Wow SR Player, I understand, I really feel happy to know the consistancy of this method for 8 years, once I am developing a plan based on this ideas (and some little other ones), I done a backtest from september to now, and It bring me an average of 17% monthly with 5% risk. Of course I can turn it better, but to know about the consistancy of the system for 8 years ago it is very great!
I wish to reach that 30% - 40% also.
Thank you!!!
Hi OMFX
Great question!
If you look at the chart attached you will see 3 circled lows highlighted.
The 1st circle shows the wick used for the lower part of the zone.
The 2nd circle shows the body I have used for the upper part of the zone.
The 3rd circle shows a third low with a group of candles.
The more lows the more stronger the level of resistance rightā¦
Therefore I have taken 1.30002 as a price point where there are alot of bodies candles both in circles 2 and 3, noone knows if the price will go to the upper or lower part of the zone when it retests, but the best way I have made this system work is to see the price point where most bodied candles can be averaged, in other words the more bodies candles around the same price point the more significant the resistance at that pointā¦
Does that make sense?
You are welcomed pepeelpew glad to help, thatās why I am here, alot of good people hereā¦
Thanks for that. I did start going back through the thread again and I did find the answer myself, perhaps reading it all in one go was a bit much.
My indicator doesnā have a box anywhere near where the GBP/USD is, is on the one used on the Tradingit platform? I am using their download from the toolbox. Or is it that ameese has found his/her own area of support. If so I will go see if I can find it myself.
If you change the look back days say to 200 days you can see those SR levels on the Cable with the tradingit.com indicator. It gives you a great guide of previous SR levels.
Much appreciated. I am going to go through the thread again and see if I can pick out all the little nuances that you have mentioned.
One final question for today, do you tend to find that you have more trades of a particular size, say 30 s/l and 90-100 target or 50 s/l and 150-160 target and are more trades taken from the 4hr resistance than the daily/weekly resistance.
I am just trying to get a feel for the system before I try it for a couple of months, I will go straight to live when I do as demo trading just doesnāt work for me as it doesnāt have the emotion attached.
Today I shorted twice the AUDUSD:
The fisrt arrow, the price got the stop, and on the second, I already moved the stop to the enter price.
Hi stolentortoise
It really depends on a few things such as the timeframe using to draw the SR levels but also the timeframe you are using to measure the dynamic/impulsive moves. A combination of these 2 factors will set the tone for the risk management equation to be used.
Hi pepeelpew
Before using the SR levels as an entry guide, identifying the dynamic/impulsive move is the first part of the process, without this then one cannot select a SR level.
We need to define the direction first then use a SR level for entry.
That makes perfect sense.
Hello SR Player, the trade was not so good, but what you mean by dynamic/impulsive move? You mean a gap or little bars with high volatilily?
Thank you a lot!
Hi pepeelpew
SR levels are only part of the process for defining the entry/exit of this strategy, you must define the trend first before allocating a SR to use. Please read page 25 of this thread post #247
if anyone cares, a little update on my progress with this strat:
last week: got up about 5% after many dumb losing trades which were all based on the same āmistakeā. conclusion: stick to 4h and 1d charts to determine the correct SR levels, 1h is probably still too much noise and not strong enough.
this week: did so much other trades, not completely related to this strat. was trying some VSA combined with some short term (again 1h or even 15m) SR levels from this strat. again: made a lot of losses. fortunately i also put in some orders for the āoriginalā strategy, using 4h and 1d charts for entry levels and so on. iām up 10% now after being down 20% or so because of all the other stuff i tried. conclusion: will stick to the origin of this strat now, 4h / 1d SR levels, 3:1 RRR, and no short term trades anymore and keep my fingers from trading too much. so itās now really about my psycological aspects, trying to ātrainā myself to become a clean and emotionless trader (canāt really express what i mean properly, hope you still understand what i am tralking about (sorry, english is not my first language :X). will do this for a couple of weeks and see if i can double my account (micro account). after that i might top up and take the account to the next level to make some āusefulā amount of money.
weāll see
Hi SR Player, just to be sure I got it right. Iāve attached some images of current GBP/USD situation. It looks like a short opportunity except for a fact that the indicator has not retraced to 0. The price has retested previous support level, a resistance now. So, according to your rules this test is not considered the first one because of the indicator not retracing. So before shorting we should wait for indicator retrace and then another retest, right ?
Iād go even further and ditch H4 levels as well. At least thatās what SR Player seems to be doing.
iāll stick to 4h and 1d as well, as it has proven to me, that it makes sense. maybe i will ditch 4h sometime, but first i want to āexperienceā myself, that they donāt work. up to now, they did a good job for me.
Hello SR Trader, thank you for the explanations.
The indicators you use are only available at tradingit? Can I download it for MT4?
These green and red rectangles you use to identify the resistance and support levels, are they an indicator? Or are they only rectangles which you place on chart manually? Thanks!!!
Hi SR Player!
I appreciate all your efforts to help othersā¦
You have a big heart
many thanksā¦