Alternative Technical Templates.

[Jocelyn]

No, not in the least. I'd imagine it's more a case of differing aims?

There's a s&r line at 237.60. Part of which hails back to 2nd quarter, which I believe Tess has highlighted on a couple of chart recent examples. We wanted to test the potential of that next resistance zone from underneath this stubborn 234.50 ceiling. That's the reason for hopping aboard slightly lower down.

I'm not a great lover of doing battle with prices as they engage at actual lines of s&r. I'd much rather sneak in higher or lower on the scale as prices begin approaching these busy zones.

That way, if the zone fails to react favorably, we've not only got a little more time to adjudge the scenario properly, but also sufficient cover to leg out of the trade with a little profit, or at least break-even.

Generally, every man & his dog is looking for the pullback from a break-out of a stiff s&r range, or maybe a 1-2-3 continuation of a consolidation zone? I much prefer to already be engaged & viewing the scene from a little farther back.

If the level proves beneficial, we can then maybe think about compounding that area instead of taking on the actual risk of initiating a virgin trade at a 'hot zone'.

Which is what I was referring to at this current level of 235.0 on the Geppy. That level offered us choices (to compound or not), instead of a single decision of striking a stand alone trade or not.

[daydreamer65]

Read this a while ago.

Being aware of these important support and resistance points should affect the way that you trade a stock. Traders should avoid placing orders at these major points, as the area around them is usually marked by a lot of volatility. If you feel confident about making a trade near a support or resistance level, it is important that you follow this simple rule: do not place orders directly at the support or resistance level. This is because in many cases, the price never actually reaches the whole number, but flirts with it instead. So if you're bullish on a stock that is moving toward an important support level, do not place the trade at the support level. Instead, place it above the support level, but within a few points. On the other hand, if you are placing stops or short selling, set up your trade price at or below the level of support.

Also Hi Jocelyn would you please explain to me "compounding"?

TIA.

[tonymand]

Originally Posted by Jocelyn

No, not in the least. I'd imagine it's more a case of differing aims?

There's a s&r line at 237.60. Part of which hails back to 2nd quarter, which I believe Tess has highlighted on a couple of chart recent examples. We wanted to test the potential of that next resistance zone from underneath this stubborn 234.50 ceiling. That's the reason for hopping aboard slightly lower down.

I'm not a great lover of doing battle with prices as they engage at actual lines of s&r. I'd much rather sneak in higher or lower on the scale as prices begin approaching these busy zones.

That way, if the zone fails to react favorably, we've not only got a little more time to adjudge the scenario properly, but also sufficient cover to leg out of the trade with a little profit, or at least break-even.

Generally, every man & his dog is looking for the pullback from a break-out of a stiff s&r range, or maybe a 1-2-3 continuation of a consolidation zone? I much prefer to already be engaged & viewing the scene from a little farther back.

If the level proves beneficial, we can then maybe think about compounding that area instead of taking on the actual risk of initiating a virgin trade at a 'hot zone'.

Which is what I was referring to at this current level of 235.0 on the Geppy. That level offered us choices (to compound or not), instead of a single decision of striking a stand alone trade or not.

So you have favoured set ups some distance away from the actual SR zone, is that correct? I also presume you can do this because you have a professional view about the likely market direction based on your understanding of the fundamentals and technicals otherwise you would be left too often falling short of a test of the zone of interest. Again as with Tess thanks so much for sharing and stimulating my thinking

[Jocelyn]

Originally Posted by daydreamer65

Also Hi Jocelyn would you please explain to me "compounding"?

Hi daydreamer65

Compounding a level is simply adding to, or scaling into an existing core position.

For instance, you might have a core GBP long stake from back at the 1.9900 base.

You waited for the next stage step (a higher low, or not!) to confirm directional bias, & then decided to feed into your core leg. You'd add-in above 2.0055 maybe?

That level might have been designated a secondary s&r level according to your research?

And so on, as prices confirmed the stage steps up the ladder. Your maximum position will obviously be in accordance with your appropriate risk model for that trade or position.

