0.8-1.6. i know many people dont like the martingale, but i'm using it for a long time and i didn't entered for more of 0,4 so no more of 3 consecutives losing trade. And in the meanwhile doubling the capital.
By the way as i told , this is only for scalping (1 min and 5 min), and i'm still studying to improve this system.

Ps : i would post my completely strategy but i dont know how to become a full member, hoping some advice to do it.
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