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Support and Resistance Method - Pharley

  • #181
  • Aug 10, 2015 5:37am Aug 10, 2015 5:37am
Quoting pharley
Thanks for the questions and comments. Also thanks to StevePatt for getting involved as well and helping out. LorraineP - Yes I also used to try and get 20 pips a day using increased lot sizes and too much risk (for me). I wanted a way to gain big pips but not spend hours in front of the charts. After analysing some other peoples results, it seemed obvious to me that the way they gained huge pips was to take a big picture approach and price action with multiple entries. Then spent ages learning how I would go about doing the same. Cheers

Hi Pharley,

Thanks for explaining that, it is becoming clearer to me post by post the trading method. On the EurAud entry did you use daily chart pin bar to start the entry and then 4hr 50percent swing back for entry?

For next entry do price have to move to next level 200 percent level and then retrace to 150 percent for with price signal for entry?

Thankyou again
  • #182
  • Aug 10, 2015 5:45am Aug 10, 2015 5:45am
Quoting Alamhakim
{quote} Hi Pharley, Thanks for explaining that, it is becoming clearer to me post by post the trading method. On the EurAud entry did you use daily chart pin bar to start the entry and then 4hr 50percent swing back for entry? For next entry do price have to move to next level 200 percent level and then retrace to 150 percent for with price signal for entry? Thankyou again
Hi Alamhakim,

I wasn't able to get the retrace from the daily pin up then back to support (away form charts). But then I saw it bounce again from support and took it at the 50% level.

For the next entry - no. I have no idea yet where I will enter. Price will tell me where I will enter - either at a 50% retracement on 4hr charts, or if a 4hr candle closes above yesterday's high. I only pick that second one as it normally (not every time) tells me that a move up has been confirmed. At the moment I won't enter again until a 4hr candle closes above the previously swing high (just before it retraced).

Cheers
  • #183
  • Aug 10, 2015 4:38pm Aug 10, 2015 4:38pm
GBP/JPY W1/D1
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 10th Aug 15 GBP:JPY W1 Chart.png Size: 64 KB
Click to Enlarge Name: 10th Aug 15 GBP:JPY D1 Chart.png Size: 77 KB
  • #184
  • Aug 10, 2015 8:29pm Aug 10, 2015 8:29pm
I've never understood the Fib and still not sure I use it properly.
On the screen below, did I do it right?
And according to this method, is it appropriate to assume that price might drop from the R line?
Please explain me
Attached Image (click to enlarge)
Click to Enlarge Name: eurcad-w1-hf-markets-ltd.png Size: 41 KB
Using the RobotFX EAs for a while https://www.robotfx.org/
  • #185
  • Aug 10, 2015 8:49pm Aug 10, 2015 8:49pm
Quoting wattaman
I've never understood the Fib and still not sure I use it properly. On the screen below, did I do it right? And according to this method, is it appropriate to assume that price might drop from the R line? Please explain me {image}
Hi Wattaman,

Thanks or your question. No, I use the fib differently - note that I only use it as a measuring device.

What I do is this:

1. On a weekly chart, identify and draw in major support and resistance areas;
2. Go down to the daily chart when price nears these areas and look out for interesting PA bars at these major S/R areas - these can be pin bars for example;
3. Then I go down to the 4hr chart to look for entries - this can be playing a daily pin bar, engulfing bars, etc, or look for retracements on the 4hr charts.
4. When I've seen an entry I use the fib as follows:
5. Go back to the weekly chart (or zoomed out daily chart) and measure the last previous run from support to resistance (or resistance to support) - and I take 90% of that run as my target. I use the fib to see where the 90% target will be.

6. My fib also has a 50% retrace level on it - this is what I use to measure where the 50% retrace level is, so I can place pending orders at that level.

So basically I use the fib to measure the last big run on weekly (perhaps daily) charts between SR areas and identify 90% for targets, and also use it to show 50% retracements on the 4hr charts.

Hope that helps
Cheers
  • #186
  • Aug 10, 2015 9:08pm Aug 10, 2015 9:08pm
Quoting pharley
{quote} Hi Wattaman, Thanks or your question. No, I use the fib differently - note that I only use it as a measuring device. What I do is this: 1. On a weekly chart, identify and draw in major support and resistance areas; 2. Go down to the daily chart when price nears these areas and look out for interesting PA bars at these major S/R areas - these can be pin bars for example; 3. Then I go down to the 4hr chart to look for entries - this can be playing a daily pin bar, engulfing bars, etc, or look for retracements on the 4hr charts. 4. When I've...
Thanks for explaining me. I'm afraid I'm a slow learner.
I think I've got it now. The 50% is only for the next trades, to enter the retracements.
Using the RobotFX EAs for a while https://www.robotfx.org/
  • #187
  • Aug 10, 2015 9:11pm Aug 10, 2015 9:11pm
Quoting pharley
{quote} Hi Wattaman, Thanks or your question. No, I use the fib differently - note that I only use it as a measuring device. What I do is this: 1. On a weekly chart, identify and draw in major support and resistance areas; 2. Go down to the daily chart when price nears these areas and look out for interesting PA bars at these major S/R areas - these can be pin bars for example; 3. Then I go down to the 4hr chart to look for entries - this can be playing a daily pin bar, engulfing bars, etc, or look for retracements on the 4hr charts. 4. When I've...
Hi pharley,

Thank you for taking the time to do another summary of your method.