If the trade begins to string out, you would also be scaling out, or profit booking along the route, which would allow further compounding of your overall risk basket as stakes were re-allocated.

[Jocelyn]

Originally Posted by tonymand

So you have favoured set ups some distance away from the actual SR zone, is that correct?

I also presume you can do this because you have a professional view about the likely market direction based on your understanding of the fundamentals and technicals.

Yes, we adopt specific plays on & around support & resistance camps if the geography stacks up. It doesn't always dictate we'll operate that option. Again, it's wholly dependant upon the aims & expectations of the trade at that time & level.

It's not always condusive to execute the same set up every day at a specific level. Volatility, liquidity, speed & depth of price behaviour change & develop at varying degrees of consistancy. Therefore, we need to draw on the relevant tools to do the job at that time.

That's why we prefer not to operate mechanical type systems when trading these instruments. Conditions change very quickly & we prefer to rely on our experience & prior knowledge of price activity & generic range/trend behaviour up & down the ladder.

It's also a yes to your second comment. In my view, you really need to combine technicals with fundamentals to offer a balanced perspective.

[Tess]

Originally Posted by tonymand

Just taken half at the high of the day (at least so far it is the high!) - feels good. Move my stop to b/e and 'will let the market prove me wrong'.

Bet you're glad you left it alone back there @ the b/e huh?

Booking some profits helps to satisfy the "greed" factor too. Takes a little heat off the trade

Providing this next round number here @ 237.0 attracts support, it should be good to trot to next step s&r line @ c237.50-75.

[tonymand]

Break above the asian session high and resistance. Now time to get out as we run into overhead supply. EY chosen today as there is very ragged action on both pound pairs whereas the ranging action in EY was clear then a clear higher low at 163.90 ie just below the round number. Dropping to the 5 min chart showed hesitation at the days high then a bullish candle to break through that so entry above 164.30

[tonymand]

Originally Posted by Tess

Bet you're glad you left it alone back there @ the b/e huh?

Booking some profits helps to satisfy the "greed" factor too. Takes a little heat off the trade

Providing this next round number here @ 237.0 attracts support, it should be good to trot to next step s&r line @ c237.50-75.

Hi Tess. Yes, a bit new for me to stay back and I kid you not it has challenged my comfort zone for sure. However have left the pair alone and looked at EY instead which looked clearer to me for a quick trade this pm, although now I look at the GY not sure why I thought EY was clearer (a couple of candles makes a big difference sometimes). I have now moved my stop to 235.80 on GY and think I might head into the garden for a cigar in order to stop myself fiddling and again run the risk of overtrading. EY I am now at be for my second half and will also try and stay with it for awhile. Never ceases to amaze me the difference between knowing what you 'should' do (based on your tactics as opposed to necessarily being right) and doing it. Just seeing the shooting star right now on EY has got me itching to pull out altogether but that runs against the overall plan I had at the beginning of the afternoon which was to see if we could get through 165. In fact just thinking while I am writing I am beginning to see thats what Jocelyn was talking about in terms of getting set in advance - mmm need to think more about this

[tonymand]

Interesting how many of the successful strategies on the forum either contain the same principles and/or give the same entries. Just looking at my EY trade this pm the 4H and 1H are both above an upsloping 60SMA and the 5min crosses the 60SMA just before the entry on the new high. So this seems to fit Capt Currencies strategy. Will be interesting to see if anyone can confirm that or posts a similar trade on that thread

[tonymand]

Well so far so good with this. Stop is tucked away safely (I hope - if I have moved too quickly then would welcome comments on that). Probably the first time I have allowed such a big move against me and stayed with it so very happy with this. That hammer was a possibility for anyone on a shorter time frame to hitch a ride back towards the high of the day. I am currently long GY and EY and hoping for big things but happy that they are now entirely risk free. Will now try and practice what you talk about Tess and Jocelyn and try and think this through as we proceed through the week without the immediate emotional hassles of getting in and protecting the trade during those first few steps. Hopefully will help me to get a new perspective and take me another step towards my current goals