Yes, for me S&R might be the vaguest, broadest church element of trading. Perhaps we should have started with something more focussed such as Fib etc., then graduate to the more generic, discretionary stuff once we have got to grips with the rarified atmosphere of the 2nd floor!
Will listen to the video shortly.
My own view is that pretty much all things work as long as they are understood and applied in context, and used in concert with the appropriate other elements. Some beginner traders tend to build up a list of things that ‘work’, then try to use them all, and only then discover that they don’t ‘work’ together, or that there is another, missing element required to complete the picture.
Yep, I see what you are saying ST however, the way I’m trying to look at this whole thing is…say you are a new trader and you’re looking at a price chart for the first, or more or less the first time. The first and most basic thing you’d probably tend to draw is horizontal S&R lines. I think Fibs may present there own little mystery to new traders from which points to draw them from to what the levels mean.
Now obviously I could be wrong there, and I have no intention of carrying this thread on in a “well that’s what I want.” fashion. I’m more than up for discussing things in the order the consensus thinks it should be discussed. I was just thinking, “What’s the basics, then how do we build on those.”
I don’t have a system moneynvrsleeps LOL! That’s why I blew my account and am starting again
But do me a favour, if you have the notion and the time over the weekend. I rarely look at the EUR/GBP pair. So this is the pair I have chosen to do the little S&R experiment for the week ahead. If you get time, have a look at the pair and mark on what you think the S&R levels would be to watch for that pair for the week ahead. Try to find the weekly range and possibly 3, 4 or 5 S&R levels working from various timeframes.
I’ll do the same, and I think a couple of the other guys are going to do it for different pairs. It’s just good practice of the basics I guess and it will be interesting to see how it works out. This is my starting point:
Don’t forget that with Central Bank intervention those S/R levels mean close to nothing… so it is better to wait few days to start trading them… in the meantime I will trust only the weekly charts.
I love this, I think it’s a great little exercise, (I’m probably biased though since it was me that suggested it).
Yunny is perfectly correct in that any and all S&R levels can easily be blown out of the water by any CB intervention. However, for the purpose of this little experiment we’ll ignore the intervention possibilities and simply mark on a chart what we see as levels to watch.
Once we become proficient in identifying these levels, then we’ll start to take other determining factors into account. But for now I’m not trading any of these levels, mainly because of the point yunny raised, this is just a S&R level thing.
I work a long shift Saturday into the early hours of Sunday morning so I don’t have time to do mine right now, but it WILL be posted Sunday some point before trading starts. May even make it a video, however, I have a Glaswegian accent, you may all need a translator LOL !!
In the meantime well done you guys. So far I’m enjoying this with the input from both the new guys and the experienced boys. Play this right and we could create a great little resource here.
Ok, here is a short video of how I arrived at the above picture. When I did the original video it was 22 mins long and I was not aware that there was a 15 min limit on the youtube videos. There is a process you can go through to be allowed to upload longer videos but by the time I found that out there would not have been time to get this video on before trading opened.
This video, as you will all notice, isn’t ever destined to become a Hollywood classic, but for my first attempt at making a video, and being under duress when I found out about the time limit, it will have to do.
I did mention in the original video that there may seem to be an awful lot of lines drawn, and that some people may consider this to be too much, or over analysing, but I’m fine with that if that is your opinion. Reason being is that I personally believe the learning process is not only about what you SHOULD be doing, but also about learning what you are doing that you DON@T NEED to be doing. So any comments either way I’m good with it all.
Hope you can all understand the Glasgow accent. This was my best attempt at my “Sunday” voice so if you can’t understand it I’ll have to do sub-titles next time.
Anyway, sorry again about the rushed manner of the video, will do better next time I promise:
I actually think it’s been worthwhile so far. The EUR/GBP pair I chose probably wasn’t the best choice in the world as it seems to have such a small weekly Average range. But still took a pop up from one of my 4 hour levels today.
White vertical line down middle of chart is start of this weeks trading. White horizontal is weeks open.
Seems to have made a small hammer off the orange 4 hour. I appreciate that if you draw enough lines on any chart then price is sure enough to react to one of them, however, interesting to see how price opened and fell, rose again to test the open from a 1 hour then droppped all the way to a 4 hour.
Looking at the numbers involved I was wondering what the “institutional” levels are considered to be. I know the flat figure (1-29, 1-30, 1-31 etc) and the 50’s , however I think ICT mentions the 80 level, where Banker showed me an Example of the 85 level recently ( I know it’s only 5 pips, but is it a zone or a level?) and again I think ICT talks around the 20 or 25 level and Bankers level was the 15.
Just wondered if these points are indeed zones or levels, and if they are to be watched as closely as the round figure and the 50’s.
Come Sunday I’ll try the same thing with the EUR/USD.
Between now and then, from what I can see, the battle in EU is between 1-3175 resistance and 1-30 ish support:
Interesting to see what way it goes
145th Edit of this post; Does anybody know best place to view the dollar index chart. My trading platform has it’s own dollar index but I believe there is THE dollar index out there somewhere.
146th edit; relax gang, found it, that google thing is great innit? who invented that?
A second floor? HECK YEAH! lol
Sorry I’m a little late to the party guys! HOG I loved the video. Its a great way to see how you are drawing your support and resistance and its also a great way for me to practice my Glasgow accent so I can pick up more chicks hahah… Seems like a great way to log your path to unlimited profit! One thing to note; when looking for s/r lines, note round figures and whole numbers. These can have lots of reactions in the short term and if there was a recent resistance or support formed around these figures WATCH OUT! Being a (slow) student of ICT I should also mention .20 .50 .80 figures are special because institutional and bank level traders use these numbers to enter and exit their positions… If there is a confluence (ict says within 15 pips) of one of these figures as well as some old support and resistance you are cherry!
Sorry have been a little absent, no particular reason for it just lots going on.
Interesting stuff on the S&R, nice video HoG (although having one’s own picture as a desktop wallpaper does smack a little of narcissism, and by the way I know it is cold up there but man you need a shave).
I have been trading, been a nice September, made some good pips riding EUR/AUD up, the cross pairs have had some nice action this month. Am currently short AUD/CAD, EUR/AUD and EUR/CAD, I think, all looking fine so am happy with that.
Anyway, this thread opened with a video. I saw this one a few moments ago and was going to email it to HoG, but then I thought that it is pretty applicable to trading in general, so is pretty relevant to all contributors. Anyway, it struck a chord with me so here it is.
And HoG: this chimes very clearly with some conversations we have had recently, so only watch this when you have just under nine minutes to spare, watch it in one sitting, don’t pause, replay or anything until it has finished, just sit back and listen to the wisdom!
(And apologies if the link does not work - I’m 50-50 at best with such things…)
