Attachments: S&R short term bounces

S&R short term bounces

#581
Edited 3:51am Nov 27, 2013 3:39am | Edited 3:51am

M.A.C.Doug
Joined Jul 2007 | Status: Trader | 1,685 Posts

Here is what I do with this technique. I was targeting 8 pips net with a 4 pip stop. Both trades bounced at least enough to pay me twice my risk. It helps to have the right market conditions and be trading with the trend. There is also a much higher probability if there is a confluence of support/resistance. The best entry would have been when price touched the ma + prz at around 3pm on the chart today, but I was not present for that one

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#582
Nov 27, 2013 2:26pm Nov 27, 2013 2:26pm

S_Ferrer
| Joined Apr 2012 | Status: Trader | 97 Posts

M.A.C Doug, this is a thread I'd like to see re-ignited.

Sam01082 and Findus have left the building it seems, most unfortunately.

You take your lines from a higher TF - and look for entries on the M5/M15 - clean S/r of course?

Question to you - and to others - what defines 'support', what defines 'resistance' - how many touches and so on?

#583
Nov 27, 2013 3:25pm Nov 27, 2013 3:25pm

mongolian
Joined Oct 2008 | Status: Trader | 523 Posts

I've liked this thread from the beginning. I do think however that the 12 pip TP and the 24 pip SL is backwards, at least for me. What I have noticed is that price moves naturally @ the whole numbers, the .50 levels, the .25 levels and also @ 12.5 pip levels. So depending on the time frame a trader can use any of these as natural support and/or resistance. The chart I have included is a 5M with lines drawn @ the 12.5 pip levels - basically cutting the .25 levels in half. Quick glance I marked the obvious trades I would take - looking for 12.5 pips (less spread or commission or however you pay for the fun of trading). I like trades that retrace back to the level before entering, but that's my preference.

I don't trade exactly like the examples in this thread, but what I've found to be important is being able to 'read' Price action and have a decent understanding of what it may or may not do. Food for thought.

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#584
Edited 6:58am Nov 28, 2013 12:47am | Edited 6:58am

M.A.C.Doug
Joined Jul 2007 | Status: Trader | 1,685 Posts

Quoting S_Ferrer

Disliked

You take your lines from a higher TF - and look for entries on the M5/M15 - clean S/r of course

Ignored

That is top down analysis and yes I do that. Mainly 4 hr chart price reversal zones (prz), fibs, trend lines and daily pivot points. Ideally you want at least two of these lining up at the level you wish to trade from.

Quoting S_Ferrer

Disliked

what defines 'support', what defines 'resistance' - how many touches and so on?

Ignored

The only true support or resistance are areas where price has changed direction in the past. Those areas are proven. That is no garrantee about what price will do in the future though. Fibs. pivot points and trend lines are theoretical projections for future s/r. As with all tech analysis s/r works 50% of the time. There is no edge. But when market condition is included, you can get set ups that have a slightly higher probability and provide a small edge.

Strong trends are good trading environments to trade in the direction of the trend, after a retracement to your s/r level. Range bound markets are also good to fade moves in oversold/bought areas at your predetermined strong s/r levels.

Its a short term prediction of what price is probably going to do in the next few minutes after touching support/resistance. I believe it is possible to make such predictions with enough accuracy to beat the spread and make a profit. It takes patience and discipline to wait for price to come to you and to let price do the reacting and not you.

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#585
Nov 28, 2013 3:28am Nov 28, 2013 3:28am

diceman555
Joined Jun 2009 | Status: Trader | 5,558 Posts

I think this thread is as close to my trading style ive seen.although I have my own perspective of levels I use.i hope theres more participation in this thread as its imho a positive way to becoming consistently profitable.as already mentioned in previous post regarding longer term levels and entering on 1 min time frames can be very rewarding . especially if you have the patience to wait for key levels.

#586
Nov 28, 2013 10:30am Nov 28, 2013 10:30am

S_Ferrer
| Joined Apr 2012 | Status: Trader | 97 Posts

Quoting mongolian

Disliked

I've liked this thread from the beginning. I do think however that the 12 pip TP and the 24 pip SL is backwards, at least for me. What I have noticed is that price moves naturally @ the whole numbers, the .50 levels, the .25 levels and also @ 12.5 pip levels.

