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Golden Levels: EUR/USD

  • #1
  • First Post: Edited Jun 25, 2016 4:27pm Jun 19, 2016 7:30pm | Edited Jun 25, 2016 4:27pm
Golden Levels: EUR/USD

This is thread is for posting golden level chart setups for EUR/USD only.

You can find out more about how to trade the method here:

>> Before posting charts: Learn More About Trading Forex Golden Levels


Why trade from golden S/R levels?

1. No need to predict. Predicting what the market will do consistently over time is, time taking, stressful and unnecessary.
2. Faster compounding by trading from the best price levels, with a high R:R (Risk:Reward ratio) and high win % rate.
3. Predictable income stream by closing trades for a reasonable R:R (not too low, not too high) and not relying on trends.
4. Less stress: Since our trading is centered around finding specific price levels to trade from, we wait for the market to come to us, not the other way around.
5. Less monitoring the market: Because we define price level to trade from ahead of time, we can use limit orders and/or price alerts.


What are golden levels?

Golden levels are S/R (support/resistance) levels that are more reliable and better priced than most S/R levels. They are found deep within price ranges and are defined by many highs and lows on multiple time frames. An example:

Attached Image (click to enlarge)
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Another recent example in oil. Note how trading from the highs of the range would have resulted in a loss. Trading from levels that exist deeper in a range and are respected by price from the long and short side are stronger and result in more profit!

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  • #2
  • Edited 4:34am Jun 25, 2016 4:16am | Edited 4:34am
now EURUSD is expected to go down by everybody, so that may not happen immediately, we may see short squeezes along that way.
It finished this 1st day right at daily MA-200 and Murrey-3/8.
I see yearly pivot 1.1130 as a key level here so I will watch PA around this zone closely, now it's broken to down side but we may still see retrace(s)
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  • #3
  • Edited 4:25pm Jun 25, 2016 11:43am | Edited 4:25pm
Quoting factlover
now EURUSD is expected to go down by everybody, so that may not happen immediately, we may see short squeezes along that way. It finished this 1st day right at daily MA-200 and Murrey-3/8. I see yearly pivot 1.1130 as a key level here so I will watch PA around this zone closely, now it's broken to down side but we may still see retrace(s) {image} {image}

Indeed, when the expectation of something happening is too great (or obvious) it usually does not happen immediately (or at all).

The technical damage for longs, however is fairly great. The following chart shows a "heat map" of the top 5 golden levels defined by the greatest number of highs and lows from Jan '15 to Jan '16.

What pops out is that they all exist at the higher edge of the long-term range. That means that price must be supported by a strong fundamental driver in order to push through them. That certainly did not happen this week thanks to the brexit.

Two of the five levels are clustered @ 1.1377 and price has had trouble on more than one occasion getting passed them, despite decent upward momentum in March/April. So for now it looks like we are back the more than year long range.

The indicator will not only reveal tradable levels, but will also be used for long-term analysis to see which ones price is likely to break and what kind of fundamentals would be needed to get through a cluster of golden levels. Looking toward an early next week release.

Q

Attached Image (click to enlarge)
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>> Learn More About Golden Levels
  • #4
  • Jun 26, 2016 5:17am Jun 26, 2016 5:17am
Quoting Quinton
{quote} The following chart shows a "heat map" of the top 5 golden levels defined by the greatest number of highs and lows from Jan '15 to Jan '16.
Very interesting, thanks! How do you count "the greatest number of highs and lows"? i.e. what time frame you used to count them for daily chart, is it daily highs and lows count or it's coming from lower TF?
I understand you mean highs and lows for trending segments so they are extremes - not just highs lows of the days for the given period. Is it correct?
  • #5
  • Jun 26, 2016 10:10am Jun 26, 2016 10:10am
Quoting factlover
{quote} Very interesting, thanks! How do you count "the greatest number of highs and lows"? i.e. what time frame you used to count them for daily chart, is it daily highs and lows count or it's coming from lower TF? I understand you mean highs and lows for trending segments so they are extremes - not just highs lows of the days for the given period. Is it correct?

The levels in the chart above were generated only from daily highs and lows and included all highs and lows within the time range defined by the two vertical lines.
I put the right vertical line back to show that the levels were formed before price made the recent attempt to break them (in other words, the calculation did not include recent PA involving the levels).

All highs and lows are included which makes sense as it includes the price knot near the left vertical line as well as intermediate price extremes. This is where the indicator makes sense as it can be hard to detect them with the naked eye. Also the levels generated from only from the trending segments tend to exist, as you mentioned, at the extremes and are therefore not always the best priced.

