I am thinking about joinning the war room , are you getting good results following the dnb strategies and trading setups? thank you.
yes got results following dnb method,you wont regret after joining war room,we going good there.
regards
vasude
The AUDUSD bears have steamrolled the charts and the trade setup we spoke about earlier has hit a 1:6 (600% ROI) target.
If you risked 2% then that would be a 12% return. I am pretty sure most traders struggle to do that in a month. I hear all the time traders saying that want to aim for 10% increase per month, we will did that plus change in one week. All in one trade, thatās the power of price action trading and itās why you need to get rid of indicators off your charts because they only hinder a traders real potential.
The EURAUD trade has also push upward nicelyā¦
The crude oil support didnāt hold and the market just collapsed down on itself. Crude oil is one tough ā¦ to trade. I didnāt take the trade because I was in the AUDUSD trade and I try to just have one open trade at a time to avoid overtrading.
Watching the USDJPY has some interesting movements have flagged our attention on the daily chartā¦
A bullish breakout has occurred during the early hours of the Asian session after the market opened. We see this all the time where these breakout traps suck traders into bad positions. Then they get wiped out after the market pulls back the curtain and reveals itās true intention.
In this case bulls have been sucked into a break out trap into higher prices, this move has been rejected now that London is online and we will most likely see this market drop off the back of this event.
Hi everybody,
Iāve read the first 80 pages of this thread in the last 2 days, Iām a bit hungry of PA as is completely new for me. Iāve lost time studying indicators and so on, ( just studied ) but I feel PA suits better to my way.
The point is Iām seeing everytime more, that S/R are fundamental for making good trades, meaning that they have to be traced very well to spot some details as ( fake breakout).
Iāve read all the advices gave in this thread but I know my skills will improve just with some experience.
Btw Iād like to get your opinions on something I was wondering about:
- What to do when the daily chart shows S/R far away from the current trend?
Iāve read the best S/R are mostly those ones closer to current candles, meaning that we donāt know to spot a support of 6 months ago if we work on daily.
Right now Iām watching AUDCAD daily, there is a deep bearish trend since 2 months, so itās impossible to find close S/R.
Zooming out on weekly we can find a resistance, but can we say does it work for our PA?
Iāve tried to do another thing and here Iād need to know your opinion, cause I donāt know if has some sense.
I went to the 1 hour chart and tried to trace a resistance cause there is a little range in the bearish trend of this cross now.
My question is: can I trace S/R on smaller TF when working on daily if itās impossible to find any worthy SR in higher TF?
Itās my first attempt posting into this forum, so forgive me for any mistakes and for my english
Hey Plainview
I will try to help out as best I can.
When you are trading off daily charts, my strong advice would be not to try and get Support & Resistance levels on smaller TFs, certainly not H1.
Here is a daily chart of AUDCAD where I have put in some horizontal S&R levels, with the arrows showing (hopefully) how I arrived at them.
If you are looking for S&R levels below where price has recently spiked down (0.9482), like on this next chart put a horizontal line there and then go back as far as it takes (if your price history allows) to see where there were nearby price reactions in the past.
Here we see that there was pretty strong S&R back then to almost the exact price of the 20 June 2013 low.
This is no surprise, as old S&R levels are often respected currently.
Below that, there would be more potential Support around, say, 0.9250.
We also need to remember that S&R levels are not exact prices, but are areas or zones which price might react to at some time in the future.
Anyway, this is generally the way I look at these issues myself and HTH ā¦ :13:
I agree with yack here, donāt use the lower timeframes for s/r mapping
Hey plainview,
I think youāve main the correct choice making the switch to price action trading. Indicators were made 40 years ago which catered for different markets, much more stable trends existed back then. If we as traders today went back and trades those markets 30-40 years ago we would probably find it extremely easy.
- What to do when the daily chart shows S/R far away from the current trend?
Iāve read the best S/R are mostly those ones closer to current candles, meaning that we donāt know to spot a support of 6 months ago if we work on daily.
I found it hard to understand what youāre talking about here, and I think itās because your approach to support and resistance might be a bit out of tune.
As Yick suggested, lower time frames charts do NOT offer any real insight to support and resistance, why? Because they are very noisy. The daily chart has enough price action data in each candle to provide a nice stable and clear read out of the market. Thatās why signals that form on the daily chart have much more value than a signal that forms on the 1 hour chart.
Remember, when you are mapping out support and resistance you only need to map out the recent levels which have been acting as key turning points in the market. Using the daily chart you can identify these levels much easier. Then you can go to weekly and look for any key levels there which have been acting as key turning points.
You donāt really need to go back through the chart history and look for levels there unless price is breaking into fresh highs or lows and youāve got no recent price action to work with.
Today we are watching a price action setup that as formed at a recent level in the markets which has been acting as a turning point for the market recently.
This level is not so textbook clear cut, but you can see how this level has had responsiveness from price every time it has reached it. The first two blue support squares that I marked only had small reactions in the market with this level but I thought that I would market them.
We are looking at a bearish rejection candle off this level where we are anticipating lower prices now as the market has already demonstrated that it is starting to respect this level as resistance.
Thank you all.
I wanted to take an extreme example regarding my question about lower time frame cause the AUDCAD gave me problems tracing SR. There is a strong bearish trend, so the unique way to find out other S/R was to zoom out on weekly and the first S/R I found was around the end of february as you can see: (weekly)
Iāve learned on this thread the best S/R are the closest ones to the current price, thatās why my question on this cross.