Ignored

Cheers, that's an interesting post - and chart.

The SL/TP levels for Findus & Sam never really seemed to make much sense, but seemed to work for them. Over his sample, he was well up.

I can see how price is reacting to those numbered levels on your chart, both from a S/R & S/D perspective.

@Diceman - you look for levels on the H1 perspective and enter on the M1? Is 2 touches support/resistance? It seems the more levels are touched, the weaker they become. What "Confluence" are you looking for?

@M.A.C.Doug - Indeed, some confluence of factors around potential entry levels looks ideal. Looking at the way Findus posted, his system was very visual - just taking advantage of the levels that presented at that time.

There is an edge to this stuff. The OP and Sam0182 used to use pending orders it seems, and just let the market shoot into profit or take them out, depends on whether you can be at the charts to monitor PA.

I'd like to participate more in this thread also, glad some others are around to maybe get involved as well.

#587
Edited 11:02am Nov 28, 2013 10:48am | Edited 11:02am

S_Ferrer
| Joined Apr 2012 | Status: Trader | 97 Posts

EURGBP as an example:

Looking at the zone on the H4 - the level at .83591 hasn't been tested - potentially it's good for a short:

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Down on the M15, we can see other levels come into play - perhaps not as strong (marked in white).

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For those playing this one shorter TFs. Looking primarily for "first time back" type trades. The smaller levels which don't feature on H4 are tradeable right?

#588
Nov 28, 2013 1:14pm Nov 28, 2013 1:14pm

diceman555
Joined Jun 2009 | Status: Trader | 5,558 Posts

Quoting S_Ferrer

Disliked

{quote} Cheers, that's an interesting post - and chart. The SL/TP levels for Findus & Sam never really seemed to make much sense, but seemed to work for them. Over his sample, he was well up. I can see how price is reacting to those numbered levels on your chart, both from a S/R & S/D perspective. @Diceman - you look for levels on the H1 perspective and enter on the M1? Is 2 touches support/resistance? It seems the more levels are touched, the weaker they become. What "Confluence" are you looking for? @M.A.C.Doug - Indeed, some confluence of factors...

Ignored

The convergence im referring to is when higher timeframe averages and there extreme level or extensions being a better words
Converge.when the lower time frames also start to converge to those points you can be quite sure the supply and demand is very high.for a better word the gap from the converged level to the next level of interest will fil quickly as price searches liquidity and new interest.The bias is were things can go wrong .its not set in stone that price will bounce.the immediate sentiment must be established.this can be found by looking at the overall flows comming into the market .stall points across the market can help determine this.
Here's some examples from my jounal traded live.not posted because of positive outcome but good examples of trading supply and demand using static levels and evolving levels that converge to create extremly powerfull areas of interest.

#589
Edited 2:34am Nov 29, 2013 2:23am | Edited 2:34am

M.A.C.Doug
Joined Jul 2007 | Status: Trader | 1,685 Posts

Quoting S_Ferrer

Disliked

{quote} M.A.C.Doug - Indeed, some confluence of factors around potential entry levels looks ideal. Looking at the way Findus posted, his system was very visual - just taking advantage of the levels that presented at that time.

Ignored

Yes I do this also, Often I have not even drawn a line, I am using the bid/ask line and waiting for it to touch previous swing high/low levels

Here is my last two trades which were entered exactly this way.The first trade took less than a minute to hand me twice my risk and suffered no drawdown - a perfect bounce. The second trade was not ideal as I didn't wait for price to touch the support line. Price had failed two attempts at reaching the exact level. On the third attempt, I entered early and nearly got stopped out

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#590
Feb 11, 2014 10:28pm Feb 11, 2014 10:28pm

sam0182
Joined Mar 2008 | Status: Trader | 1,462 Posts

For old time sake, EU levels on deck tonight.

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#591
Feb 12, 2014 12:55am Feb 12, 2014 12:55am

hardworker
| Joined Feb 2014 | Status: Trader | 11 Posts

I do something like this, though with small SLs and primarily in equidistant channels. Does anyone else scalp like that? Is there a thread dedicated more to my style than this one?

#592
Mar 25, 2014 9:34am Mar 25, 2014 9:34am