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

Hi Pharley.
Thanks for your graphs with explanations.
In your GBP/AUD (1hr graph) It shows the first trade as a sell trade. I can see how you got your minor support, but a bit confused with the sma 50 being in a steep upwards slope, and price is above it.

The second trade also a sell I think I understand it as price at minor support, price below the sma 50 and sloping down, price breaks through support and sell on the retest.

not sure about the third trade which is a buy. price is below the sma and pointing down, the bar before the buy trade opened below, but closed above minor support. Was the buy trade taken at the bottom of the bar where the arrow is or was a buy placed above the support line as the bar opened above support but closed below ?

The fourth, fifth, and sixth trades are all buy. The sma 50 is pointing up, price is above. The buy arrows are all under minor resistance which would be the wicks on a candle chart. Do we wait for price to move above the resistance line before placing a buy or a pending order?

Seventh and eighth trade both buy trades with the sma 50 pointing up and price above, also resistance has turned to support. Would you buy just above the price where the seventh buy trade opened or where the arrow shows ? Same question for the eighth bar but this one opened higher than the seventh buy trade and lower than the previous bar.

The ninth trade opened just above minor resistance would we buy this there or give it time to see if minor resistance turns to support.

Sorry about all the questions, I don't know how to post charts yet but I will have a go later.

Regards
Kevin

How do you define FLIP TRADES?

Hi Kevin and thanks for your questions.

I also look at Daily and weekly charts and if you look at that timeframe with a 50SMA it shows a different picture to the 4 hr chart of course. Price had previously seen a huge drop thanks to Brexit and had bottomed out and returning upwards. On the daily chart you'll see price reacting to the 50SMA when it reached it, falling for a couple of days. It fell in to an area of support/demand. It resumed an upward trend, crossing the daily sma50 with a strong bull candle.

Yes, it's better to wait until the minor S/R has been crossed and the candle closes above or below it. Then place a limit order at that area, expecting price to return to it. The arrows are only an indication of when/where to place the trade - they're not exact levels of where to buy/sell.

On the 9th trade, if you look closely it closes just above the area, so I can place a limit trade at that point - the next candle dropped price and picked up the trade before going northwards again.

Hope that helps a bit - I try to always look at the bigger picture first on weekly and daily charts, then move to 4 hour - sometimes even lower if I thinkI'm going to get a double bounce off minor/major S/R areas. (that's for another time I think).

Cheers
Pharley

Hi Earlroy - flip trades are where (for example) a support has been established. Price moves back to this support area and moves through it. As we know, once support is broken it becomes resistance. Price will MANY times move back to this point of crossing - hence the flip. It's at this point you enter short or long - perhaps with confirmation. Attached is a quick screen grab of gold daily wiht a couple of flip trade areas shown.

These are very powerful - heaps of them on weekly, daily, 4hr 1hr 30min 15 min 5 min charts - although I prefer the longer timeframes.

Cheers
Pharley

Here's 3 on a 15min GBPNZD chart, then the same pair showing one on the 1hr chart (I've left the writing in from the 15 min chart)
There are tons of these everywhere and every timeframe.

Ok, also look for ranging markets. These are very tradeable - lot's of opporunities, not so much for flip trades, but off the support and resistance area. See attached and look at the pips available. Obviously good on GBPJPY, EURNZD, GBPNZD and other bigger movers, but smaller pip totals can be had.

Yes this is different to straight flip trades, but this is also something I look for. For sure i try to take advantage of a trend, but where there is none (which happens a lot) I try to make the most of a ranging pair.

Some may be wondering how this relates to entering multiple times to build a large account as I discuss in my other thread. It's all related - all to do with S/R areas. The examples I show above are just a technique for entering either as a stand alone trade or for entering multiple times on a good run.

As long as you can spot these levels as they occur, have patience and wait for price to break through and retrace, you can make $ just using these SR areas. I hardly use anything else except a horizontal line, so the charts are kept nice and clean and I find these levels easier to spot.

Hope that helps a bit.

Cheers
Pharley

Hi Pharley.
Thanks for your answers, and more graphs of trading technique, and flip trades.
I think I need a lot more screen time to see and adapt.
Thanks again
Regards
Kevin

Thanks very much for your explanation of flip trades.

Nice article on flip trades - better explained than I can do!

http://www.forexschoolonline.com/tra...om-kill-zones/

Hi Kevin - yes a bit of screen time, but honestly, in no time at all you'll be spotting these!

Thanks Pharley.
I'll read through it later today when I've finished work.
Regards
Kev

Hi Pharley,

Thanks a lot for your explanations and also that you start to comment again after your break. I was following your threat in the beginning, did some wins and some losses and left your strategy after a while. But now this simple approach is attracting me again. It would help me a lot for gaining confidence if you could share some potential entry points on the current day.


Thanks,
Maddin

Hi Maddin,

ok mate, I'll try!

I found Kennith Lee's excellent PDF and thread really helped me understand flip trades, and helped me click with support/resistance or supply/demand. I recommend having a look at them.

Rub , kindly supply link. New in this thread .
Thank you.

http://www.forexfactory.com/showthread.php?t=311095

PDF is on first page.

Hi - here's a couple of recent trades I took on UJ showing entry and exit points. I'm waiting for a retrace for the third trade now - already got the pending order in. Whether it comes back to that point is another thing, but at least I'm ready.

Cheers
Pharley

There were many trades to be had yesterday, especially on JPY pairs. Here's one I missed on GBPNZD which would have worked out well.

Oh, also is a 4hr chart view below

OK, the UJ trade triggered at the right level and is currently in profit. Just have to wait to see how it goes.