Iām trying again to add S/R on AUDCAD daily, I paste here my attempt and hope to get your opinions for me to better understand if Iām right now
thanks in advance
Yes Plainview - I think your last chart is the most useful.
After all, at any given time, it will usually be sufficient to have one level marked above current price and one level below that price. No real need to make it any more complicated than that. We can always draw new levels as necessary after price breaks above or below those which are currently marked. This can avoid a lot of confusion, something that probably every trader has experienced when first starting to get a handle on the whole Support & Resistance paradigm.
The only thing Iād say is that your upper Resistance level may need amending, because we donāt yet know, IMO, that the current upward thrust in price will find resistance there.
Anyway, FWIW here is my version with upper & lower levels marked.
Support looks good,
I would move that resistance level up higher where the last swing high was.
thanks Yick,
yes Iām trying to make it more simple lately otherwise is a mess with too many lines
thanks DnB and my compliments to your work. Itās really hard to find something worthy in italian about PA, or at least I still didnāt find it one good, but you explain very clearly so itās a pleasure reading your posts
Thanks very much for your kind words plainview.
I thought I would put up a trade setup from that formed at the closing of last weeks trading.
I usually donāt favor range trades but this one looks very clear cut and stands out as an obvious signal.
Looking at that large bearish rejection candle which displays clear bearish rejection of the range top on the daily chart. Due to candle having a larger range I am going to use any bullish retracements up the candle range to get a better entry price into the trade. Iāll be aiming for the 50% retracement level so the risk reward profile of the trade is worth taking.
During my experience with trading daily charts over the years, Iāve noticed that ranges are conditions that are relatively short lived. Usually on the third retest of the top or bottom we see a breakout of the range, since the third retest of the range top seen price action respect the level, I am anticipating that the range support wonāt hold when itās retested next.
Thatās why I am taking a shot at this range trade with the plan to hold for that statistical chance that the range bottom isnāt going to hold and Iāll catch a nice breakout.
Letās see how it goes.
Looks like a pinbar is forming at the top of a previous range on USDCHF D1
What do you guys think? You could make the argument to move the resistance up a tad higher, but .9500 is a nice round number. I know that what happened months ago might not be relevant to what is happening today, but if you look at what happened further back .9500 seems to be a pretty strong level overall.
I would look to sell at the daily close and put my stop right on the .9500 level. I would take half off at the first support and trail my stop to see if the rest hits the .9261 area. It has the potential to for a 1:4 risk/reward ratio which is definitely favorable in my book.
Let me know what you think.
-Noozak
Edit sorry for the bad image upload I will have to work on that
i like that EURGBP chart, especially after todays rise. Took a short position .8584, which would be an ideal retracement entry point if i understand your methods correctly ?
Hi Noozak, your trade is valid but itās counter trend. I would have like to seen a more aggressive bearish response in the candle before considering shorting. Like a more bearish close.
No the EURGBP trade didnāt work out, it moved into profit a few times but ultimately closed higher as the EURO seems to be gaining strength
Thatās why we are watching this Inside Day candle on the EURCAD daily chartā¦
If price breaches the high then we could consider going long, but weāve gotta watch those recent highs as the market could easily find resistance there again and create a double top.
Hope Iām not annoying anybody with my questions: just that I like your way of thinking about PA, so Iād like to know your opinions.
Iām not even thinking to trade on this cross, but Iām looking at it to mark resistances and supports and Iāve got my usual problems not having experience and some good rules
EUR CHF daily
The current price line seems underlining itself a potential resistance area already.
And here my doubts come. I ve always read that S/R have to be considered as ( areas ), not strict points, but sometimes putting a resistance or a support a bit higher or lower, might us missing a fake breakout for example.
So, my first question would be: do I have to put the resistence over the candle or over the shadow?
And if there is not a strict rule on this subject, what details Iāve to check to mark a resistance anyway both over the candles and over the shadows?
I wanna try to draw a resistance, so this is my attempt
As you can see, some touch the line with the candle, some others with the shadow.
And i could have put another line some pips lower with the same features: line touched by candles and by shadow at the same time.
Iām sure Iām missing something in my lacking view.
I donāt know if Iām clear enough writing my thoughts: my english doesnāt help me at all 
so, sorry if Iām making my post so long.
I wanna explain better my doubt.
Letās speak about fake breakout.
If i had marked the line a bit lower, the chart would have been like this:
Imaging for a while we were in that dayā¦I could have said is it a fake breakout, while with the resistance a bit higher, all would have been normal.
Iām a very patient person, so I will be like that even trading, but Iām worried that Iād stay stuck in front of the screen many times doubting if my set up on this detail is right or not.
So please, Iād need some general rules, then Iāll keep on trying to find my way, but I need some basis.
thanks all in advance
I think you are trying to overcomplicate the process of mapping out levels.
It shouldnāt be a hard process, you just want to identify the key turning points on the chart. You are correct marking a level there on the chart, itās clearly been acting as resistance in the past and price is not respecting it as resistance again. But if would move the level up slightly, itās always best to put more emphasis on the recent price action.
We are looking at an Inside Indecision candle that has formed at the close of the market last week. Hoping for price to break the lows here so we can jump in with any further bearish momentumā¦
Very nice chart, clear with good details great job.