I've picked a few really nice pointers from your thread and will definitely be applying them to my trading style which I'm currently journaling
away in my little space here on FF.

I take my key signals from the daily chart and have been entering on the hourly timeframe, but a bit like yourself (wife, 1 child and 2 fat lazy dogs) it is
much more balanced if I move back to the 4 hour timeframe for entries, stops and targets.

Please keep your posts coming as I for one am learning a great deal.
Healthy, Wealthy & Steady!!
  • #188
  • Aug 10, 2015 9:14pm Aug 10, 2015 9:14pm
Quoting wattaman
{quote} Thanks for explaining me. I'm afraid I'm a slow learner. I think I've got it now. The 50% is only for the next trades, to enter the retracements.
HI Wattaman,

You're welcome.

Note that I use 2 main types of entry - one is the 50% retracement and the other is when a 4hr candle closes above (or below) yesterday's high (or low).

Having said that, you would do well just trading retracements - either back to the 50% level, or back to minor support (or resistance) breakout.

CHeers
  • #189
  • Aug 10, 2015 9:22pm Aug 10, 2015 9:22pm
Quoting SunnyFx2002
{quote} Hi pharley, Thank you for taking the time to do another summary of your method. I've picked a few really nice pointers from your thread and will definitely be applying them to my trading style which I'm currently journaling away in my little space here on FF. I take my key signals from the daily chart and have been entering on the hourly timeframe, but a bit like yourself (wife, 1 child and 2 fat lazy dogs) it is much more balanced if I move back to the 4 hour timeframe for entries, stops and targets. Please keep your posts coming as I for...
Hi Sunny,
You're welcome mate - glad I'm not the only one with all those types of interruptions! Yes one of the reasons I started looking at the larger timeframes was to get away from the charts all the time, and to spend more time with the wife and kids. I've had too many dramas in the past watching 15m charts and the kids want to go do something or the wife wants something, or the dog wants feeding/walking etc.

Yes I think this method works on many timeframes - daily and 1 hour or probably even 15m trades. One of the real keys is to recognise S/R areas, whether that's fro horizontal lines or channels for example. If you can do that (and that needs screen time to get experience), then you're half way there. Then just look for your setups, and manage the risk and multiple entries as you go.

I see the euraud is finally on the move upwards which is great after my entry. Now I'll concentrate on this pair looking for other entries. When I enter a further trade I'll post the entry. It all depends on price action - I'm waiting for that retrace or a break, where I can bring up the SL from the first trade to at least be BE and zero risk.

I'm also in on another trade that I'm watching carefully - not a great entry, but what that means is I have to watch my risk levels closely - I never risk more than I'm happy to lose. So I have to watch my total risk across all trades.

For the euraud trade, I entered at a 3% risk, and further trades will be for a total risk of 6%, so if it's goes to my target area that will be a tidy return. Still, it can always turn around and go against me, so Risk Mgt is the key now.

Cheers
  • #190
  • Aug 10, 2015 9:24pm Aug 10, 2015 9:24pm
Quoting pharley
{quote} HI Wattaman, You're welcome. Note that I use 2 main types of entry - one is the 50% retracement and the other is when a 4hr candle closes above (or below) yesterday's high (or low). Having said that, you would do well just trading retracements - either back to the 50% level, or back to minor support (or resistance) breakout. CHeers
Got it. Thanks a lot.
Cheers.
Using the RobotFX EAs for a while https://www.robotfx.org/
  • #191
  • Aug 10, 2015 10:42pm Aug 10, 2015 10:42pm
Just thought I'd post a quick update.