Q


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  • #6
  • Edited 7:08pm Jul 3, 2016 6:57pm | Edited 7:08pm
EUR/USD buyers are currently climbing a wall of worry after the Brexit induced drop in the pair (shown by the jagged PA since the drop). This means that they see prices as cheap enough to buy but are at the same time concerned about the future of any long positions. Accordingly these buyers tend to be easily shaken out of their positions causing sharp pullbacks against the current trend when price means some technical head winds. A good confluence of technical factors is coming together for a short @ 1.1234. The golden level is supported by the 61.8 fib level drawn from the short-term high and low spanning the Brexit drop. The H4 200 MAs which lie slightly below this level should slow price momentum as it approaches this zone.


http://www.streamhedge.com/viewchart...-7-4_EURUSD_H4


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  • #7
  • Jul 12, 2016 4:01am Jul 12, 2016 4:01am
Quoting Quinton
EUR/USD buyers are currently climbing a wall of worry after the Brexit induced drop in the pair (shown by the jagged PA since the drop). This means that they see prices as cheap enough to buy but are at the same time concerned about the future of any long positions. Accordingly these buyers tend to be easily shaken out of their positions causing sharp pullbacks against the current trend when price means some technical head winds. A good confluence of technical factors is coming together for a short @ 1.1234. The golden level is supported by the...
Hi Quinton and GL friends, I was and still on vacation, don't have time for often updates, but I monitor levels.
I think we may expect EU pair at those levels only after confirmed break of 1.1130 key level - which I mentioned before. We saw that was not easy so far. And now EU is testing this level again from down side may be confirming it as a major resistance.
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  • #8
  • Aug 3, 2016 8:56am Aug 3, 2016 8:56am
Quoting Quinton
EUR/USD buyers are currently climbing a wall of worry after the Brexit induced drop in the pair (shown by the jagged PA since the drop). This means that they see prices as cheap enough to buy but are at the same time concerned about the future of any long positions. Accordingly these buyers tend to be easily shaken out of their positions causing sharp pullbacks against the current trend when price means some technical head winds. A good confluence of technical factors is coming together for a short @ 1.1234. The golden level is supported by the...

Took an entire month for this level to get hit, but it was a good one. The MAs didn't come in for confluence since it took so long for the touch. However, PA played along nicely with a full, clean 1-5 wave cycle completed as price neared the zone. 50 pips strong and going...


http://www.streamhedge.com/viewchart/NNlsqic/2016-8-3_EURUSD_H4


Q


>> Learn More About Golden Levels
  • #9
  • Aug 4, 2016 3:32am Aug 4, 2016 3:32am
Yup, this one was beautiful but saw it too late.. Level looks very clear with D1 chart, also has trendline touch.
Anyway, great job Quinton!
Where did you put your sl?
  • #10
  • Aug 4, 2016 9:35am Aug 4, 2016 9:35am
Quoting Saruniuz
Yup, this one was beautiful but saw it too late.. Level looks very clear with D1 chart, also has trendline touch. Anyway, great job Quinton! Where did you put your sl?

SL was set @ 1.1254 to account for that mid April price knot and make sure the trade had room to breathe.
The real beauty was the exit for 100 pips+. Got the full move to the next cluster of GLs @ 1.1115. Would have been a great long scalp too with both MAs confluencing. This was a pure 1:5. With winners like this you'd only need a 17% win rate.



http://www.streamhedge.com/viewchart/WzClpqn/2016-8-4_EURUSD_H4



Q


>> Learn More About Golden Levels
  • #11
  • Aug 4, 2016 9:43am Aug 4, 2016 9:43am
Good job!

Risk/Reward ratio was really amazing this time. That's why some traders take only those opportunities which offer 1/5 or more R/R ratio. And those who trade daily weekly charts, need only several good trades a year to make great profit.
One trader I know, owned eu since 2014 October because he got 1/10 Risk Reward ratio. He said he could retire with that trade
  • #12
  • Aug 18, 2016 2:19am Aug 18, 2016 2:19am
Quoting Quinton
{quote} Took an entire month for this level to get hit, but it was a good one. The MAs didn't come in for confluence since it took so long for the touch. However, PA played along nicely with a full, clean 1-5 wave cycle completed as price neared the zone. 50 pips strong and going... http://www.streamhedge.com/viewchart...-8-3_EURUSD_H4 Q >> Learn More About Golden Levels
more confluence with patterns: thanks to Hpt, I see ABCD pattern everywhere now
2 of them were already on this pair from May 2016 and the last one just completed. So I see a possible pullback from this area 1.1330-50 - Fib-61.8 from the last leg down, Murrey level, a possible GL zone
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  • #13
  • Sep 8, 2016 8:39am Sep 8, 2016 8:39am
Quoting factlover
{quote} more confluence with patterns: thanks to Hpt, I see ABCD pattern everywhere now 2 of them were already on this pair from May 2016 and the last one just completed. So I see a possible pullback from this area 1.1330-50 - Fib-61.8 from the last leg down, Murrey level, a possible GL zone {image}
2015 yearly pivot held as support at 1.1130. I see a couple of TLs in the current area around 1.1300 - 1.1320 - we may see retrace from here
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  • #14
  • Sep 10, 2016 4:44am Sep 10, 2016 4:44am
Quoting factlover
{quote} 2015 yearly pivot held as support at 1.1130. I see a couple of TLs in the current area around 1.1300 - 1.1320 - we may see retrace from here {image}
retraced and bounced at 1.1200 round GL level with both H4 200MAs confluence.
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  • #15
  • Last Post: Sep 22, 2016 6:13am Sep 22, 2016 6:13am
magic level 1.1130 (yearly pivot) held one more time and now it bounced at Fib-61.8. Weekly TD is close too - to add more resistance in the current area
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