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Support and Resistance Method - Pharley

  • #321
  • Edited 6:16am Aug 13, 2015 5:54am | Edited 6:16am
Hey Pharley...this is an excellent thread! Well done for starting it mate.

This is the first one I have subscribed to in FF and I couldn't stop from making my first post.

I believe PA on S/R is the simplest strategy and provides great R:R ratio. I think your strategy to enter trade on 50% retrace of Daily candle in 4H chart and more importantly adding trades as it goes in your favour is great and seems to work well. Also, the strategy is great for traders who have a day job as it does not require frequently looking at charts.

I find it very useful and it would help me in establishing the missing link between entering trade and taking good profit.

Looking forward to happy trading....

AA
  • #322
  • Aug 13, 2015 6:29am Aug 13, 2015 6:29am
Quoting aaeran
Hey Pharley...this is an excellent thread! Well done for starting it mate. This is the first one I have subscribed to in FF and I couldn't stop from making my first post. I believe PA on S/R is the simplest strategy and provides great R:R ratio. I think your strategy to enter trade on 50% retrace of Daily candle in 4H chart and more importantly adding trades as it goes in your favour is great and seems to work well. Also, the strategy is great for traders who have a day job as it does not require frequently looking at charts. I find it very useful...
Hi mate - good to have you on board. You say it all in your profile - PA and keep it simple. That's all I try to do - analyse the PA and S/R, enter multiple times and manage the risk. Great news if it can help you get some cracking trades!

Cheers
  • #323
  • Aug 13, 2015 6:33am Aug 13, 2015 6:33am
Keeping my eye on this one:
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  • #324
  • Aug 13, 2015 6:38am Aug 13, 2015 6:38am
For anyone struggling with Fib settings here is a link to quite a handy tool. If I remember correctly I think you need to sign up before you can get it but it doesn't cost you anything. It doesn't come with a 50% level but there is a 48.6 level which is close enough. You can use it to quickly add and delete levels that you don't want etc and change the colour if you want to.

http://tradingarsenal.com/indicators...indicator.html

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Indentify > Plan > Accept > Execute
  • #325
  • Aug 13, 2015 6:43am Aug 13, 2015 6:43am
Quoting wizlon32
For anyone struggling with Fib settings here is a link to quite a handy tool. If I remember correctly I think you need to sign up before you can get it but it doesn't cost you anything. It doesn't come with a 50% level but there is a 48.6 level which is close enough. You can use it to quickly add and delete levels that you don't want etc and change the colour if you want to. http://tradingarsenal.com/indicators...indicator.html {image}
Thanks Wiz - may be useful.
  • #326
  • Aug 13, 2015 7:01am Aug 13, 2015 7:01am
hi Pharley
Are you still Long on EURJPY?
  • #327
  • Aug 13, 2015 7:03am Aug 13, 2015 7:03am
Quoting relaxtrading
hi Pharley Are you still Long on EURJPY?
Yes mate - down about 2 or 3 pips as I write this!
  • #328
  • Aug 13, 2015 7:09am Aug 13, 2015 7:09am
Pharley, do you ever use the 38.2 or 61.8 Fib levels for entries if you get a valid PA signal at that level?
Indentify > Plan > Accept > Execute
  • #329
  • Aug 13, 2015 7:16am Aug 13, 2015 7:16am
Quoting wizlon32
Pharley, do you ever use the 38.2 or 61.8 Fib levels for entries if you get a valid PA signal at that level?
No, I use the 50%. Sometimes it doesn't get to the 50% level, but I don't mind - I'll wait for the next set up to appear, either another retrace or a close on the 4hr above yesterday high.

There was one I did not long ago (I think I posted a pic of it) where price retraced to the 50% level, but I wasn't able to take it - wasn't in front of the screen to see the set up. (I normally set pending orders to get in at that level when I see a retrace happening or even before). So I just waited, and the next 4hr candle closed in the correct direction, but not too far away from what would have been the 50% entry, so I entered at that point.

I had to adjust the lot size to maintain the risk level, but that's fine as long as I DO look after the risk.

But there's nothing to say you couldn't use those levels. I'm just happier using the 50.
  • #330
  • Aug 13, 2015 7:20am Aug 13, 2015 7:20am
Quoting pharley
{quote} Yes mate - down about 2 or 3 pips as I write this!
First supply zone 138 then the important one 137.35, that will be a good place to enter.
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  • #331
  • Aug 13, 2015 7:26am Aug 13, 2015 7:26am
Quoting relaxtrading
{quote} First supply zone 138 then the important one 137.35, that will be a good place to enter. {image}
Yes, I see what you mean. Below is the same but with a weekly resistance turned support I have - that's the reason I entered. Hopefully it will retrace to the breakout point and bounce up. If not, never mind - minimal risk taken.

