Alternative Technical Templates.

[johnnykanoo]

Tess every time i read your thread i feel inspired to clean up my charts Every time I read your chart I get a glimpse of your genius and I can't help but feel like a better trader for having read your ideas.
thanks, john

[kagein]

That’s maybe one key reason why most folks come quickly unstuck in this business. We don’t pay any attention to what other folks are saying or levels they’re calling. All we need is there right in front of us on the technical charts & in the quality newswire missives. We definitely ignore all the talking heads & analyst predictions.

I would have to agree with this, im a junior equity analyst and one thing ive noticed is that analysts must have something to say, when pressed for an answer you cant just say 'im sorry i dont know the answer to that'. So definitely take analysts predictions with a pinch of salt. I would say follow your on analysis first before looking up on anyone else's and trade what you see. I no longer try and predict where the market is going, i just sit and wait till i get a decent entry at a level that lines up with my analysis

George

[4xStar]

Originally Posted by johnnykanoo

Tess every time i read your thread i feel inspired to clean up my charts Every time I read your chart I get a glimpse of your genius and I can't help but feel like a better trader for having read your ideas.
thanks, john

I agree .. after that last explanation, I spent some time setting up a 4 hour G-$ chart with nothing on it but s/r lines .. quite amazing! It is so clear looking back what the correct plays were and while that may seem true on any chart, I can see that going forward and just using price & those ongoing s/r lines it could really tell its own story.

Did you guys invent this yourself through trial and error ? or did you learn it from someone else, and then just perfect it? How long have you been trading this way? And .. do you trade the G-Y?? I would be really interested to hear your input on that .. I started a thread under GY on this board for input on that pair which is my favorite to trade .. I like walking on the wild side I guess

Thanks for your help!

[4xStar]

Ok, I confess .. I went short without waiting for a proper retracement .. but when she took that last dive, I couldn't resist

Now all my pretty lines on the 4h are ... not sure how to read them since the last previous low before this one was in Jan 07!

Looks like Trichet set off a pound-stomping party and the whole world is joining in.

Next support point???

[Tess]

Originally Posted by 4xStar

Did you guys invent this yourself through trial and error ? or did you learn it from someone else, and then just perfect it?

... do you trade the G-Y?? I would be really interested to hear your input on that ..

Our parents and a couple relatives have been active in this industry in various guises since they left college. All us kids have been extremely fortunate to have been exposed to this stuff since we could talk. Majority of our tuition & ongoing development is down to them really.

Most of us (apart from our brother & one other sister) have worked at Investment Banks & trading firms for short periods here & there, but mostly we work closely with our folks firm or their colleagues funds in the main.

We’ve played around with most technical tools & indicators over the years, mainly just to see how little value they bring to the party. To be honest nothing beats simplicity. Trouble is, most folks out there tend to have this weird inclination to re-invent the wheel LOL.

Yeah, we trade any pair which offers us an opportunity at one of our interest zones, including the gbpjpy. That pair has slopped around in a loose & stringy range at it’s current highs of late, & isn’t one we’re presently focusing on. Good luck with it though!!

I’ll hunt out your thread & take a look.

Regards next Cable support levels? just take a looky at the weekly timeframe for a little guidance. You’ll see we’re probing the March 07 lows down @ c1.9180, which correspond with some previous s&r activity around 1.9130-60 from back to April 2005 & summer 06. You might want to set your alarm clock around those levels for a little focus if & when prices arrive.

Be aware though, like any other form of analysis, support/resistance zones are merely guides. They're not set in stone, automatic nailed on trigger mechanisms. They still require work, preparation & observation. Prices can just as easily plough straight thru them without a second glance.

Emotion moves markets, & if enough fear, greed or uncertainty exists then prices can & will shift thru the gears with gusto.

However, we've found them to be a loyal friend over the years & in my view this type of analysis is definitely one of the better price aids to hang your hat on

[pipvader]

Hi Tess, since the 4hr is your reference timeframe do you fire of trades using that timeframe or do you drill down lower?

Also what are your favoruite triggers to initiate a trade with?

[Tess]

Hi pipvader,

I use the 4 hour graph as my working tablet. It's where I plot my potential reaction levels (s&r zones...supply-demand area's etc). It's my primary reference as you say.

