My Basic Chart Analysis Method

[MattW2009]

Originally Posted by phil838

Sure thing! Just post a picture here when you're done and I'll have a look at it.

I'm looking at a GBP/JPY chart right now and most of my zones are 80-100 pips with around 300-400 pips between the zones. That's definitely not a rule you have to follow (my largest zone is 160 pips), it's just to give you a frame of reference.

Below is the image of my first attempt at S+R zones on GBP/USD 4H.

My approach to this was to find lows at the ends of trends (rather than just any low of a candle) and then mark the lowest and highest that appeared in a band. I then repeated the process for highs until I had clear bands of stops and reversals.

I aimed to make bands smaller than the spaces in-between them - is this a rational assumption or not necessarily the case?

I also discounted spikes I considered to be news spikes not genuine lows (i.e. 22nd April).

Because I cannot colour bands, note that the low of the bands are purple and the high of the bands is orange (so spaces between orange and upper purple are outside bands).



Matt

[o990l6mh]

Originally Posted by MattW2009

Below is the image of my first attempt at S+R zones on GBP/JPY 4H.

My approach to this was to find lows at the ends of trends (rather than just any low of a candle) and then mark the lowest and highest that appeared in a band. I then repeated the process for highs until I had clear bands of stops and reversals.

I aimed to make bands smaller than the spaces in-between them - is this a rational assumption or not necessarily the case?

I also discounted spikes I considered to be news spikes not genuine lows (i.e. 22nd April).

Because I cannot colour bands, note that the low of the bands are purple and the high of the bans is orange (so spaces between orange and upper purple are outside bands).



Matt

You have to use the button that looks like a postcard of a mountain to insert the image in your post. It's the fifth button from the right.

I did exactly the same thing my first time

edit: well you fixed it before I could post this even!

[MattW2009]

Originally Posted by o990l6mh

You have to use the button that looks like a postcard of a mountain to insert the image in your post. It's the fifth button from the right.

I did exactly the same thing my first time

Haha cheers, got there in the end!

[o990l6mh]

I just had a quick look, but you certainly seem to be on the right track.

[mumpips]

Originally Posted by phil838

I don't. The Sunday breakout trades were already over before I took the reversal.

If the Sunday trades were still going I wouldn't have taken the reversal.

Understood. It's one after another.

[johnnykanoo]

p1 1.4000
p2 1.3925
s/l 1.4200

my first profit target was hit

[s050399b]

Originally Posted by phil838

People keep asking me how I do my chart analysis, and I keep saying I'd have to write a book to explain it all. Well... Here's that book!

Calling it a book may be a bit of a stretch, it's only 12 pages, but I think it's a good entry point into the world of trading "without rules."

I'm happy to answer any questions you have, but I just spent the better part of a Saturday writing this, so at least read the whole thing before you ask! Your question may be answered later in the ebook. Attachment 7865

Holy Grill of attachment 7865 is missing!!

[phil838]

Originally Posted by s050399b

Holy Grill of attachment 7865 is missing!!

I just fixed that. I uploaded a new .pdf to fix some spelling mistakes and the old attachment got stuck in a link somehow...

[phil838]

Originally Posted by MattW2009

Below is the image of my first attempt at S+R zones on GBP/JPY 4H.

My approach to this was to find lows at the ends of trends (rather than just any low of a candle) and then mark the lowest and highest that appeared in a band. I then repeated the process for highs until I had clear bands of stops and reversals.

I aimed to make bands smaller than the spaces in-between them - is this a rational assumption or not necessarily the case?

I also discounted spikes I considered to be news spikes not genuine lows (i.e. 22nd April).

Because I cannot colour bands, note that the low of the bands are purple and the high of the bands is orange (so spaces between orange and upper purple are outside bands).

Matt

Excellent job, Matt! Those are pretty much spot on with my zones.

One thing to note, and something I should have put in the ebook, is that the zones will migrate slightly over time. Whenever you get a bounce that does go slightly higher or lower than your zone (like we just had) you need to redraw your zone to reflect the new bounce. I'd move my top line up to the new high, and then move my bottom line up a bit, dropping the least significant bounce.

Here's is my new GBP/USD chart...

[mumpips]

Originally Posted by phil838

One thing to note, and something I should have put in the ebook, is that the zones will migrate slightly over time. Whenever you get a bounce that does go slightly higher or lower than your zone (like we just had) you need to redraw your zone to reflect the new bounce. I'd move my top line up to the new high, and then move my bottom line up a bit, dropping the least significant bounce.

Hi Phil,

Understand you don't check news for Sunday Breakout strategy but what abt this Phil's strategy?