Ok .. also from reading the early posts, I think I am getting what you do .. basically just draw trendlines and s/r lines on the 4 hour, then when a trend develops you go to lower timeframes, 60 and 15 min to decide entries based on s/r lines drawn there.
We don’t utilize trendlines 4Xstar. We prefer to observe & act upon the natural oscillation of price which prints it’s (swing) high-low behaviour above/below, on & around our support & resistance (supply-demand) zones.
Yes, the 4 hour graph is my primary template timeframe. I’ll plot the majority of my s&r zones from that graph reference. Jocelyn’s favored template is the 1 hour timeframe, which a couple of our colleagues also reference, so we tend to confer regularly on the validity of specific zones & levels throughout the trading week.
When a particular area of interest begins to blip on our radar, we’ll drill down into a smaller timeframe if necessary to get a better view of the level & see if one of our favored triggers can get us aboard at a value (risk compatible) price.
You also pay attention to news that might influence direction, right?
Absolutely, yes. We’re always aware of what’s printing & when. It might not have a direct bearing on our positions, especially if we’re already onboard & the trade is bedded in – but we certainly won’t look to execute any fresh positions in front of an important economic release.
In this case, you would look at the last sh which is the same on the 4h and 60 min .. 1.9536, so price needs to retrace and establish another sh that is lower than that one .. and this needs to happen on the 4 hour? Or can it be 1 hour, or is it discretionary?
Yes, staying with the current GBPUSD example, the last swing high on both those timeframes is situated at 1.9536. That level would need to be successfully breached & consolidated before we’d consider fully relinquishing our short positions. Ideally I’d prefer to see the next level up at c1.9570 threatened before cashing in our hand.
To initiate another add-in short, then I’d obviously like to witness a reaction failure move back toward 1.9536, yes. Eventually as price begins to wash-out one of these add-ins will fail. That will be the 1st potential warning sign to pay att’n to the behaviour as it maybe begins attempting to base or switch directional bias.
Again, regards the differing timeframes for judging the importance of s&r zones? It’s down to a sharing of views & idea’s. But basically, we’re quite disciplined as to what constitutes a potential change in bias.
Do you want to see a min fib retracement before establishing a lower sh?
We don’t consult Fibonacci analysis or Eliott Wave or Pivots or any other math based configuration. Only horizontal area’s of previous activity (s&r) and supply-demand levels which have influenced the most recent price activity.
And for s/r levels do you use weekly, daily, monthly s/r levels as well or only draw your own?
I use the most recent active zones plotted from the 4 hour template timeframe. The zones & levels plotted on the 4 hour will then automatically be transported down so they show up on all of the lower timeframes as price comes into focus.
Jos & our other colleagues use 60min down to 5 & 15min references dependant upon whichever strategy or model they’re running at the time.
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