Forex Price Action

[filipl]

Jonathon,

Why do you consider 1.0050 a major support for USDCAD and not 1.0000?
USDCAD Bust Through Support

On EURCAD I drew it on 1.28 - again, very different to yours.
EURCAD Looking For Shorts

I think my biggest problem to this moment is drawing S/R at proper levels.
Could you throw a bit more light on it, please?

Fil.

Anyone else willing to share their insights on drawing their S/R levels and why this way?

[cator]

@filipl

Anyone else willing to share their insights on drawing their S/R levels and why this way?

I got the area around 1.0040 to 1.0065 as the common trading zone at that juncture.
If you plot it on the daily & track it back on any hourly timeframe of your choice you’ll see how active that s&r band is all the way from January through to when it broke & ran up in May.

Same for the upper area that brackets the 1.0400 round number (1.0390 to 1.0420), where again you can track any hourly timeframe you like to see how the price action got dealt during May’s trading, which was the only time it’s revisited that swing zone from late last year.
You’d do well to keep both those zones on your crib sheet next time the price is dealt on & around there.

[RYANpips]

Hello my name is Johnathon Fox.

Hi Johnathon
i would like to ask how many trades do you do a week?

[filipl]

Hi Johnathon
i would like to ask how many trades do you do a week?

Hi Ryan,

I’m certainly not Jonathon, but you might find it helpful (via “search thread” feature on top):
http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action-159.html#post360148

Fil.

[filipl]

If you plot it on the daily & track it back on any hourly timeframe of your choice you’ll see how active that s&r band is all the way from January through to when it broke & ran up in May.

Same for the upper area […] where again you can track any hourly timeframe you like to see how the price action got dealt during May’s trading, which was the only time it’s revisited that swing zone from late last year.

Thanks Cator,

But from what I have learnt from this thread, we should not be considering lower TFs when drawing S/R on what we look at now (1D - from original Jonathon’s link), unless I misunderstand it?

[ol]
[li]Would you draw it the same way without tracking it back to prev year (as we are swing traders (short to medium term?))
[/li][li]When drawing Support, do you consider previous bars’ highs or rather closes of bullish bars / opens of bearish bars?
[/li][/ol]
Fil.

[cator]

But from what I have learnt from this thread, we should not be considering lower TFs when drawing S/R

The example I posted is a Daily timeframe chart. I haven’t mentioned plotting support & resistance zones from lower timeframe charts at all.
The reason I mentioned tracking the price back on an hourly timeframe was purely to offer you a close-up view of how the price interacted with the zone over that period of time.

Would you draw it the same way without tracking it back to prev year

I go back as close or as far as the zone dictates.
If it’s an active zone then the chart will tell you how important it is, or not.

When drawing Support, do you consider previous bars’ highs or rather closes of bullish bars / opens of bearish bars?

Both.
If price was dealt or traded within the area I’ve identified then it’s valid in my book, which is why support & resistance should always be considered as a band or zone of potential activity rather than a precise line. But that’s just my view, others may have a different slant on it.

[bhops]

If price was dealt or traded within the area I’ve identified then it’s valid in my book, which is why support & resistance should always be considered as a band or zone of potential activity rather than a precise line. But that’s just my view, others may have a different slant on it.

I very much second this. Although I do draw lines for my S&R I do pretty much view them as ‘zones’ and give price some leeway in approaching them. Price doesn’t have to hit my line to the pip for me to consider trading it.

[highspeculation]

@Forex_School_Online

There is no Pin I can see. Can you load a chart so I can see what you mean please? Make a lot easier to help you…

Looking at it again it isn’t very obvious but the signal did work.

[Sicnarf]

Hi guys!

I spotted this and just want your opinion.

My criteria:

1. Trend is up so am trading with the trend.
2. At a swing low
3. At an S/R area.
4. Pinbar. But only I don’t know if you would call this as sticking out from the rest. Or if you guys would consider this a pinbar.

Thoughts?