I've moved SL from it's original position to BE plus a few pips as price has moved 176 pips in my favour. I've placed a limit order to buy at 50% of the last big 4hr move up. But what I'm interested in currently is price is at a minor S/R area. Ideally I want to see price break through the resistance, then come back to test it, which would be a good entry.
Attached Image (click to enlarge)
Click to Enlarge Name: euraud 4hr @ minor resistance.PNG Size: 54 KB
  • #192
  • Aug 11, 2015 12:43am Aug 11, 2015 12:43am
Quoting pharley
Just thought I'd post a quick update. I've moved SL from it's original position to BE plus a few pips as price has moved 176 pips in my favour. I've placed a limit order to buy at 50% of the last big 4hr move up. But what I'm interested in currently is price is at a minor S/R area. Ideally I want to see price break through the resistance, then come back to test it, which would be a good entry. {image}
Why you know it uptrend to place buy limit. It heavy sell on this pair base on a few day
  • #193
  • Aug 11, 2015 1:37am Aug 11, 2015 1:37am
Hi all,

I entered my second trade on the close of the 4hr candle. SL on T1 is moved up and is now at the same position (nearly) as T2 trade and has locked in profit.
Attached Image (click to enlarge)
Click to Enlarge Name: T2 euraud 20150811 4hr entry.PNG Size: 50 KB
  • #194
  • Aug 11, 2015 1:39am Aug 11, 2015 1:39am
Quoting love.l0ve
{quote} Why you know it uptrend to place buy limit. It heavy sell on this pair base on a few day
Hi Love,

No one knows where price will go and what will happen. However, looking at the zoomed out 4hr chart below you can see the structure and a rising channel.Price had come down to support which is where I look for entries - looking for it to rise again to near the top of the channel.
Attached Image (click to enlarge)
Click to Enlarge Name: euraud zoom out structure 4hr.PNG Size: 51 KB
  • #195
  • Aug 11, 2015 1:40am Aug 11, 2015 1:40am
Quoting pharley
Just thought I'd post a quick update. I've moved SL from it's original position to BE plus a few pips as price has moved 176 pips in my favour. I've placed a limit order to buy at 50% of the last big 4hr move up. But what I'm interested in currently is price is at a minor S/R area. Ideally I want to see price break through the resistance, then come back to test it, which would be a good entry. {image}
Hi pharley

Thanks for taking the time to post an update on this EUR/AUD trade, it's great to see how you manage the trade real time
  • #196
  • Aug 11, 2015 1:42am Aug 11, 2015 1:42am
Quoting stevepatt
GBP/JPY W1/D1 {image} {image}
Hi stevepatt

Thanks for posting these areas, helps me a lot
  • #197
  • Aug 11, 2015 1:52am Aug 11, 2015 1:52am
Quoting rover99x
{quote} Hi pharley Thanks for taking the time to post an update on this EUR/AUD trade, it's great to see how you manage the trade real time
Hi Rover,

No probs - I was a bit late getting the pic uploaded - got sidetracked with something. Anyway, we'll see how it progresses. I can certainly watch the current candle closing (7pm for me) but the one after I might be in bed (11pm) - I'll see how I'm feeling!

One of the things I used to be scared of was pulling the trigger. I suspect all of us are at some time in our early trading career. Now it honestly doesn't bother me - I've made T1 safe (actually locked in some profit), and now have exposure only to T2 at my predetermined risk level. It just makes trading so much less stressful!

Cheers
  • #198
  • Aug 11, 2015 2:15am Aug 11, 2015 2:15am
Here is my effort on the GBPNZD that I posted yesterday. It hasn't quite worked out 100% as I missed the 1st retrace but I'm hoping to get a 2nd entry if price comes back down to retest the trend line. Really happy with this method though - thanks Pharley.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 11 KB
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 13 KB
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot3.png Size: 17 KB
Indentify > Plan > Accept > Execute
  • #199
  • Aug 11, 2015 2:28am Aug 11, 2015 2:28am
Quoting wizlon32
Here is my effort on the GBPNZD that I posted yesterday. It hasn't quite worked out 100% as I missed the 1st retrace but I'm hoping to get a 2nd entry if price comes back down to retest the trend line. Really happy with this method though - thanks Pharley.{image}{image}{image}
Looking good Wiz - fingers crossed for all of us!
  • #200
  • Aug 11, 2015 2:40am Aug 11, 2015 2:40am
Just a quick note about the amount of time taken to set these trades up and timeframes. I know many people new to trading forex like to trade the 15m, 5m or lower charts. It's fun and exciting! I used to be one of them. It doesn't take too long to set up your charts, but there is still much to do trading off the weekly, daily and 4hr timeframes.

Sure I may have to wait a few days or so to get some good set ups, but when you're looking at even (for example) 5 or 6 pairs, there is always something to do. Plus you'll find the longer timeframes much more reliable as it's what the majority of large traders trade from. We're basically following the big money.

So it's not boring - just the opposite - it's terrific to see price go in your favour of course, but then there's all the planning further entries and the risk mgt side of things. Plenty to do and it's great experience seeing and drawing the larger major S/R areas.

Glad it's of use to some of the other traders on here.

Good luck all.
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