Oh news is out in 3 or 4 mins.
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  • #332
  • Aug 13, 2015 7:30am Aug 13, 2015 7:30am
Now checking on weekly the bulish structure still valid, even if price decide to go down to 137, .
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  • #333
  • Aug 13, 2015 7:34am Aug 13, 2015 7:34am
Quoting relaxtrading
Now checking on weekly the bulish structure still valid, even if price decide to go down to 137, . {image}
Yes that wedge is interesting. Price is hanging around where I bought. We'll see what happens - anything can of course!

Right, bedtime for me. Thanks to all for contributing and I'll catch you all tomorrow.

Cheers
  • #334
  • Aug 13, 2015 7:39am Aug 13, 2015 7:39am
Quoting relaxtrading
{quote} First supply zone 138 then the important one 137.35, that will be a good place to enter. {image}
Hi Relaxed, can you explain how you are seeing these areas please?
  • #335
  • Aug 13, 2015 7:58am Aug 13, 2015 7:58am
Quoting Prax
{quote} Hi Relaxed, can you explain how you are seeing these areas please?
To be honest I do prefer Supply and demand areas instead of support and resistance, however this thread is base on S and R So I'm not interfering with Pharley's set up.


check this out
http://www.forexfactory.com/showthread.php?t=311095
  • #336
  • Aug 13, 2015 8:42am Aug 13, 2015 8:42am
Quoting relaxtrading
{quote} To be honest I do prefer Supply and demand areas instead of support and resistance, however this thread is base on S and R So I'm not interfering with Pharley's set up. check this out http://www.forexfactory.com/showthread.php?t=311095
Thanks for that - I'll have a good read
  • #337
  • Edited 10:21am Aug 13, 2015 10:10am | Edited 10:21am
Quoting relaxtrading
{quote} To be honest I do prefer Supply and demand areas instead of support and resistance, however this thread is base on S and R So I'm not interfering with Pharley's set up. check this out http://www.forexfactory.com/showthread.php?t=311095
I would just like to add my two pence worth on Supply/Demand and Support/Resistance (that's an excellent pdf file on that thread btw relaxtrading)

I have a trading buddie that very successfully trades SD using futures data, and I believe that on futures it can work well but on spot FX I'm not so sure (just an opinion) therefore try as I might I cannot get his method to work on my trading. So at the end of the day, for me, it's SR using horizontal lines or diagonal trend lines, which is what drew me to pharley's thread in the first place.
Therefore IMHO study both and pick the one that you believe will work for you!
That's why I believe you have to find a trading methodology that suits your personality

BTW EJ's now beginning to move up in the US session

Just as a footnote, my buddie uses volume with his SD trading, now volume on Spot FX is synthetic which is why he uses Futures data where it's real
  • #338
  • Aug 13, 2015 10:41am Aug 13, 2015 10:41am
Quoting TooSlow
{quote} ( 185.06 - 175.42 ) * 0.90 = 8.676 175.42 + 8.67 = 184.09 ?? What am I missing, pharley? Also, do you agree with the S/R levels in this chart? {image}
Can you share your indi?
  • #339
  • Aug 13, 2015 3:06pm Aug 13, 2015 3:06pm
Hi,

The Supply Demand (SD) way of trading is very valid and is very much related to trading with Support Resistance (SR).

When you think about it, trading using SR is virtually the same - we're both spotting areas in the market where supply or demand becomes strong or weak. The main difference seems to be that in SD, those areas are identified and trades taken as price gets to them with SL placed at the other end of the area, or trades taken with confirmation as price moves to the area then away from it.

Using SR we're using these areas to identify a place where we want to watch for price action candles to tell us when to enter, whether it's a pin, engulfing, or a range of candles, the momentum leading up to it etc, and a confirmed move away.

If I were trading SD, I'd still look for PA in the candles at those areas as confirmation - a mixture of the two. But really, not a million miles difference between the two methods. Both relying on studying the charts, looking for areas of strength and weakness.

Relaxtrading and others, if you're finding that SD works for you and you prefer it, that's great! Go for it, and I also encourage others to read up about it. Never stop learning. You'll find a method that works for you and fits in with how you want to trade.

Now back to that pesky eurjpy trade - it's been open for a couple of days now and only moved down then up, currently at about +45 pips. Well, it's either going to go on a run or come back and hit my SL. Patience and discipline not to interfere with it. SL and lot size is at a place where any loss would be minimal, so I'm happy to leave it alone.

Cheers
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  • #340
  • Aug 13, 2015 6:24pm Aug 13, 2015 6:24pm
Hi all,

I am following this thread closely and combining insights from TMS method also that I have been learning. So the indicator on the chart you can ignore safely.

I got into EURJPY trade with 4 positions so far and another limit buy order on the break of swing high. (See pic below) If it doesn't break I still have some pending buy orders on further retracement.

On the Weekly / Daily chart is there a possible AB=CD ?

I see partial PT at 141 but a lot of potential above with next Resistance 150 ?


Best,
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