Trading S&R using Price Action

MattyMoney · January 10, 2023, 2:45pm

Edit - I have moved this thread from Trading Journals to Trading Systems.

Hello Pipsters and Happy New Year (almost)!

Another year, a new beginning. I have decided to create this new thread to share my main strategy, which is basic support/resistance on 3 different time-frames.

This strategy used areas of S/R on the 4H, 8H & 1D TF’s to enter with the trend. I will not be using any indicators, I’ve wiped my charts clean of them (except for the Performance Indicator at the top Right).

Risk: 1% max per trade.
SL: Just past the S/R levels
TP: TBD

I currently have 2 trades running:

AUDCHF Short:

EURUSD Long:

MattyMoney · December 28, 2022, 12:53am

Broke even on this one. I suspected I would since USD is strengthening.

Opened a short on NZDUSD:

TalonD · December 28, 2022, 1:12am

For TP I would suggest the next higher or lower SR. One method I have had some success with is trading H1 candles inside a D1 respecting SR.

MattyMoney · December 28, 2022, 6:46am

That’s typically what I try to do when there are obvious levels. Otherwise, I will sometimes set a default 1:2 RR just in case of a price surge, or just aim for a 1:1 RR.

Other times I’ll open a hedge position instead of a SL and wait to see if price comes back to give it a second chance, then if it does, close the hedge letting the original position run.

I’ve never really been one to get too focused on RR’s because realistically, the market doesn’t give two s**ts about them. You just have to get the direction right and take what you can get from it. And I’m not really looking to sit on a position for too long.

I will sometimes drop down to H1 to see if I can get a better entry to tighten my SL. But overall I have not had much success with TF’s under 4H.

MattyMoney · December 28, 2022, 3:49pm

This came way too close to hitting my stop, not really sure how it didn’t trigger. Let’s see what happens today.

This one went against me as well and opened my hedge position:

I will attempt to rescue this trade by closing the hedge shortly and placing a new SL above.

Two things to keep in mind with these 2 trades:

I opened AUD and NZD, which correlate for the most part.
I went against the main trend on USDNZD, so the risk was higher.

One thing I did right was because of the correlation my risk was only 0.5% for each trade.

peterrmaxx15 · December 30, 2022, 3:00pm

One method I have had some success with is trading H1 candles inside a D1 respecting SR.

samewise · December 30, 2022, 9:14pm

Can you give an example of this? Thanks!

MattyMoney · December 31, 2022, 2:04am

I will show you an example when I’m back home. Been away for a few days.

MattyMoney · January 6, 2023, 5:03am

Ok, I have a Copper trade running right now using this hedge strategy. Hopefully these screen shots explain it for you:

Price goes against me and triggers hedge position:

Price turns around again and closes my hedge position

The hope is that price continues in my direction and I make millions:

If price turns back down, I’ll let it hit my SL and take the loss, otherwise I’m risking too much for my comfort. But at least it had a second chance, and sometimes it works out well.

MattyMoney · January 5, 2023, 4:17pm

USDJPY 1D - I’m liking the look of this one. Price is at the top of that channel and getting ready to test resistance. Could be a good short but I’ll wait to see how the retest plays out:

MattyMoney · January 6, 2023, 5:03am

Update on the Copper trade that was hedged.

As explained above, the hedge was closed at BE, protecting the trade and leaving the original position to run its course. I’m happy to say this one is now in profit:

MattyMoney · January 10, 2023, 2:35pm

It’s anyone’s guess on what’s going to happen over the next few days. I’m getting conflicting info with my TA on the SPX and the DOW.

SPX 500 is favoring more down side:

DOW is the opposite, but overall trending down:

That strong down channel the SPX is in would be my pick long-term, but I am going to hold off to see what the DOW does today. If it drops back below that SR level then I’ll probably short SPX.

MattyMoney · January 10, 2023, 2:47pm

***I have changed the title of this thread because I am dropping the 8H TF. I am finding it redundant. I mainly focus on Daily, but am also looking at 4H, with weekly for overall direction.

ponponwei · January 10, 2023, 3:55pm

Bookmarking this strategy!

MattyMoney · January 10, 2023, 4:21pm

EURAUD long position opened. I will be watching the 1.567 area for a pullback:

Lines up nicely with the weekly chart where you see price was rejected at that strong SR zone:

I probably should have put my SL below that level, but we’ll see how it plays out.

MattyMoney · January 10, 2023, 4:44pm

Anyone trading indexes, JPY is one to watch:

Going long here would go against my trend trading strategy, but you have to admit, it is tempting.

samewise · January 10, 2023, 4:49pm

So the other trade is working like you SL. Cool!

MattyMoney · January 10, 2023, 5:00pm

Yes sir, the hedge position works just like a SL to help protect the account.

MattyMoney · January 11, 2023, 1:12am

Short order placed at 131.20, just below support. If it breaks downward, I don’t want to miss it:

MattyMoney · January 11, 2023, 1:15am

Buy order on Silver, just above yesterday’s high: