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Support and Resistance Method - Pharley

  • #401
  • Aug 17, 2015 5:02am Aug 17, 2015 5:02am
Quoting happytrade38
Saw a good setup in GBPUSD - H4 with pin bar. Not sure it's a good setup. {image}
Hi Happy,

Thanks mate - well, if I start a thread about how I trade, I'd better be around to post on it and answer questions!

I took a quick look at the GU - see chart below. It's currently in between a channel, and also near a resistance off the weekly. Things aren't moving too much on many charts at the moment, so it's one of those situation where I don't trade. I try and wait for clear signals - if you look at the chart, there's no set direction. Sure on the 4hr chart it may drop to channel support again, but at the moment I won't trade it until it does, or shows definite signs of moving up over resistance.

Hope that helps
Cheers
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd day.PNG Size: 39 KB
  • #402
  • Aug 17, 2015 5:05am Aug 17, 2015 5:05am
Quoting pharley
{quote} Hi Gdi, Got my TP just under 144 - but anything can happen!
Hi pharley

Just picking your brains as to why your TP on EJ is around 144, seems a little way down from the 90%! Or do you see some resistance around there?

Cheers
  • #403
  • Aug 17, 2015 5:09am Aug 17, 2015 5:09am
Hey Happy - just looking at the 4hr, if price can get above that resistance and stay above it, look for a retrace back to the same area (now it's support) and look for it moving upwards again for a good trade up to the major channel resistance.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd 4hr.PNG Size: 41 KB
  • #404
  • Aug 17, 2015 5:11am Aug 17, 2015 5:11am
Quoting rover99x
{quote} Hi pharley Just picking your brains as to why your TP on EJ is around 144, seems a little way down from the 90%! Or do you see some resistance around there? Cheers
Hi Rover,

Yes I've taken something way off to the left from the weekly - see pic of the weekly chart.
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpy week.PNG Size: 50 KB
  • #405
  • Aug 17, 2015 5:16am Aug 17, 2015 5:16am
Hey Happy - I was just going to say, the reason I'm preferring a long rather than a short on the GBPUSD at the moment, is that on the daily and weekly chart, you can see the price is in a rising channel, and I prefer not to go against a trend.

CHeers
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd day.PNG Size: 29 KB
  • #406
  • Aug 17, 2015 5:19am Aug 17, 2015 5:19am
Quoting pharley
{quote} Hi Rover, Yes I've taken something way off to the left from the weekly - see pic of the weekly chart. {image}
Yep got it, ta mate.
We're experiencing real August trading conditions currently with daily ranges taking a bit of a nose dive.

Your thread's hot hot hot on FF's home page btw!

Cheers
  • #407
  • Aug 17, 2015 5:28am Aug 17, 2015 5:28am
Quoting rover99x
{quote} Yep got ta mate. We're experiencing real August trading conditions currently with daily ranges taking a bit of a nose dive. Your thread's hot hot hot on FF's home page btw! Cheers
Hi Rover - an important point I was just thinking about is that we're all trying to learn how to trade and read the charts. A really important part of that is knowing when NOT to trade. There are many times I've traded in the past only to go on and regret it. It's a bit difficult to fully explain what to look for, but if I don't see an obvious set up, an obvious trend, channel - and you start seeing mainly sideways movement, it's just best not to trade anything. Far less risky - wait for the terrific set ups.

Deciding not to trade is also a valid position you can take. It's why I mentioned a while ago about taking a screen shot of your perfect set ups - retracements, cracking pin bars at S/R, channels etc and keeping those to refer to. I constantly go back to my library of great set ups to reinforce what I'm looking for. I used to chase the market for trades, but having been burned, and burned, and again!, now I wait and wait some more.

Hot on FF? Ah well, hopefully it's of use and we can all learn something. I'm learning all the time, and posting trades keeps me honest as well.

