Alternative Technical Templates.

[tonymand]

Currently watching this developing scenario

[tonymand]

You can see for yourself just how important this level is over the last 6 months or so. Get ready to rock and roll (well hope so anyway)

[johnnykanoo]

Tony im glad all is well. We all lose once in a while If I know you im sure you cut you loss short. Jocelyn I really am learning everyday and I do like barbaras point of view. I read her book technical analysis for dummies like 2 years ago. Then I came across her again in Currency Trader, then I read an article or two written by her, finally I came across her website rockefeller treasury services. Anyway all is good, as always thanks for your input it is greatly appreciated, John
Rockefeller Treasury Services - Futures FX Trading for Currencies and Foreign Exchange

[tonymand]

........... and similar developing interest here on GY

[Tess]

Originally Posted by Harry Potter

So you guys use candlestick patterns exclusively when price neares an s&r level?

Hi Harry,

Yes, we use price set-ups or triggers on & around our views of the pertinent support-resistance levels.

Price structure is a function of supply & demand, period. Nothing occurs until sufficient supply overwhelmes demand at resistance, or sufficient demand overwhelmes supply at support.

Once that balance rights itself, we're off to the races. Everything else is secondary.

All the fancy chart patterns, indicators, moving average crossover signals, oscillator extreme readings blah blah, are irrelevant. It's all about how price reacts on & around it's natural support-resistance balance or value levels, & how you adapt your trading to it's ebb & flow which will dictate whether you're a net winner or loser over time.

Begin to comprehend & understand that simple concept & you'll progress your profit curve dramatically

[daydreamer65]

I was just making a list of all the different concepts
which have been discussed within this thread.

Price action
Support & resistance (supply & demand)
Prevailing trend recognition.
Various triggers (ib/ob etc.)
Divergences.
Candlestick patterns.
Fibonacci.
Chart patterns.
Trade management.

while keeping an eye on 160.00 level & feeling that maybe
we are too close to Friday.

[kagein]

we use price set-ups or triggers on & around our views of the pertinent support-resistance levels.

At the present time i view each s&r line equally and just look at price set ups around each one. I do take particular interest in lines drawn from the daily chart, however they can be far apart, how do u decide which minor s&r are attracting the most attention? Do you look at how many times it has tested a zone and hence apportionate weight to each particular line?

[Jocelyn]

Originally Posted by kagein

At the present time i view each s&r line equally and just look at price set ups around each one.

I do take particular interest in lines drawn from the daily chart, however they can be far apart, how do u decide which minor s&r are attracting the most attention?

Do you look at how many times it has tested a zone and hence apportionate weight to each particular line?

The significance of a potential support or resistance level is heightened by the reactive behaviour in & around it’s vicinity. Remember, it’s the general zone which harbours most of the potential activity, & that zone can quite often stretch to a 20-50+ pip channel of interest.

If price is re-visiting a previous level of intense traffic (such as this current support/demand zone on the GBPUSD between 9710 & 9775), then you can expect volatile & erratic behaviour.

You only needed to glance to your left & check the reaction from the nearest 2 visits in late February & mid March to anticipate increased interest as price again vibrated towards it late last week/early this week.

These levels have to begin somewhere though, yeah? We simply work from right to left when adjudging the potential of a reaction zone & carry those levels forward to assess their relevance in future price activity. Once a level loses it’s significance we adjust the specifics & continue to observe the behaviour.

Always look left!!

If your primary template is the Daily timeframe, then sure, most of your priority levels will emanate from there. Secondary levels could be observed from a 4 hour or 1 hour viewpoint if you’re seeking intermediate confirmation.

But essentially, you’re looking for levels or zones of activity, which have displayed previous strong attraction for players. The further back & more often those zones reacted, the better.

Tess, Jim & their crew mostly plot their primary action levels via the 4 hour timeframe. I then utilize & cascade those levels down onto my micro timeframe templates & my guy’s execute according to our specific aims & intent at the time.

If a level or zone is a genuine s&r reference then it’s going to react & offer opportunities whether you’re a micro (tick-1min) or a macro (240m-daily) timeframe trader.

The execution is secondary. It’s where you execute & how the execution is managed which deems the exercise productive….or not.

[kagein]

Ive been demoing a method that utilizes price action around s&r zones. For breakouts i wait for price to retest a level before entering, for reversals i generally wait for an obvious LH or HL setup before entering, simple stuff really. My demo account is outperforming my live account by miles. I'm frequently closing a trade for greater than 4R, in some cases i risk 10 pips and get a 100 pip move. If these kinds of results are sustainable they would provide a better R:R than many of the 'systems' I've seen out there.

Ive made 16 trades, won 12, lost 2 and broke even on the remaining 2. I risk 2% on each trade( a bit much for some).

Below are some trades i took this week, blue highlights my entry bar, green signals my closing bar

*note* the entry in the second chart was actually an inside bar on the software i use.

[Tess]

Good for you George. Adopting those types of price triggers to engage alongside your s&r observations will serve you well over the long haul.

As you’re quickly finding out, one of the major benefits of this type of trading is, that whatever market conditions exist (range or trend), you’ll have a set of tools (well defined set up’s triggering off sound price principles) to pick your route thru your chosen pairs.

Whatever you do DON’T COMPLICATE IT. Keep it simple, don’t be tempted to add any more indicators or other filters.

If the conditions aren’t suitable for your specific set up’s or triggers, then wait patiently until things line up. It’ll be well worth the wait.

One of the main (if not THE main) reasons for failure in this business is a total lack of discipline. The itchy finger & impatient nature kills most new traders.

Those who spend quality time researching & preparing a simple, effective trading plan & properly test out their findings will hold a tremendous advantage over the rest.

Keep us posted on developments George