For me, I didn’t think of support & resistance as too basic or boring… I just plain didn’t “get” them? I mean I understood the diagrams in the school section and that support is below and resistance is above and price breaks through them or bouces off them. However, figuring out how far back to go, or what timeframe to use, and what if price wasn’t trending, to determine where to draw them and what levels were significant or not, just seemed a mystery to me. Then to be told they weren’t too exact and more like “zones”, which could span a chunk of price, just made them seem too vague for my lack of experience.
So it wasn’t until you reintroduced them to me…prior to your video too … that they are finally starting to make sense, and now I’m seeing them clearer on the charts and able to use them in trading. I even dreamed about them last night…lol.
Yes, this was pretty much my experience too. Plus, the impression I had was that the price might bounce or it might break through and nobody could have the foggiest idea which it’ll do. Hmm, didn’t seem a particularly good basis for a trading plan! Also I felt that indicators were a much more important tool, perhaps because they were given more explanation and left until later in the school. By the way, this is no criticism of the school which I think is excellent - just what I personally came away thinking.
Anyway yes ICT, thanks for another top-notch video. Excellent stuff again. It is falling into place nicely. The four-week exercise is definitely proving worthwhile too; it’s been useful to track what happens to those trades each day and try to figure out why.
Incidentally I’ve been having a play around with demo trading just using support/resistance over the last couple of days while taking a break from the day job. No trading plan… not taking it seriously and even considering whether I’ll win or lose… just seeing what will happen.
Yesterday 107 pip gain. Today 38 pip gain. (Yeah OK, I was under orders to put up a shelving unit today ). I know it could just be luck and really means nothing at all, but those kind of returns were out of the picture completely when I was demoing with indicator-based systems. Oh, and trailing the stop-loss to lock in profit proved useful too. In terms of learning experience, I’m sure having six losses on the trot would be more beneficial - and I’m sure that day will come very soon. :o
Haven’t dreamed about them yet, but guess that will come in time!
Ok I have a question regarding different sessions’ highs/lows.
I don’t quite get when to use them. For instance, as far as I understand, Asia session levels will work for London session, London’s levels for New York, and so on, am I right?
If so, when London ends, New York is already halfway through and more than likely experiences range bound price action. So in this case London levels wouldn’t be of much usefulness for New York session.
Is my logic right here? Or how do we apply each session levels? ICT, I’m also confused with the allowance you talked about after calculating this levels. :rolleyes:
as a practical example, EURUSD just fell to the high of august today as seen in the pic however it a previous broken resistance but untested support. did you or would you trade long on that basis alone or would you have to consider many other factors as well?
The Session Highs and Lows are to be monitored across all sessions in the event they are tested as respective Support and or Resistance. By noting these levels daily as each session begins and ends you will start to see how they “nest” and some levels might not be tested until the following day or two… they are hard or “firm” levels that for whatever reason fundamentally… they produced a short term change in trend.
The point you should come away with thus far is when to look for these levels based on time and trading session. Your answers will come in future material and moreover with you noting these levels on the left side of your charts for now. You need to be comfortable seeing them, then you can anticipate them going forward. I will present examples real time in video format detailing how we use them.
I realize as material is presented it plants new seeds of inquiry… but chew the material in bite sizes… you want to work with the tools and concepts to grow a personal comfort and for a lack of a better description… “feel” and trust that they repeat daily. This is the experience factor, I nor anyone, can teach… it simply has to be put in via time and chart work.
The reason I allow one hour before and after the standard accepted Session opens and closes… permits room for news event driven action, daylight savings and mostly because there is no “exchange” therefore, these times are generalized and not set in stone… so I am flexible and permit the likelihood of a higher high or lower low to form 60 minutes after or before what we all come to understand as Session Openings and Closings.
The majority of the money made is trading the Opens and Closes and while I might see 70% of my London setups form right at 3:00am EST… doesn’t mean I wont take a setup at 2:00am or 4:00am. If I was restricted to simply accepting the rules as 3:00am London, I’d miss the boat on setups at 2:00am and or 4:00am which do form regularly.
I do not trade anything solely on one criteria alone. I demand a confluence of events to materialize at a respective Support or Resistance level. This is the concept of Support & Resistance at it’s true essence… they provide a means of establishing a location in price to anticipate a setup to unfold… by that I mean if other confirming charateristics line up with this level… it validates trade action and you are free to go forward in the Trading Plan to execute a trade.
So to answer your question… it depends on a multitude of factors we will cover as more material is presented. I do trade old resistance as support… and I trade old support as resistance if that is your question.
[/QUOTE]Anyway yes ICT, thanks for another top-notch video. Excellent stuff again. It is falling into place nicely. The four-week exercise is definitely proving worthwhile too; it’s been useful to track what happens to those trades each day and try to figure out why.
Incidentally I’ve been having a play around with demo trading just using support/resistance over the last couple of days while taking a break from the day job. No trading plan… not taking it seriously and even considering whether I’ll win or lose… just seeing what will happen.
Yesterday 107 pip gain. Today 38 pip gain. (Yeah OK, I was under orders to put up a shelving unit today ). I know it could just be luck and really means nothing at all, but those kind of returns were out of the picture completely when I was demoing with indicator-based systems. Oh, and trailing the stop-loss to lock in profit proved useful too. In terms of learning experience, I’m sure having six losses on the trot would be more beneficial - and I’m sure that day will come very soon. :o
Haven’t dreamed about them yet, but guess that will come in time!
Thanks again.[/QUOTE]
Simple sometimes delivers much more than expected huh?
I wish I could analyze forex in my dreams. It would certainly free up time in my awake state unfortunately, med school and its stresses have ceased my ability to dream anymore one of the best things about childhood were the endless vivid dreams and nightmares (can’t have one without the other :p)…ahhh to be young again
Compulsive behaviour…“the behaviour of performing an act persistently and repetitively without it leading to reward or pleasure”…isn’t that what the exercise is all about…the way I should be behaving when it comes to trading …I guess it’s starting to take effect
i myself have not used that line yet because for me it would be more accurate to say “I trade forex, baby. But at the moment my drawdown is too large to be profitable…” :(:o
‘I trade stocks, bonds, and commodities, baby’ seems to work though!!!
LOL!!!
Regards,
Dale.
Edit:
Of course you NEVER mention how BADLY it’s going (that’s a ‘golden rule’) and when it’s going WELL you ‘capitalise’ on it (no pun intended)!!! LOL!!!
Edit 2:
Of course it always helps to ‘pepper’ the conversation with words of phrases like ‘New York Stock Exchange’, ‘Chicago Merc’, ‘Stock Broker’, you get the ‘drift’!!!
Edit 3:
And never forget to ‘blame’ the ‘transitional period’ you’re going through (aka being ‘broke’) on sub-prime and the credit-crunch!!!
unfortunately, med school and its stresses have ceased my ability to dream anymore 
one of the best things about childhood were the endless vivid dreams and nightmares (can’t have one without the other :p)…ahhh to be young again
