Thanks for the kind words billko1977, I thought to myself that if I was to start this thread I should to it properly and try and help as many people as I can…
Around 5 depending on how slow or volatile the market is each week…
Thanks for quick reply, I can see the significant lows but i was referring to the high on 30 march was that a test of this area and the move down happened after that ?
Thanks SR. That’s the answer I was expecting. I find that I take too many trades with mixed success. I’ve only been trading live for a couple months and am profitable (at the moment anyway) but I know that I need to be able to scale back and only pick the juiciest trades of them all if I want continued success.
Thanks again your time and effort is greatly appreciated
Hi SR, in this case is the date of the starting candle July 28, 2011? If it is, my chart show that day’s low price was 1.29273 and the open price was 1.30163, then the average of those prices would be 1.29178. How did you come up with 1.30002?
Also on setting the stop loss, do you have any guidance/rule on how many pips from the upper zone?
Great point OMFX, but when I refer to ‘taking the average’ I dont mean that in a mathematical way, I am refering to averaging a number of bodies candle to find the zone. If you look at the chart on the eur/aud I have used the body of the low sept 12 2011 and the wick on the low 28 July 2011, thats how the zone has been formed, does that make sense?
Hi ameese
No it didnt retrace back enough into the zone, it touched the wick on 28 July 2011, but with so many significant lows there when she retraces she’ll come down
You welcome billko1977
Hi Sr Trader, Thank you again for your reply I was just checking because I think you are really onto something good here, I feel very lucky to have come across your thread and want to try and learn your method.
SR Player is a She and this it make it more interesting like a trader. She is a very smart one!!! 
Hi there SR Trader,
I read through the thread yesterday and liked the relative simplicity of this method. I have a live account which I have been trading for a few weeks and for now will keep with the simple method I am using there whilst I learn more about the markets. Just so that I can see how your system is working I got MT4 and the addons.
The support/resistance addon from Tradingit is on there with the boxes some coloured in, some not. I appreciate that you draw the s/r lines yourself but can you give a bit more of an idea of how the ones from the addon work. It seems to me that the green boxes get coloured in when hit from above ie the first test, the red boxes get filled in when hit from below, again the first test, is that the right way of looking at those ones?
Hi SR player, can I ask your opinion on the gbpusd daily , looks like there was an impulse move up and it hasnow retraced back to a previous area of support, any thoughts welcome.
Hello S&R Player, your system is very interesting, you have helped a lot of people. I am basing trades on similar ideas also, it is good to know it is really consistant.
However, I’d like to ask you some things based on what you said on the topic.
You make 30-40% monthly. You risk 5% per trade, right? You trade about 5 times a week, and your ratio risk/reward is 1/3.
By the math, the maximum you can make per month is: 20 (average trades a week) x 5% (your risk) x 3 (your reward) = 300% monthly
The same way, the maximum you can lose monthly is: 20 x 5% = 100%
So, by this I can see that less than a half of your trades work, right?
This way, with 7 rights and 13 wrongs: 105% - 65% = 40%,
with 6 rights and 14 wrongs: 90% - 70% = 20%
Of course, these numbers are only estimatives, but trully more than a half of your trades go wrong, right?
Regards!
Hi SR Player, I appreciate your response but I don’t think you answered my questions. Firstly, I understand how the zone is being drawn but I don’t understand how you determine the entry price of 1.30002. Do you have any rule(s) to come up with an entry price? Second, do you have any rule(s) on setting stop loss?
As I am still learning about forex trading and I like your simple system but I understand that trade and equity management are both very important to any trading system that’s why I am asking those specific questions. Hope you don’t mind sharing. If you do, just let me know and I would understand.
imo the test was already on the 9th. of may with a move of about 130 pips up. i personally am short on this pair since the test of the last red zone in your chart. 3 days ago.
cheers
Hi stolentortoise (love the name lol)
That is correct, this indicator once price breaks above and retests the zone drawn by the indicator off the daily chart, it will activate the zone and shade it in with a green color, it will also show you the exact point of the first retest as the zone box will finish there. For a short price breaks below the unshaded zone then on the first retest the zone will be activated in a red shaded color.
hope this helps
Hi ameese
Yes alot of support there on the gbp/usd off weekly as well…
Hi pepeelpew
I have provided an average over the last 8 year of using this sytem, yes I like taking around 5 a week, if they arise, some weeks its 3 other weeks 2, depending if the criteria has been met, if my last few years I like to range about 10 to 20 a month. I strive for 5% risk if I can according to my balance at the time again subject to account size after withdrawals etc.
1:3 ratio is the formula I like to abide by from the execution to the exit. Out of 10 trades 6 are right and 4 are wrong usually obviously take into consideration around 2 loosing months in a 12 month period. I am being conservative with a 30-40% return that I mention so I don’t create an overwhelming illusion of higher returns, if that makes sense. It takes a long time and involves a process to be undertaken to achieve this.
Hope this helps
nice TopFroxx, well done, very nice set up
Off the daily it does look that way, I would place a pending slightly lower between 78.734 to 78.353 as this zone is also visible on the weekly and monthly also.