Cheers
  • #408
  • Aug 17, 2015 5:45am Aug 17, 2015 5:45am
Quoting pharley
{quote} Hi Rover - an important point I was just thinking about is that we're all trying to learn how to trade and read the charts. A really important part of that is knowing when NOT to trade. There are many times I've traded in the past only to go on and regret it. It's a bit difficult to fully explain what to look for, but if I don't see an obvious set up, an obvious trend, channel - and you start seeing mainly sideways movement, it's just best not to trade anything. Far less risky - wait for the terrific set ups. Deciding not to trade is also...

'taking a screen shot of your perfect set ups - retracements, cracking pin bars at S/R, channels etc and keeping those to refer to'

​That's a good idea, I already keep a trading diary of trades entered and not entered together with my thoughts, adding a screen shot will enhance that. It's surprising how you forget a few months down the road why you took that particular trade. And as I'm ancient memory is not what it once was!!
  • #409
  • Aug 17, 2015 5:54am Aug 17, 2015 5:54am
Quoting rover99x
{quote} 'taking a screen shot of your perfect set ups - retracements, cracking pin bars at S/R, channels etc and keeping those to refer to' ​That's a good idea, I already keep a trading diary of trades entered and not entered together with my thoughts, adding a screen shot will enhance that. It's surprising how you forget a few months down the road why you took that particular trade. And as I'm ancient memory is not what it once was!!
I hear you mate! In the same boat. Have a look through some charts in the downtime and spot terrific set ups. Make a copy with some notes of them and keep them handy - these are the ones you want to trade.

As well as those, take a few shots of charts that you don't want to trade - consolidations and sideways movements. Refer to those often as well. It's all part of training your eyes to see these things as they appear on charts.

Cheers
  • #410
  • Aug 17, 2015 6:01am Aug 17, 2015 6:01am
Quoting pharley
Hey Happy - I was just going to say, the reason I'm preferring a long rather than a short on the GBPUSD at the moment, is that on the daily and weekly chart, you can see the price is in a rising channel, and I prefer not to go against a trend. CHeers {image}
Thanks pharley for the advice. Will see how it goes.
  • #411
  • Aug 17, 2015 7:05am Aug 17, 2015 7:05am
Hi Pharley, Please review my setup.
Attached Image (click to enlarge)
Click to Enlarge Name: EURJPYH4.png Size: 38 KB
  • #412
  • Aug 17, 2015 8:18am Aug 17, 2015 8:18am
Hello Phil,

Thank you very much for your thread. I am primarily a day trader and doing well. Nevertheless, your thread inspired me to start a new sub account to try and learn your strategy.

I realised that the beauty of your methodology is not the number of pips but the growth in the size of positions by keeping the initial risk factor constant (and decreasing) when a trade goes in the right direction. And it enables alpha returns to account equity :-)

On a side note: I read that you are a UK National and OZ citizen.. so just wondering which team you support during Ashes series (of course, if you follow Cricket)!

cheers,
Johny
  • #413
  • Aug 17, 2015 9:28am Aug 17, 2015 9:28am
Quoting pharley
Now the boring bit: Been trading for about 8 years. Initially shares/stocks, then CFDs, then forex. Always used market makers - now I've dumped them and gone to ECN. Always used to trade 1m, 5m, 15m charts with MACD, stochs, RSI etc. Dumped them and went with price action, no indicators, just SR. My approach is based on support and resistance being THE most important thing on the charts. Equally as important is risk mgt. It works for me and may be useful to some others. I know PA traders are probably doing all this stuff already. For me it's a no...
====================================================
Hi Pharley,
I'm about to begin studying your thread, drawn by simplicity and clarity of your explanations.
Thanks for your godly will to share!
Are you saying that by using this method you are able to earn enough to support your family?
God bless you and yours!
  • #414
  • Aug 17, 2015 10:21am Aug 17, 2015 10:21am
Subs cribed
Truth hurts sometimes don't it
  • #415
  • Aug 17, 2015 1:15pm Aug 17, 2015 1:15pm
Pharley ok i can understand the support and resistance you draw and i learn it from the first article you linked to. What about supply and demand you also linked to an article about that, i read it some times but i dont understand it, can you please explain more about this and how you use it, or if someone else get it please explain ?

