I am using a method that is called PRICE ACTION.
That is trading without indicators.
No i am learning to use it. But am I doing it right ?
Color orange = trendline
Color red= support and resistance
My suggestion for trendlines is to use trend channels. To draw a trend channel for a down trend, for example, intersect two swing highs with a line and then draw a parallel line that intersects the intervening low.
Hi,
I think that I have made a discovery a minute ago.
Look to this picture below, every 2 centimeters there is a invisible s + r
there are 3 options:
1= if the candle surpasses the invisible s + r and the bigger part of then it depends on on what side the bigger part of the candle is.
2= if the candle is in the invisible s + r but a new next candle is further.
3= a reverse candle comes and reverses at the invisible s + r
is this a good theory or crap hahahah
the invisible s + r is there in the past and future. !!!
If you noticed, you have drawn your S/R levels around round numbers. That is not a mistake, psychological levels are very powerful in Forex. You will see price respecting .0000, .00x0, .0033, .0066, etc fairly often. Add pivots and if a pivot falls on or near one of those levels, it will be an incredible S/R level.
Do you have msn messenger ?
Unfortunately, I do not.
I want to ask you something.
I am using PRICE ACTION and no indicators.
My steps are:
1= check the direction of the trend.
2= check the support & resistance.
3= check if there is a reverse pattern at the trend or at the s + r.
The problem is that there is not one a beautiful trend.
The waves are nog equil some are bigger then others.
I know that it is a uptrend but i can’t draw a trendline.
Because the waves or higher highs or however you wanne call them are not the same size. some are extremely small some are bigger etc…
and the s + r there are a lot of s+r which one are the ones i need to use.
a lot of times i get every centimeter a s+r.
then it is mad man work. which one are the ones i need to look at i ask myself then…
do you see my dilemmas hahahahah…
yeah, that’s pretty good man. on the first picture you want your trendline to be a bit closer to the price for sake of clarity.
to who are you talking and what is good ?
That is the subjective aspect of Forex. You will never know where price will go but you do know that price will go somewhere. As a corollary, you will never know if price will respect or break a certain S/R level. Confluence of the various methods of establishing S/R will put the odds in your favor, but it will never be 100%.
Based on your chart, anyway, it appears that price was first ranging (accumulation phase), and it had just broken the upper resistance line probably to be marked up. A range is typically not thought of as a trend since it’s zero-slope.
In any case, the struggle you have with reading charts is one that probably everyone has had (assuming they’re a PA trader). There is no easy one-size-fits-all answer and, ultimately, everyone will come to different conclusions.
This text solfed the s+r dilemma for me. it was like the thunder hit me !
thanx everybody !
Do you have another thunderbolt for me for the trendline dilemma ahhahah.
I don’t know the exact places to place them.
the trend is just like a human population, some are fat some ar thin, some are long some are short.
how do i draw trend lines with that kind of chaos ?
below is a support and resistance how you told me:
