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Pharley Simple system - Get your levels right for trading S/R

  • #181
  • Jun 7, 2016 1:08am Jun 7, 2016 1:08am
Quoting pharley
{quote} Hi Vlad - just watch out for entering long in to any potential resistance areas. I just had a quick look and could see this (below) on a 4hr chart. Sometimes though, no matter what you do trades don't work out. {image}
Good point, thanks Pharley!
  • #182
  • Jun 7, 2016 1:33am Jun 7, 2016 1:33am
Quoting pharley
{quote} HI mate - yes it looks right. If anyone wants to know more I can start a different thread for that one as I want to keep this one for the method described on page 1. Then eventually I may create a thread to bring everything together! Cheers Pharley
Hi Pharley, I guess it will be very valuable if you will put all together. You said earlier that we always have to consider trend and major S/R areas on daily TF. So it means that you enter on position on H1 only to direction with trend? I saw few pics from you where you entered countertrends position also.

Could you explain it a little bit more?

THank you.
  • #183
  • Jun 7, 2016 2:20am Jun 7, 2016 2:20am
I'm keeping an eye on USD/CAD.
Attached Image (click to enlarge)
Click to Enlarge Name: chart.png Size: 114 KB
  • #184
  • Jun 7, 2016 3:28am Jun 7, 2016 3:28am
[quote=pharley;8965708]Actually - I hope not to confuse things, but thought I'd show a quick pic of a couple of 50% entries. I don't want to go in to too much detail here as this thread is about breakout and retrace back to S/R areas. Think of this as a variation - I use this a lot especially on 4hr charts for continuation trades. If anyone wants further explanation I can post something about it - the pic should give you an idea of what I'm doing. Cheers Pharley {image}[/quote

​Thank You this is excellent especially for inexperienced traders like me and most probably for the experienced one as well. One can only be grateful for that.
  • #185
  • Jun 7, 2016 3:29am Jun 7, 2016 3:29am
Quoting Sajid
My GBPJPY Long entries. Because of the start of Holly month of Ramadan, I was not able to manage time for trading. But this evening I caught this entry. It was straight in profit as whistle. I placed the Pending Long after Yellen was not able to create great impact. Opened two positions, Will close half of the position on the Blue line shown in pic. So i will be automatically on B.E. Brothers, It's not the only thing to see only Support , Resistance. Because Support, Resistance is not a fixed price , Its in fact a zone. Try to investigate where...
Thanks Sajid for sharing your thoughs around your trade and also for giving insides to your approach regarding the round numbers, very interesting, I will consider this in my plannings.
  • #186
  • Jun 7, 2016 3:32am Jun 7, 2016 3:32am
​Not a pair I normally look at, I might change my stance having seen this.
Attached Image (click to enlarge)
Click to Enlarge Name: 07 Jun 2016 - GBPAUD 240 min levels.PNG Size: 92 KB
  • #187
  • Jun 7, 2016 4:18am Jun 7, 2016 4:18am
Quoting Mhons
{quote} Hi Pharley, I guess it will be very valuable if you will put all together. You said earlier that we always have to consider trend and major S/R areas on daily TF. So it means that you enter on position on H1 only to direction with trend? I saw few pics from you where you entered countertrends position also. Could you explain it a little bit more? THank you.
Hi Mhons - yes counter trend trading is a bit tricky. I won't go in to it here - just trying to keep this one for this break and retrace method of getting entries.

It does tie in with other methods I've mentioned on here - but I can't stress enough to learn just one good method and stick with it at first. Master it, get good at it, make money from it. Then look around at something else later.

That goes for 50% retracements as well - do't worry too much about it just now. You can learn it a bit later and add it to your trading tool box.

In a nut shell, when you pull it all together you get this:-

1) Take major S/R areas off weekly and daily charts;
2) Look for PA candles/set ups coming off those major S/R areas to get you in an initial trade with clear SL and target areas for profit;
3) Look for a method of entering continuation trades (this minor S/R break retrace, or 50% retrace, or inside bars etc);
4) Look for a method that maintains minimal risk and works towards zero risk as you enter those multiple trades.

All these concepts are in my first thread and some within this one. Yes indeed - perhaps I need another thread pulling everything together. When I've got time perhaps.

Cheers
Pharley
  • #188
  • Jun 7, 2016 4:21am Jun 7, 2016 4:21am
Quoting Rub
I'm keeping an eye on USD/CAD. {image}
HI Rub,

How did you go with the USDCAD?

There was a slightly earlier trade that could have been had on the 1 hr chart. I can see a retrace on the current PA on a 15 min chart but not the 1 hour.

Cheers
Pharley
  • #189
  • Jun 7, 2016 4:23am Jun 7, 2016 4:23am
Quoting Maddin
{quote} Thanks Sajid for sharing your thoughs around your trade and also for giving insides to your approach regarding the round numbers, very interesting, I will consider this in my plannings.
Yes thanks for that Sajid - it's an interesting approach. I hope you have lots of success with it!
Cheers
Pharley
  • #190
  • Jun 7, 2016 4:25am Jun 7, 2016 4:25am
Quoting JackAntigua
​Not a pair I normally look at, I might change my stance having seen this. {image}
Hi Jack - yes it's a pair I trade as well. As the AUD tends to move well, then so do things like EURAUD and GBPAUD - the bonus being price moves a lot more pips with these pairs that say AUDUSD. For sure you'll find heaps of set ups on these.

