The reason for me to draw my resistance line where i did is the round number at 1.7300 AND since we do not have any recent structure to take into account i scrolled out my charts and found that this level provided good support and some messy behavior back in 2010.
Just to illustrate this i used the weekly chart for my screenshot below. But i do only use daily charts to draw my S/R lines.
But like i said this is a counter-trend trade and you are absolutely correct to look for long opportunities since we are in a strong up trend. But first price has to clearly break this level and then you can look for a retrace back into previous resistance/support at this level and see if you get a nice PA.
Thanks for taking the time to explain your position Diablo, I appreciate it. I understand your rationale and can see the bigger picture from your illustration. Another piece of learning for me!!!
Hah, nice! Iâm also on these two, nzdusd already TP, and the second is a really close to TP, with SL at BE:D
PS I also agree with comment on Johnathonâs method, it is working, no doubt here. Itâs even strange, how Iâm not loosing, given the fact that Iâm a noob - all thanks to teachings of topic starter. I think, by emphasizing the strict requirement for setup, Johnathon really have found the key to success. Great approach, Johnathon!
Your lucky to be able to get started on such a good foundation. There are a lot of people who blow through numerous accounts before they find something like this.
Ussualy, i draw the S/R on daily and find the Price action on 4h for intraday trades. For long term trades, i just only find the Price action at S/R on daily or higher time frames. The Price action method is not work well under 4h chart.
Almost of us have just got successful trades on CAD/CHF, AUD/CHF, NZD/USD, NZD/JPY on last 2 days so far.
Lot of super dooper trading done in here in the last 24-48 hours!! :35:
The reason I post is because right now is the second most dangerous period for a traders account! After a series of win is when the trader if super likely to give it all back and then some if they do not have the experience of regularly making money. Donât let this be you. Hold onto that money and keep it. The major problem is the feeling of making money is a rush that is hard to get anywhere else and everyone wants to get this feeling over and over again and so once the trade is finished they will look for the next âHitâ (the next trade). The trick for you is to make sure the next trade is just as A+ as the last trade you played and as long as it is then if it loses then it doesnât matter. Just keep playing A+ trades and donât fall into the trap of starting to chase trades for the felling of being in a trade.
The other thing is that anyone who has been trading for a while will now know is that trades tend to come in waves and it is all about saving your cash whilst others burn theirs and then striking. There will be quiet periods in the market where the market does not much. This is the number 1 period where the trader is likely to lose their money. This is where traders need to save their cash and sit in the corner watching as other traders post their trades in here and losing their money knowing that a bunch of trades come in waves because they always do like we have just had. This is how traders who trades a lot less can make a lot more. They watch through the quiet period when the market is ranging and bopping up and down as other lose money. These traders who lose during this period have to then play catch up. When they are then playing the good trades they are only recouping losses to get back to break even, where as the other traders who have sat patiently smoking their pip can strike and clean up.
Some food for thought after these next few trades end in the coming daysâŚ
Its still working for me under 4h like 1h or 30M, even 15M, but at the low timeframe the we must act faster, more time to focus on chart, less time to think, so on more stressfull âŚit will be cause of more mistakes to launch the bad trades, at low timefarme, will be easier to trap in to the fake moves of the market makers and BIG GUYS to catch our tiny stop loss. in the higher timeframe, the PA signal is more believable. i just trade in low timeframe when my emotion control is really good, and the market have clear direction. if i feel any crazy moves or small ranging i will stay out. Please give advise if any wrong, i still learning to find the suitable waysâŚ
Yes, areas should be marked on daily, even for 4h trade. You can find alot of such topics discussed in detail in the beginning of the tread!
Good luck:)
Oh, didnât saw it is already aswered, sorry for littering the tread:D
Recently I read about Fibonacci confluence that is when two or more Fibonacci level meet which can act as strong support or resistance, so I tried to put 3 Fibonacci on a chart, but it looks messy in the end like this⌠is this okay ?
Sorry Iâm quite beginner in price action
Fibonacci is a trong tool, but we ussualy dont mention about it in this thread, we just work base on what we see in raw Price, and how the price react to the S/R to find the signal to trade. All of these thing was mentioned at the frist pages. as the Jonâ advise, you should read at least 50 frist pages to get the main thing of this method as frist. it works for almost of us here, hope that it will work for you.
Very true, this tends to happen in cycles. What you pointed out today is pure psychology, as long as we do everything right with our trades nothing can soar our brains or accounts.
Cheers.
Everyone in here does it(almost) lol
