I’ve added 4 S/R levels on my own. Would you see them as valid? Or maybe the wicks makes them invalid?
Treat them as zones and not as an exact price level.
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Just to clarify, the blue arrows signals an entry?
If so, with the RUS2000 you’re waiting for another retest while in oil you’ve entered on the first one. Is there any reason for that?
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1 - That’s a double top, which is certainly a valid resistance level, but there’s no B&R, nor has a trend formed, that would make it a mean reversion play which I stay away from. I used to trade DT’s and DB’s but have been burned too many times. When combined with my first level then it was obviously a strong signal as there was confluence.
2 - I’m not seeing it, too much noise around that area.
3 - This could be valid (which it was, in hindsight), but not as obvious so it depends on how aggressive you want to be, but it’s very close to my level above. Perhaps you might find an entry point on a shorter TF.
4 - Yes, that could be a good area to watch.
S/R levels are subjective, we all see them differently depending on our strategies and the TF’s we work from. I use “obvious” zones like on this chart, but depending on experience, “obvious” to me is not to many others.
Wicks are good, they are what create a strong zone.
Not necessarily, the arrow is just a visual, my bias at the area I’m watching. I don’t usually add them for myself, I did that for this thread.
That’s a good question, I had little reason not to take that trade except that it was such a perfect setup I thought it would tank for sure, it still might, but it might bounce back up. As a human being I’m skeptical and more than a little irrational at times. An EA probably would have jumped on after the bounce, and after price closed above the MA., it’s still a waiting game:
With Oil I liked that long rejection wick so I was more confident. Oil is quite volatile but I thought that trend would continue for a bit. As you can see I was wrong, it shot back up and is once again headed down and forming another decent level:
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Well noted, very clear.
About the last chart of WTI 1H - do you see the multiple touches as a valid retest?
Would you value more a break and retest move that takes couple of candles to be completed (breaks, moves high, moves down and then retest) instead of a move as such (break and just after that a retest)
By the way, the transition to higher time frames really helped to understand the trend better and to be more patient. Thank you for that Matty.
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This could very well be a good spot to enter short, however, I personally like a more “controlled” trend where price rides the MA (so to speak), then enter at a pullback. Oil can be tricky with its jerky moves, so you’ll probably want to use a wider SL such as behind a previous swing instead of a SR level. But, that’s up to the trader to decide.
It’s also a good idea for beginners to limit their pairs/instruments to just a few. This allows them to get accustomed to their price movements and helps avoid over trading or trading correlated pairs.
So far having some success starting at the 2H and 1h, and then entering on 5min or 15min.
Yesterday was volatile, to say the least, and this week looks the same according to the economic calendar. Between forex, futures and stocks I had one of my best weeks ever, I’m happy to say. Most of it, mind you, coming from being on the right side of the market on Friday.
Here are some charts I’m looking at for next week. Due to the upcoming volatility I’m doing my TA on the 4H charts. This allows for wider stops so you don’t get whipsawed out of your positions as easily.
GOLD has been ranging for a couple of weeks now. It’s currently at the bottom of that range, but the uptrend is still very clear.
EURUSD is showing confluence in the form of 2 levels (if that 2nd level holds), plus the uptrend. Be careful of correlation with Gold:
GBPAUD - I was long Friday and caught this move. The weekly chart supports more bullish action, but a pullback may be in the cards:
NZDCAD - It’s pretty obvious what I’m watching here - continuation of this uptrend. Pattern traders may see a H&S here, which would be bearish:
Remember to watch your risk and only enter one trade at a time. The markets are very much correlated and if you’re wrong on one you may very well be wrong on all of them. So, space your trades out throughout the day/week, and keep your eye on the the higher TF’s.
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Love this strategy it’s so simple, trading is difficult enough without overcomplicating it.
I’ve been forward/back testing a similar breakout strategy on the 1H TF however I normally enter on the initial retest following a breakout. Maybe you’re method would offer better outcomes or I could use it to simply re-enter/add to the trade?
Thanks for sharing
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@mjd543 thank you for your feedback, and welcome to the forum. I’m happy you’re testing this.
The B&R concept is a great foundation to build a solid strategy on for beginners and for those experienced. Plus, you can adapt it to any timeframe.
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Thank for the charts. I’ve been seeing this more and more after looking at your charts and trying to mix in some ICT stuff, breaks of structure and market structure shifts. I still thinks there’s something there, so I’ll keep investigating it. But I’m getting some extra lines on the charts and see how price moves around those areas.
Have you ever used gann fann?
Also, how are you approaching tomorrow? Will you trade or stay away?
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There are many variations of this same strategy, some are just over complicated. Market structure (HH/HL & LH/LL) and BOS are good to pay attention to, especially on the daily and weekly charts as it can give you a clear visual on the longer term trend so that you have a directional bias. As you get down to shorter TF’s then they’re less predictable, IMO (some would disagree, but I suck at trading anything under the 1H TF).
Never heard of it.
I don’t trade news events specifically, it’s not part of my strategy and too much of a gamble for me. Any currently open can withstand today’s volatility as they’re based on a longer outlook.
Yea, I agree with you on this. Muddies up the charts, all the higher time frame indicators I use.
quote=“MattyMoney, post:52, topic:1249258”]
Never heard of it.
[/quote]
Sorry gann fan. Literally a fan of lines you drop on the charts.
Yea, I think big news is just too crazy. I don’t know how you can plan anything with 100 pip swings on a 5 min bar.