I know this is old hat...

Rooster34 · Mar 28, 2011

I wish stuff soaked into my brain faster

I've been focused solely on trying to figure out support and resistance trading, and trying to understand how to tell if the levels will hold. Every one of y'all who have been trading for a while are going to laugh at this but it's a big epiphany for me.

It's the break of S/R and the first retest.
This hit me on a 4hr chart/ i scrolled down to a 1 min chart and watched it. Just blew me away.

Rooster34 · Mar 28, 2011

Rooster34 said:
I wish stuff soaked into my brain faster
I've been focused solely on trying to figure out support and resistance trading, and trying to understand how to tell if the levels will hold. Every one of y'all who have been trading for a while are going to laugh at this but it's a big epiphany for me.

It's the break of S/R and the first retest.
This hit me on a 4hr chart/ i scrolled down to a 1 min chart and watched it. Just blew me away.

So simple, now that i'm scrolling back over charts I see it happen again and again.

wackypete2 · Mar 28, 2011

Hit ya light a lightbulb? lol
Thats why I like 1m and 5m charts. If you get 1-2 pip spreads you can scalp those areas over and over again all day long for a few pips each time. It gets a bit intensive after a while but you can get some nice days!

Peter

Rooster34 · Mar 28, 2011

wackypete2 said:
Hit ya light a lightbulb? lol
Thats why I like 1m and 5m charts. If you get 1-2 pip spreads you can scalp those areas over and over again all day long for a few pips each time. It gets a bit intensive after a while but you can get some nice days!

Peter

Hit me like a lightbulb delivery truck Pete, and I've read it a million times, I have an old book on channels that talked about the first retest after a line was broken, I've read how many live calls that the poster mentioned the retest........

Time to start testing vigerously

trader_dante · Mar 28, 2011

Rooster34 said:
I wish stuff soaked into my brain faster
I've been focused solely on trying to figure out support and resistance trading, and trying to understand how to tell if the levels will hold. Every one of y'all who have been trading for a while are going to laugh at this but it's a big epiphany for me.

It's the break of S/R and the first retest.
This hit me on a 4hr chart/ i scrolled down to a 1 min chart and watched it. Just blew me away.

You have made an excellent observation, Rooster.

It is simple but highly effective.

There are several other techniques that help you determine with high probability whether price will hold a level or not.

In my opinion, most of these relate to the concept of time.

But I will let you test one theory at a time first ;-)

Greenlight · Mar 28, 2011

Thanks Rooster I didn't know about this technique, great post..

Rooster34 · Mar 28, 2011

trader_dante said:
You have made an excellent observation, Rooster.

It is simple but highly effective.

There are several other techniques that help you determine with high probability whether price will hold a level or not.

In my opinion, most of these relate to the concept of time.

But I will let you test one theory at a time first ;-)[/QUOTE]

Lol. Good, Im alwas one step away from brain liquifaction anyway

Rooster34 · Mar 30, 2011

Just pulled out a scalp in the asian session with this technique, resulted in a 6.6 pip win in a matter of about 20 minutes of chart time. the important part is this, I had a 4 pip stop so a 1.5R win. I had to wait for the setup but it was very very simple.

GumRai · Mar 30, 2011

Rooster34 said:
Just pulled out a scalp in the asian session with this technique, resulted in a 6.6 pip win in a matter of about 20 minutes of chart time. the important part is this, I had a 4 pip stop so a 1.5R win. I had to wait for the setup but it was very very simple.

Can you post a chart?

I find horizontal S/R levels to be much more reliable than sloping trendlines.
Do you use candlestick patterns to decide whether to enter a trade or not?

Rooster34 · Mar 30, 2011

GumRai, yes I've found that horizontal S/R is about the most accurate thing out there.
First chart was the area of congestion on the 5m chart, the box represents the area I was looking at, the second chart is the actuall one minute chart i took th trade on. it broke below the support, held, retagged almost to the exact pip of the low of the previous zone, I entered when the price continued past the low of the candle that retested the area. The green arrows denote a win and the trndline was a clue that it might just break the low of the area.
Enjoy

Rooster34 · Mar 30, 2011

Rooster34 said:
GumRai, yes I've found that horizontal S/R is about the most accurate thing out there.
First chart was the area of congestion on the 5m chart, the box represents the area I was looking at, the second chart is the actuall one minute chart i took th trade on. it broke below the support, held, retagged almost to the exact pip of the low of the previous zone, I entered when the price continued past the low of the candle that retested the area. The green arrows denote a win and the trndline was a clue that it might just break the low of the area.
Enjoy

on the first chart you notice that a little bit later there was a really good retest of the area, would hav made for a really nice trade, but i was done for the day.

megamuel · Mar 30, 2011

What is the "technique" you are referring to? Using smaller time frames or waiting for a re-test? Or both?

Sam.

Rooster34 · Mar 30, 2011

Waiting for a s/r line to be broken then retested.

Rooster34 · Mar 30, 2011

I was on a 1m chart simply because of the time of day. And lower timeframe could possibly offer a better stop. So if I was trading the dailys I might drop down to the 4hr for an entry/stop placement. For the record I prefer the longer time frames. I'm just experimenting with s/r.

I know this is old hat...

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