Hi frxbee,
Previous weekly candle was bearish but still price move passed the last week high and closed significantly in higher price. So according to the daily bias we can enter long position but we need to wait until price drop little bit more so we can get in good price and also reduce the SL.
If I want to go long on this pair I will wait until the price drop to 113.50 level and look for the signal on smaller TF like 4 HR or 1 HR for entry otherwise no long trade at present.
Price look like it will drop soon, if I want to open position I will go short at this price as weekly was bearish and yesterday daily candle closed bearish.
You are rite that 114.00 level is a good psychological support but if I open a position on that level my SL will be more than my risk per trade. So if the price move up from there I will have no trade.
I was referring to Wednesday candle which is bearish. So I will only look for short not long.
When you have previous weekly and daily candle in one direction then there is high probability that price will follow that way. Yesterday daily candle closed bearish with a wick on the top.
Thank you for the explanation. But what do u mean by âits always good to open only the high probability setup like 1 or 2 entry per day or per week that way you save your capital for next trade.â
So is it advisable to open 1 or 2 trade per day? As long as its a valid setup.
Firsts rule of the trading is to save capital by any means.
For example suppose you have certain amount in your account by which you can open maximum of 5 trades according to your risk/reward, you open 5 trades in 1 day or in 1 week same time and you have big loss on that day or that week and most of the capital gone,so you have no capital left for next trade.
But if you open 1 or 2 trades in 1 day/week and you make loss you still have money left in your account to recover the money in next trade.
Where you have valid setup and your account is big enough then you can open 1/2 trades a day or 3 trades in a week in same time. Because you will only get 1 valid setup in one given pair normally.
I am not very good at explaining stuff but I hope you understand what I am trying to say.
Great job sharebazar that is a good win. If i can make that in a couple of trades, i would be counting my blessings. I made some pips too but on other pairs, however not nearly as much as you, and i am also happy.
Thanks tonyro44, I am always happy if I can make 1 pip or 100 pips. Very good week for me 204 pips all together. I am bit annoyed due to the fact that my entry was at very good price according to my plan, as you know it is not easy to get this type of entry,this is not the first time happen with me lots of time hit my TS and price move without me.
But I am always happy that price going according to my plan and I am making some pips at least. Always looking forward to next trade doesnât matter I am making pips or not.
Congrats on your hundreds pips⌠Wish I can do so too.
Anyway I have a question regarding drawing the support resistance line on the monthly chart. Do we draw on the previous month, letâs say August, or do we also include the current month. If we were to draw the current month, which is Sep now, do we only draw on the highest point as of now, or do we also include in the highest & lowest point?
Most of the time High probability trades are unfold around higher TF support/resistance area . As a trader we need the previous market data ( price, candle stick, support, resistance etc) to determine the future market movements, so we need Monthly, Weekly and Daily support/resistance to predict our entry and exit.
After you draw the SnR on M, W and daily and when you move on to lower TF like 1HR or 4 HR you will see the market move like a wave. Try to read the wave pattern how the price moving one step to another step. What Nikita called Breakout Pullback and Continuation.
So we need August SnR as well as September SnR but September just started so we donât know how the market will close at the end of the month. Look for the wave highest and lowest point to mark your SnR.
I donât know I have answer your questions correctly or not if not please check the baby pips schools support and resistance topic for more depth explanation and also read the thread where Nikita mentioned it previously regarding the support and resistance.
Thanks Sharebazar for your replies to my questions.
I just read your answer to Gssgâs question on drawing the SR lines for M TF.
You mentioned âwe need August SnR as well as September SnRâ. How do we draw Monthly SnR by looking at only August data? When I draw SnR, I try to find more that 2 points that line up in the last 12 months.
I an not sure how to draw SnR by looking on at one month. I have really missed some important thing here. Maybe this could be the missing puzzle in my training. I did go through the entire thread last week, and I might have missed this and apologize for it.
Could you please give me an example on this please?
I am looking at the following 5 pairs and would like to know whether I made any mistakes in my analysis. Your feedback is appreciated greatly.
My SnR levels for all TFs are based on historical data (at least 12 months)
chf jpy
Monthly and Weekly bias is down
D1 bias is down (price will go up to form the BPC pattern)
Waiting to enter short in D1 SR level around 113.17
eur gbp
M1 bias up
W1 bias up
D1 bias up
Even though the price is going down, I think it will bounce off my M1 SR @ 0.7975 (BPC)
Hope to go long around 0.7975
gbp chf
M1 bias down
W bias up (price hit and bounce off my W SR @ 1.5044)
Not sure about bias. So NOT TRADING
nzd usd
M1 bias down
W1 down (but last week it formed a hammer or spinning top. Price miight go down)
So not sure about the bias. NOT trading
usd cad
M1 bias up
W1 bias up
D1 bias up (Last Friday it formed a hammer or spinning top)
My D1 SR is @ 1.0909
Looking to go long it this level breaks
TC Holland,
I missed the entry on usd cad (was asleep). Same goes with eur gbp. Hopefully I could open one for gbp chf.
I am thinking of setting pending trades, so that I donât miss entries.
If I went long on usd cad, I would just close 50% of my trade now and move my sl to be as the price is at my D1 SR 1.0909. I am looking to go long if it breaks this level.
You will have to be careful as it is Monday. So minimize risk.
I like USD/C too but on Fridays i like to close position not open new ones. I donât have a clue what happens in the week end , so i just wait for the new week.
I know: trading on Friday and Holding it over the weekend is not a good idea But on Friday I moved it to brake even and decide to hold on. TS was hit on 1.09118 but its still going up:26:
TC Holland the problem is even if you bring your stop to break even , there is always a possibility that it gaps and go right through your stop at the beginning of trading on Monday. Its just a chance of that happening thatâs all, it has happen to me, i am talking from experience,have a great trading day.
Sorry, I have a question to ask u as I really canât figure out. With regards to your post on Eur/Gbp & Usd/Cad, I donât quite understand y you say that the monthly bias for these 2 pairs is up. As on my chart, they both shows bearish candles. Or is it the difference in brokers? I am using IC markets, which is a five candle week chart.