Given we like to action the majority of our positions on & around our plotted support & resistance zones, then sure I'll drill down to a 60min or a 15min to look for an appropriate entry level in which to trigger a move.

Once a level is plotted via the 4 hour, it's there for price to interact with. It's still going to butt up against the level on a 1min, 5min or 15min chart. It's not the timeframe which dictates whether or not a level is playable, but the price reaction as it approaches & interacts with the level.

Two of my favorite triggers are 1-2-3's & breakout-pullback triggers. I'll play them via a 5 or 15min frame (plotted from the 4 hour levels) if price sets up accordingly. I'll also play a breakout of an inside/outside bar from a 60 or 240min frame if it's butting a key s&r zone. Again, I'll drill down to take a look from a tighter timeframe chart to refine an entry if desired.

I particularly like to witness exhaustion/uncertainty playing out at a key s&r zone. You can identify that type of behaviour by the way the candles/bars form on & around these levels.

Doji's, spinning tops, bearish & bullish engulfing bars send out very powerful signals that a market is undecided about direction. Especially if they print as double, triple & multi-touch tops & bottoms.

There are any number of combination price aids you can utilize out there to gain a heads up, main thing is to step back & try get confirmation from a couple timeframes as to the current behavior of price before executing your deal.

[Jocelyn]

Originally Posted by Tess

Two of my favorite triggers are 1-2-3's & breakout-pullback triggers. I'll play them via a 5 or 15min frame (plotted from the 4 hour levels) if price sets up accordingly. I'll also play a breakout of an inside/outside bar from a 60 or 240min frame if it's butting a key s&r zone. Again, I'll drill down to take a look from a tighter timeframe chart to refine an entry if desired.

There are examples of these trades all over this thread & one or two across on the 40-100pip threads too, highlighting the benefits of these type of triggers.

Yey another typical set-up played out yesterday on Cables continued slippery slide down the slopes. Took a breather & found fair value at her highlighted range zone before breaking out & pulling back to test the momentum.

A case of pulling out your favored trigger & getting aboard for the continuation ride down. You got yourself a clear entry line, a good area to slot your protective stop-loss into & some downside levels to aim for. Long as you can tick box your main criteria for taking a trade on, then off you trot

[4xStar]

Well this input is causing major changes to my templates & indicators folders!

I spent much of last night housecleaning .. sort of like clearing out a messy garage, eliminating useless indicators & templates I no longer like.

Now I am left with the 4 hr one which I can switch to 1 hr and 15 min .. what I do is draw a circle when I see a pivot on 4h that could be a change of direction .. then zoom to 1hr and check inside the circle to see what is happening, then to the 15 min (the circle becomes humongous!)

Using that method, already I see trade setups on Thursday that were glaringly obvious & would have made hundreds of pips.

Ah .. next week should be fun

Thanks to Jo & Tess for all your hard work and generosity in sharing it with those of us still learning ..

[Tess]

Originally Posted by 4xStar

Well this input is causing major changes to my templates & indicators folders!

Thanks to Jo & Tess for all your hard work and generosity in sharing it with those of us still learning ..

Thank you (& other recent posters) for your kind comments. It's really great to see folks enthusiasm & positive attitudes towards the info being relayed on here!! But don’t overlook the terrific contributions in the thread from other members, especially the work of tonymand.

Tony has incorporated some of the basic principles & put his own unique stamp on the way he works his strategies around the concept of s&r observation. Take the time to browse his posts (with accompanying charts), I’m sure you’ll find plenty of quality material to inspire you back thru the pages.

Most of the example s&r work on here can be taken away & used as a foundation or base for your own individual templates.

If you want to incorporate additional price aids such as Fibonacci, Pivots or trendline analysis to run alongside some of this s&r material, then knock yourself out. Trial & error will determine whether you can find a consistently profitable use for them.

Just because someone else doesn’t find a particular item useful, is no reason not to explore the possibilities of you utilizing them. There’s no right or wrong in trading…..only what’s right (or wrong) for you!

Most of all – have fun with it. It’s not life or death. Demo systems are there to test & iron out idea’s. Make your mistakes on the demo before you risk your hard earned $$’s in the live markets. Then gradually feed in small stakes, building up to your desired level as your confidence grows & you get to grips with a new method.