Cheers
Pharley
  • #191
  • Jun 7, 2016 4:51am Jun 7, 2016 4:51am
Hi Pharley,

2nd day using your method, :-) happy to share the success with EJ. Set for GU but did not trigger else would have made more pips (demo at this moment but still am glad).
A question i have is, is there a diff where you mark the close or high as S/R?
The way i see it, is that there is a group out there who prefer the close and another who prefers the high and one of these groups win and they takes turn.
So i subjectively use the close or the high depending on the chart at that point, am i right to say that?
Attached Image (click to enlarge)
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  • #192
  • Jun 7, 2016 5:11am Jun 7, 2016 5:11am
Quoting pharley
{quote} HI Rub, How did you go with the USDCAD? There was a slightly earlier trade that could have been had on the 1 hr chart. I can see a retrace on the current PA on a 15 min chart but not the 1 hour. Cheers Pharley

It hasn't triggered yet, got the order in at 1.2795 with a 30 pip stop.
  • #193
  • Jun 7, 2016 5:29am Jun 7, 2016 5:29am
NU pair . 30 pips taken .. im using 21 simple moving average line in 1hr time frame
Attached Image (click to enlarge)
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  • #194
  • Jun 7, 2016 5:37am Jun 7, 2016 5:37am
Quoting FireFries
Hi Pharley, 2nd day using your method, :-) happy to share the success with EJ. Set for GU but did not trigger else would have made more pips (demo at this moment but still am glad). A question i have is, is there a diff where you mark the close or high as S/R? The way i see it, is that there is a group out there who prefer the close and another who prefers the high and one of these groups win and they takes turn. So i subjectively use the close or the high depending on the chart at that point, am i right to say that? {image}
HI Firefires, and well done!

Close or high? Well as nothing is clear cut - quite often it can be the top, other times it can be the close. Many times it's somewhere inbetween. This is something that you either have a hard rule for or leave it for individuals to decide.

On this method I'm using the high, but to be honest I'm looking at price action prior to the candle in question to see if I can get further clues as to where I'll get that SR line in. This is where the concept of an area rather than strict line comes in.

You'll see on the chart you post that the trend is up, but price retraces way past the high of each wave - then clearly it's good to move that entry lower than the high as you're expecting it to go down near the close of the candle. See how price is giving you hints as to how far it will retrace? That doesn't happen every time, but many times it does. It's all about looking at that price action leading up to where you want to trade.

I'd say you did exactly the right thing by lowering your entry point!

This is one of the reason trading is hard - I can't give you a hard rule for where as shown in this very example. But people look for 0 or 1, black or white entries. In truth, it's all shades of grey. The best thing to do is learn to analyse the PA and pick the best looking entries. It's another reason I'm not too keen on EA's - they work with yes/no instead of a nod to discretionary trading where you're using your skill and experience.

Hope that helps and thanks for the question!

Cheers
Pharley
  • #195
  • Jun 7, 2016 5:38am Jun 7, 2016 5:38am
Quoting JackAntigua
​Not a pair I normally look at, I might change my stance having seen this. {image}
Yea man, I am so sad i didn't put a sell limit for that gbpaud move. the worst thing is i have been monitoring that pair because it works so well with the way pharley is showing us. Never thought it would retrace so much during Asia.
  • #196
  • Jun 7, 2016 5:41am Jun 7, 2016 5:41am
Quoting saruhn
{quote} Never thought it would retrace so much during Asia.

???? why donīt you thought that. Rate decision!
(.)(.) think first ...
  • #197
  • Jun 7, 2016 5:42am Jun 7, 2016 5:42am
Quoting Rub
{quote} It hasn't triggered yet, got the order in at 1.2795 with a 30 pip stop.
had a look at it, why are you so sure that you want to make this trade?
(.)(.) think first ...
  • #198
  • Jun 7, 2016 5:43am Jun 7, 2016 5:43am
Quoting us fantasy
NU pair . 30 pips taken .. im using 21 simple moving average line in 1hr time frame {image}
Hi US - terrific! Always nice to take 30 pips. Hey if that 21SMA on the 1hr works for you that's great!

It's always worth noting that any method can be adapted to suit your own style of trading - take the best bits of a method and make it better/different/suitable for you. Don't believe the traders who tell you that you MUST trade like this. That's just BS. If you have a solid method, perhaps incorporating other methods and you tweak it to suit yourself and it works, there is nothing wrong with that!

Keep going mate - doing well!

Cheers
Pharley
  • #199
  • Jun 7, 2016 5:48am Jun 7, 2016 5:48am
Quoting maximumguita
{quote} ???? why dont you thought that. Rate decision!
True, but it didn't move because of the aud news, the GBP was wilding out last night lol.
  • #200
  • Jun 7, 2016 6:06am Jun 7, 2016 6:06am
Hi there Pharley,
very interesting method Im keen to look into it more closely.For now i dont really have time to test it but Im wondering how you doing with it?
Can you provide some stats for Your trades? Im interested in hit rate and avarage win/loss?
Statement from meta trader 4 will provide you with this stats automaticly

users of this method are welcome to provide stats as well
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