Support and Resistance Method - Pharley

Hi - more or less any pairs are ok. The ones you've quoted aren't normally subject to huge moves and tend to behave themselves, so they're fine.

Cheers
PH

For your way of trading maybe the focus should be trending pairs and with a resonable spread ? and what pairs is that ?


Best regards

Huh, I was just thinking of resurrecting this thread, and here we are. Looks to be lots of possibilities after brexit. E.g. NZD/USD. White lines are weekly support/resistance, dotted is daily. Price is sitting about the 50% retracement of that last huge down move and lots of wicks to the upside. Looking left there appears to be minor resistance about where it is now. I personally would put my stop above .73 (last highish), but you could also try above the area marked in red for something more aggressive.

That's my take on it, definitely not advice, as I'm not even profitable on demo yet.

Hi Rub and thanks for your comment. The thread isn't dead - I've another one I'm also working on.

Personally at the moment I'm leaving trading alone for a few days - although SR areas are normally respected by a great many pairs, these are not normal times in the FX area. Although the votes has been cast in favour of a leave for the UK, things are still up in the air with much turmoil. Trade at your own risk and be careful.

Cheers
Pharley

It took me 2 days to read all the posts.Thank you so much for your excellent thread! Also, thanks for taking the time to do all your educational posts - they're extremely helpful. Your way of explaining the charts is phenomenal. Great work Pharley, you are awesome. I have learnt a lot from your posting. Keep it up!

If one manage to get the stop loss to break even is this trade making a possible new trade as if the was the first so same margin as first trade ?

Best regards

For what It's worth I'm currently keeping an eye on AUD/JPY and EUR/NZD. AU is looking like it might come back down, and the EUR/NZD looks like it's found support. Will wait until close of today''s candle and see.

great stuff

Well, I've got a 50% fib limit order in on EUR/NZD, but I'm starting to think it won't get hit.
Also looking at NZD/USD, and maybe AUD/USD. Not seeing anything else at the moment though.

All my entries so far have bombed. Couple at break even, most have been at a loss. If anyone's interested I'm doing a quick and dirty dump of Pharley's posts in this thread to a word document, which I'll upload when I'm done. Going to leave out the fluff if I can, and keep it to posts on how he runs things, and usefull comment.s

currently looking at the aussie, kiwi, usd/chf and eur/nzd, for long, long, long, and short respectively. Maybe long gold if it breaks above my upper trendline.

Thanks for that - hope you get something out of it!

thank you, I have learnt a lot from your posting, i hope you can post more live examples on this thread, i will keep learning, thank you !

Hi Pharley.
Just reading through your support and resistance thread again.
I had forgotten the the price action pdf download by Mandi Medang.
Thanks for sharing this with us
If you ever get the time to set a blog or a website up it would be great.
regards
kev

Hi Kevin,

Thanks for your post. Yes I've been asked a few times to do one and haven't got around to it. At the moment I'm trying to stay away from doing a web blog - I just haven't got too much time currently to give to that. Perhaps in the future.

Been an interesting week! I missed the huge move down on GBPJPY on USA election day - wrong time of the day for me entirely. But I scored huge when it went back up which is great. I hope others got some good trades out of the movement, tricky as it was.

A huge pin bar appeared and I trades that, adding to it a couple of times - pin below. Hope others saw it too.

Besides the pin bar, there was also a nice break and retrace on the 4hr and 1 hr charts on GBPJPY - you can see the area below. These are 2 major things I look for - pin bars and break and retrace. The other major things are 50% retraces, inside bars and 2 bar reversals.

Pharley,
Could you please restate you strategy if it is different from page 1.

Hi Earlroy,

The strategy I posted on page 1 is still valid and I still use it. What I just posted about GBPJPY during some pretty extraordinary circumstances is something a bit different but not that much.

I have a variety of approaches to trading - it's in my trading toolbox. The key things for me I mentioned above and involve support and resistance as does the method on page 1. I can't stress enough how important SR areas are (or supply/demand) ad together with that, candles and patterns. If I'm playing a pin bar, I'm looking for a major SR area where it forms. If I'm trading continuation patterns, I'm looking for inside bars on a trending pair and price is between major support and resistance areas. If I'm looking at 50% retracements (or any retracement), again I'm looking for the retracement to happen between major SR areas and a trending pair.

Hope that helps.
Cheers
Pharley

Hi Pharley.
Thanks for the reply.
The two threads that you have kindly given here on forex factory have been enough.
Thanks again
Regards
Kev

Thanks Pharley.

I am happy to see that you are back after your summer break Pharley. - I discovered this thread sometime in August and was worried that newcomers to this thread might not be able to ask questions from you that we may have in our endeavor to beat the market using your excellent thread. I agree with all those who think that current live trading examples are the best in order to enlighten us to fully comprehend your method. As for me I think this is the very best thread I've ever found on Forex Factory. Please keep up the good work Pharley. - I use your summary when I look for any potential trade setup:

1) Weekly chart, draw major SR levels.
2) Daily chart - wait for price to come to those areas. Look for price action candles - Pin Bars etc.
3) 4 hour chart for entries on 50% retraces, confirmed higher breaks, or retraces back to break points
4) Set SL at logical positions - normally last swing High or Low
5) Move SL up (or down) to the new trade SL point - this locks in profits
6) Target is the same for all trades - Measure the last move between S and R and take 90% as TP
7) Enter multiple times - Each time I get my SL up to the latest trade, I'm locking in profits. Most
importantly my risk is remaining limited.
8) For the very first trade of a move, I only take half of my normal risk - this is because price can
do anything, and it may go against me.
9) Once price moves in my favour I enter at my normal risk level.
10) I stop trading the run when reward to risk gets lower than about 2 to 1.
11) Sometimes I'll enter on continuation candles during the run, e.g. inside bars or pin bars, but I
try and keep it as simple as possible.