Howdy Traders,
I search for trades on about 20 pairs and, at present, am experimenting with the M15 time frame. One requirement for timely entries is the ability to do all the MTFA, etc., before it’s too late for an entry being considered. Now, one of the things that would free me to take a trade is lack of strong support or resistance between entry and a reasonable profit target. Suppose I see three possible trades out of the twenty. If I were to draw support and resistance lines on all three pairs in addition to MTFA, etc., it would take too long. I’ve therefore discovered the Barry Support and Resistance indicator, which has a good reputation and doesn’t clutter up charts with broad, ugly painted zones or with so many levels that your eyes swim and you could go nuts trying to figure out which are significant and which are not.
However, I do have a question about Barry:
It creates a line of SR dots at a level, one dot per candle, but then, if the next candle produces a DIFFERENT level of the same kind (S or R), the first line is terminated and a new line of dots is printed on the new level. I don’t get it. As has been said, charts “remember” SR levels, so why should the line be terminated? One workaround is for the trader to draw a horizontal line that spans the chart on each of these terminated levels to see if they might block the hoped-for price movement; but that still begs the question: Why is the line terminated?
Thanks,
Norm
A chart to finalize your explanation will help
You’re right, Regan64. Thanks for mentioning it.
As it turns out, I’ve decided to no longer use SR indicators. I’m drawing the lines manually now; but to respect those who have tuned in to this thread, I included a chart - and I’d still like to understand. See below the chart for comments.
Look at any of the support and resistance lines except for the last two. You’ll note that as soon as his criteria are met for a new line of the same kind (S or R), the prior line is abruptly terminated. That is what I don’t understand. SR lines are said to last a long time even if they’re broken by price, so why the termination of lines when a new one is created?
Thanks,
Norm
Thanks for the diagram, it’s much better now. This is my take on your questions, I’m not a fan of Barry SR but if I get you well you are asking why the dot goes away once a new line is formed unlike the parabolic stop and reverse indicator were the dot remains even after a new line formation. What if that is the way the indicators is designed to function? If my guess is right then the question now would be directed to the trade meaning of the line disappearance. You can draft your own meaning of that SR behaviour by paying close attention to the movement of everything you are seeing in your chart. Ask yourself questions like what really happens when the line dissappear at every new line formation? Just pay close attention, you might get something that would help you in your trade journey. Another alternative is to read more on Barry SR, probably any free information you can lay your hands on.
Perhaps the new trend line that forms is stronger than the existing one, but too close to it, making it obsolete? You can only have so many TL’s, and you can’t have them too close together. This is just speculation as I’ve never seen this one before.
Hi Mr. Money 
I think what you suggested is a very good possibility.
Take care,
Norm
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Here’s something I have found interesting …
I’ll go to the monthly TF, scroll back through history looking at ADX extreme highs, box the candles/wicks at these extremes and set the beginning/ending year parameters on the box to 2006 and 2020. After doing a few of these I’ll zoom out and it’s pretty interesting how these levels “play out” … is it coincidence… maybe. I don’t know. But I’m using this method to establish some substantial “action” areas.
Would be interested in other’s input if they try it. This is along the lines of the Darvas box strategy.
kc
Hey kc,
I think I understand. I’ve been toying with entries on M15. Tell me if I have this right: I went to the monthly and saw only one extreme ADX high in the last six years. I then put a horizontal line at the high and low of the candle and went back to M15, where the two lines contracted into one visible horizontal line. I saw a few touches of short candles there, not enough to really catch my attention if I were just looking at M15. Am I doing it right? I’d like to play around with your idea a little more. Just tell me if I did it right or else correct me, OK?
Thanks,
Norm
It sounds like you are doing it correctly. But if you are trading the 15M you might want to try the 4hr/1hr/15…
I trade daily chart only so I’m looking turning points where there was a lot of action. I will mark the monthly with rectangles and perhaps the weekly with horizontal lines or a different color rectangle and then go to the daily and see where price is.
I’m no pro. But, I found it interesting to find an ADX extreme on one point in the chart and mark that level into the past/present future and see how price has reacted in that zone.
KC
Edit: This chart has the ADX main line only, the +/- lines have been set to no color. Below that is the DiNapoli Stochastics. The MA’s are I believe the HULL MA 9 and 20. I’ve scrolled back in a number of charts and moved ahead a candle at a time and think that I will go back to using the XLV4 MA that @Trendswithbenefits discussed in his Befuddled thread.
I will mark the ADX extremes on the M and W TF. Then check at the NY close the the M/W trend, MA Slopes, DiNapoli Stoch, PA, distance in relation to the “high” action zones.
What I have to do in conjunction with the above is combine it with your @Dennis3450 S/W analysis. I believe this will give me an edge I can just about “hold onto with my fingertips”, 
Maybe I should start trading with a bag of chalk so I don’t lose my grip!!
The other issue I am still wrestling with is stoploss location and setting TP. I have been setting these based on PA but perhaps it needs a little more attention.
Sorry for rambling… not my intent to Hijack, we now return to scheduled programming.
KC