[Forex_School_Online]

@highspeculation

Looking at it again it isn’t very obvious but the signal did work.

Not really because anyone who entered would have been stopped out before it went lower. The top of this what you call Pin Bar was taken out making the trade invalid.

[highspeculation]

@Forex_School_Online

Not really because anyone who entered would have been stopped out before it went lower. The top of this what you call Pin Bar was taken out making the trade invalid.

Thanks for your observation and explanation. Much appreciated.

[FaRS]

Hi guys!

I spotted this and just want your opinion.

My criteria:

1. Trend is up so am trading with the trend.
2. At a swing low
3. At an S/R area.
4. Pinbar. But only I don’t know if you would call this as sticking out from the rest. Or if you guys would consider this a pinbar.

Thoughts?

Hi there!

From my point of view it isn’t a valid signal, at least it’s not for me. Technically it is a PB, but look how small it is compaired to previous bars. I’m not at my charts right now, so I can’t really comment about the sup/res line u have shown (altho it isn’t that significant as I can remember, when I was checking charts on friday), but looks like u would be traiding into the BRN 0.8000 if u took long position there.

Anyways these are just my thoughts and the price may still retrace.

Safe trading,
Richard

[dudest]

Hi peeps!

Here are some levels that I’m watching for this week:

Cheers

[highspeculation]

On the AUDUSD 1hr chart there is a long engulfing bar following the downward trend. It has just formed.

[Sicnarf]

Hi there!

From my point of view it isn’t a valid signal, at least it’s not for me. Technically it is a PB, but look how small it is compaired to previous bars. I’m not at my charts right now, so I can’t really comment about the sup/res line u have shown (altho it isn’t that significant as I can remember, when I was checking charts on friday), but looks like u would be traiding into the BRN 0.8000 if u took long position there.

Anyways these are just my thoughts and the price may still retrace.

Safe trading,
Richard

How about this? I’m not gonna question its validity cause it worked no matter how small it is. But when do we say it’s small or big enough? And when do you say an area is significant? Thx.

[dudest]

On the AUDUSD 1hr chart there is a long engulfing bar following the downward trend. It has just formed.

Hi highspeculation, thanks for posting a possible trade idea, will improve your trading alot!

Just one question: do you consider it A+? If yes/no, kindly post why you think that

Cheers!

[FaRS]

How about this? I’m not gonna question its validity cause it worked no matter how small it is. But when do we say it’s small or big enough? And when do you say an area is significant? Thx.

Hi Sicnarf!

I’m gonna answer this later, when I get home, but if u carefully read every post and every page in this thread, u should understand, when “do we say it’s small or big” and also where u can find the significant sup/res area. Anyways as I said, I’m gonna try to explain this, when I get home, if someone hasn’t answered it already till then.

Richard

[highspeculation]

Hi highspeculation, thanks for posting a possible trade idea, will improve your trading alot!

Just one question: do you consider it A+? If yes/no, kindly post why you think that

Cheers!

Hi Dudest,

In honesty I am not experienced enough to rate it. I think just by going on the chart (which I can’t share unfortunately) that it is a good signal but maybe not an A+. I know that we should only look at strong signals.

I am also following fundamental events but I should keep those out of this thread as we are discussing pure Price Action signals here.

[Sicnarf]

Hi Sicnarf!

I’m gonna answer this later, when I get home, but if u carefully read every post and every page in this thread, u should understand, when “do we say it’s small or big” and also where u can find the significant sup/res area. Anyways as I said, I’m gonna try to explain this, when I get home, if someone hasn’t answered it already till then.

Richard

Alrighty! Im up to page 50 already of the whole thread. Still a long way to go. Will just wait for your answer. Thx!

[FaRS]

How about this? I’m not gonna question its validity cause it worked no matter how small it is. But when do we say it’s small or big enough? And when do you say an area is significant? Thx.

BTW Sicnarf, which pair is this and are u using NY close charts? And as I can see it’s daily TF right?

Richard