Best regards and thanks.
  • #416
  • Aug 17, 2015 5:21pm Aug 17, 2015 5:21pm
Quoting ffhung
Hi Pharley, Please review my setup. {image}
HI ffhung,

That looks ok mate. Got the 50% retrace entry ok and it's moving down. Hope it works out - what's the risk reward like? Is that about 1:2?

Cheers
  • #417
  • Aug 17, 2015 5:22pm Aug 17, 2015 5:22pm
Quoting johny1
Hello Phil, Thank you very much for your thread. I am primarily a day trader and doing well. Nevertheless, your thread inspired me to start a new sub account to try and learn your strategy. I realised that the beauty of your methodology is not the number of pips but the growth in the size of positions by keeping the initial risk factor constant (and decreasing) when a trade goes in the right direction. And it enables alpha returns to account equity :-) On a side note: I read that you are a UK National and OZ citizen.. so just wondering which team...
Ah, I have to go for the Aussies!

If you can take something from this method and utilise it in how you trade, that's great!
Cheers
  • #418
  • Aug 17, 2015 5:25pm Aug 17, 2015 5:25pm
Quoting scardi
{quote} ==================================================== Hi Pharley, I'm about to begin studying your thread, drawn by simplicity and clarity of your explanations. Thanks for your godly will to share! Are you saying that by using this method you are able to earn enough to support your family? God bless you and yours!
Hi Scardi - I'm getting there! At the moment I sort of choose when I want to work (think add more to the trading pot), but it normally lines up with visa requirements and trips back to Australia to see my folks. Trading allows me to live with the wife and kids for extended periods, but when I have to sort visas out, I normally pick up a short contract.

Plan is to get just a few more of these longer runs then just do trading full time - nearly there!

Cheers
  • #419
  • Aug 17, 2015 5:35pm Aug 17, 2015 5:35pm
Quoting jgadefelth
Pharley ok i can understand the support and resistance you draw and i learn it from the first article you linked to. What about supply and demand you also linked to an article about that, i read it some times but i dont understand it, can you please explain more about this and how you use it, or if someone else get it please explain ? Best regards and thanks.
Hi jgadefelth,

When I'm looking at charts I'm aware of key supply and demand areas. If you're looking at weekly or daily charts, you will be too although you may not be aware of it. A run upwards in price which then weakens and then reverses is a supply area. We draw a resistance line, but it's really an area in which supply outstrips demand (sellers out number buyers), so the price drops.

It's at those key areas that supply demand traders expect price to retrace from if it gets up there again. On my side, I'm aware of those areas, and look to draw my resistance line somewhere in that area, either as a horizontal resistance line or a line joining 2 or more tops, where I'm expecting price will bounce away from if it gets there again. That's how people trade with trend line trading (see Myronn's original thread http://forex-strategies-revealed.com...ading-strategy

and there are quite a few thread on here that emulate this way of trading. They're all valid ways to trade of S/R and supply demand areas. Just keep things simple - complexity isn't required. Manage your risk, don't over leverage. Practise it and get better at spotting set ups.

Cheers
  • #420
  • Aug 17, 2015 5:39pm Aug 17, 2015 5:39pm
Update on eurjpy after price moved down before moving up again, I tightened my stop loss, which was eventually taken out.

That's fine - although I'd rather get a win, a small loss of only 2.6% I happy to take. Important thing to note - never increase your stop so that you'll take more loss. If you're going to move it, tighten it up so you take a reduced loss.

At the moment I'm not in any trades - nothing is attracting my eye on the charts, so I'm happy leaving it for now. I'll keep my eyes on things though and will be reading around the forex subject learning more about shorter term channel trading.

Cheers
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