Price action ft S/R, time frames confluence and more

Greetings, I have been watching a lot of topics here, so I have just opened an account here to create this thread. I got inspired to create a journal and track my trades here, in hopes of progressing and see more than my point of view regarding trade ideas I come across to. I have just a litttle bit over [2 1/2] months of Forex experience. But I am confident that throughout my learning which still hasn’t ended and actually just begun, I had the luck to filter most fake information and false hope shortcuts like telegram signals, EA’s for crazy profits, holy grail indicators and similar things pretty fast. I work night shifts, and for the past 2 months I have spent countless of hours demo trading, reading, watching videos, going through courses and pretty much dreaming about candlesticks which a bit bothers me but whatever.

My trading plan is simple, since I do not believe that having 10 indicators swarming over my chart is going to help me. I am going to plot major key S/R on weekly, daily and H4 time frame, then as the price reaches that level I am going to see how it reacts to that and if it forms any patterns or just a simple momentum loss, I might use trendlines and Fibonacci but nothing more, just for extra data and confirmation. RSI divergences are also worth looking into. Last but not least, trading with the trend. I find the entry through the 1H to 15min time frame. My style is kind of mixed, I enjoy both intraday and swing trading, but I believe swing is safer. Risk to reward is always fixed to 1.5:1. Skipping NFPs too. Wish me good luck.

32 Likes

Sounds like a solid plan to me. I’m a fan of D/W SR levels, with the trend.

With lots of patients and good money management, you should do well.

Good luck.

5 Likes

Hi there,

Cool trading plan! Do you mind share how you identify S/R on your chart? I read it on some article saying S/R label is subjective. I been reseaching on how fellow trader plot their S/R.

I once read from some article saying S/R is where supply and demand is out of balance which price will move more violently in certain direction…So I use ATR to assist my S/R zone labeling.

How about you?

Cheers~

5 Likes

Hello! I do it in a simple yet from what I see efficient way.
I open the monthly chart and see the obvious levels where the price has touched and reacted in certain way such as reversal, touched it multiple times and went back, a previus obvious support that now is a resistance and such. Then Ii go to the weekly and do the same, repeat the same thing with the daily and from there I watch how the price reacts on the smaller time frames. If it shows a known pattern, momentum loss, candles with long wicks and such. Here is an example.
https://www.tradingview.com/x/i0lg28zq
The red line is the Fibonacci golden zone and the price has reacted to it. I treat them not as lines, but as areas of value.
Have a nice day!

2 Likes

2:58AM
USD/JPY
Result: Hit TP.
https://www.tradingview.com/x/qqHFRPOk

Saw a repeatable downwards pattern, drew two trend lines, saw that it is a bearish trend too. Noted down that there is a Fibo level, so I played it safe and put my TP above it instead of going for more.

Entry: 105.732
TP: 105.670
SL: 105.782

2 Likes

AUD/USD
Order:Buy
Saw that the price has broken a short downwards trend. I watched it approach the resistance and only saw bullish pressure, a long wicked bullish candle followrd by an engulfing one as it broke over 50 and 200EMA which are a strong resistance.
https://www.tradingview.com/x/C1mPcjWT
Entry:0.72007
TP: Still not reached, currently running in 105 pips profit.
SL: 0.71600.

4 Likes

your trading plan sounds solid as bro. hope you having a good and productive trading week.

2 Likes

Nice plan and good luck. However, I refer intraday trading. And I use 1:3 risk reward ratio.

4 Likes

Thats a good strategy i’m a firm believer in swing trading, most of the indicators i don’t use as they were created before the intorudction of forex (RSI included) i mostly rely on price action using ATR and 50EMA trading the daily chart but also perform my analysis on the smaller time frames occasionally glancing at the weekly.

2 Likes

Sounds like a plan. Good Luck !

1 Like

Good luck man me am still on the training

1 Like

Really wishing you all the best - the one thing that has really helped me is understanding how the banks are moving the markets and how its really important to be able to spot the imbalance and institutional candles where liquidity is then takne/swept. the banks are taking 99% of retail trading money this way. The other tip is to learn and really understand about wyckoff distribution and accumulation. game changing.

2 Likes

Awesome dude! I love it that you’re starting to see some characteristics of the market. Good vision! Keep building!!
Happy Trading!!

1 Like

Your understanding of support and resistance is quite impressing.keep it up bro.

1 Like

I hope you closely watch the forex calendar, because the news can impact your trading pair voliatility. Based on your example you tend to risk close to 40 pips and expect 62 pips. Avoid the beast pair GBP/JPY for the time being since your stop loss point is too small. Use the ATR and time stop loss if possible.
Having a running trade on friday with 102 pips in profit, and leaving it open may be risky strategy due to the weekend gap effect which may come at any time on monday open. Plan the trade and trade the plan is good but you need to develop skills on trade management too. I hope you will take my advise too.

5 Likes

Thank you all for the advices here, I will take them all and implement them into my trading. Coming from a country in eastern Europe and more specificaly said - the Balkans, where the main mindset is every man for himself, it’s actually delightful to receive so much help from you all in such a short timespan and in my eyes this is invaluable. I will definitely post more coming into the next trading week and track the progress here. Regarding the running trade AUDUSD, I was really confident about it even though it was Friday, I am aware of the fact that Monday and Friday are not as good statistically to trade compared to the midweek, but I took a calculated and timed risk and closed it at 100 pips profit since it started going down. And I never risk more than what I can afford to lose. (Which is not an excuse to take dumb trades where I am unsure, and with that being said if for some reason the trade goes against me I just research what was miscalculated and take it with a grain of salt, it is a probability game for me and I do my best to turn the odds in my favour.)

2 Likes

Great plan

There’s beauty in simplicity.

1 Like

EURUSD
Order:Buy
https://www.tradingview.com/x/8YhAxeE4
Reason: A picture perfect entry from what it seems now. I saw the volume, the candle closed with momentum over the resistance and the daily pivot point. There was 5 price rejections at the support, suggesting a possible price break or reversal depending on the upcoming candles, but since it was not enough I had to verify it with a pivot point and the resistance level. Now as the price went 80 pips in profit I have moved the SL to BE.

2ND buy of EURUSD. The price closed with a momentum candle above the 50EMA on the 1H candle.

I might buy a third EURUSD if the price shows no momentum loss and rejection of the 200EMA above it which is a strong resistance by itself.

Trade idea.
GBPUSD
Order: Buy
Reason behind the idea:
Following todays London session breakout the price went straight to Compton and crashed into a key support level which on my chart shows 17 attempts of breaking that all failed, if the price keeps going up it will reach a daily pivot point and the Fibonacci golden zone that are on the same level, I will keep an eye on this pair and if a candle closes above this level of 1.31375 with no signs of momentum loss then I will buy it.
https://www.tradingview.com/x/vNs4iN4T

Momentum candle seen after price action showing reaction to the support level. https://www.tradingview.com/x/KN7qqcJF

Well this is awkward, while I was typing the trade idea above the EURUSD price just shot and broke my TP which I think was set not high enough.
Order results -
1st order - 245pips won
2nd order - 121pips won. (Total 366 pips)
https://www.tradingview.com/x/bM2qnZGa

1 Like