Comprehensive Trading System/Methodology

[babymush]

I roughly get what you mean. Will read through it again and get back if I have any questions.

Thank you very much.

Please post more of your support and resistance drawings if you have any so that I can learn. Tried finding for Bubbles thread but it seems to be deleted for the drawings.

 

[babymush]

By the way, I seem to be very bad in finding SBR or RBS ...

For example this chart, where is the potential SBR or RBS for re entry setups?

 

[bbmac]

After the Hl on the trend t/f chart and with 5min in an uptrend you can see how price found support at the previous most obvious swing hi=previous res=potential sbr when approached from topside...the 0815am 1min Re-ent 1 set-up at a HL on the 5min chart intio it's uptrend, was a high probability entry/set-up that saw a HH in the 5min uptrend +30pips+ gain before a sell-off. Note too that although 30min macd was below axis it and the 1hr was pointing up at entry.

Price has found resistance again in the 1hr pot resistance zone highlighted a few posts ago.

 

[bbmac]

I've re-sized your chart, the area a would have been the first potential sbr area in the downtrend, since exceeded to the upside, now with a HL the area b would be next potential sbr zone on that chart but remember any re-ent set-up there on t/f below would be at at least a H on this chart into it's downtrend, or possibly a HH dependant on how price action develops- after the HL so not optimum in terms of trend re-entry.

 

[bbmac]

I've pointed to the area above area b as another potential sbr/res area as price had found support there a few times before a downside break


In determining most probable potential sbr always ask yourself

a. where offered most support before downside break
b. where is the most confluence re other factors

 

[babymush]

HEre are the areas I have identified in the 1 hour chart for potential SUpport or Resistance

Please correct if I am wrong.

 

[bbmac]

HEre are the areas I have identified in the 1 hour chart for potential SUpport or Resistance

Please correct if I am wrong.

That is one horrible chart, lol. Too much detail , too busy and no needs to highlight every little swing particularly as, as price action develops if the swing is not a very obvious one it is the most recent/immediate price is most likley to find supp/res/sbr/rbs at. not ones that far back.

My 1hr potential supp/res/sbr/rbs looks as below...areas x and y look like they may offer potential sbr, area x being a previous minor swing lo that acted as sbr in the downtrend resulting in a minor previpous swing hi. Area y looking to have seen various tests as support=swing lo's.

If a new uptrend developes after the HL then the area shown by the orange dotted lines would be first potential rbs. (area z)

 

[babymush]

Would you still take a re entry setup if it develops after breaking through Z as the X is very close to being a resistance level?

 

[babymush]

By the way, really wonder what your screen looks like ... Lol ... Do you use 3 moniters? or just 1? And if it is 1, how do you fit so many different charts in ...

 

[Dentalfloss]

bbmac
a happy new year to you and the family.another very prosperous one in store for you
a question: trend continuation entries
on youre methodology you wait for a pullback to show reverse divergence.
1.when do these occur in the trend.?
do they occur on the first wave up/down.? second or even third
by the time the trend is showing reverse divergence,how much have you missed out.?
waht sort of follow thru do you get when entering.ie do you get a big chunk of thet trend or do you get the rump end.?
thanks

 

[bbmac]

Would you still take a re entry setup if it develops after breaking through Z as the X is very close to being a resistance level?

Area Z is potential res on that t/f being a previous swing hi, area X is potential sbr but any re-entry set-up on the time frame below is unlikely now...it is also only a minor swi ng lo area (although it did act as sbr to produce a minor LH before a new down-swing with the downtrend)

As there is unlikley to be a re-entry set-up at point X on the time frame below, the next re-entry set-up is likley to be on the 1hr time frame itself, this would require potential sbr on the 4hr chart and such a set-up would be a supporting set-up to any reversal set-ups that might occur on the time frames i use.

 

[bbmac]

By the way, really wonder what your screen looks like ... Lol ... Do you use 3 moniters? or just 1? And if it is 1, how do you fit so many different charts in ...

screen 6...30min and 1hr main chart and Newsfeed minimised on sound alert
screen 5...Fibs (main 1hr moves and intraday move) charts
screen 4... 1hr potential supp/res/sbr/rbs ie previous swing hi/lo zones marked with horizontal lines, dealing station maximied when in a trade, Dealing ticket always on show
screen 3...1min main chart (3/4) 1min small chart (1/4 top) 5min small chart (1/4bottom)
screen 2...5min main chart
screen 1... 15min main chart (3/4) and 15min small chart (1/4)

 

[bbmac]

bbmac
a happy new year to you and the family.another very prosperous one in store for you
a question: trend continuation entries
on youre methodology you wait for a pullback to show reverse divergence.
1.when do these occur in the trend.?
do they occur on the first wave up/down.? second or even third
by the time the trend is showing reverse divergence,how much have you missed out.?
waht sort of follow thru do you get when entering.ie do you get a big chunk of thet trend or do you get the rump end.?
thanks

Hi Dentist, thankyou and compliments of the season to you and yours also.

I await a pullback in a pre-identified trend re peak/valley price action analysis...such a trend to exist on at least the 5min t/f...better if on above as well. I will have pre-identified potential sbr/rbs first on the intermediate 5min t/f then if applicable on the trend t/f and await a set-up...a 1min re-entry set-up at the 5min pot sbr/rbs zone or a 5min re-entry set-up at the 1hr pot sbr/rbs zone (timed as a 1min reversal set-up)

I ensure that if re-entering a trend the pullback and set-up occurs at a HlLor H in a downtrend LL or L in an uptrend on the chart it sets-up on and the chart into whose trend the re-entry is sought.

I also ensure that the macd histograms are with the trend direction on at least the 2 time frames above the set-up.

The set-up consists of hidden/reverse divergence and band deviation.

Trends as you know move in impulsive (with trend) and corrective (anti-trend ) waves, the re-entry set-ups can occur after any corrective wave. Elliot Wave theory suggests that impulse waves 3 and 5 are the strongest so I guess following that theory the best re-entry set-ups are after corrective waves 2 and 4?

I don't tend to folow that and act only when the tech conditions are at their optimum;

a. Trend exists on at least next t/f
2. macd histograms 'with' proposed trade direction on next 2 t/f's
c. pullback and set-up at a pre-identified potential sbr/rbs zone
d. set-up occurs at a LH/H or HL/L on both time frame it appears on and thhe one whose trend is being entered.

These optimum conditions have the highest probability of a with trend follow thru to a Ll in a downtrend or Hh in an uptrend. by entering at the top/bottom of the pullback you are optimising your take from the trend.

 

[babymush]

Just wondering. GBPUSD is now in a potential area of resistance ... Would you take a trade if a Bullish Reversal Occurs?

 

[bbmac]

Just wondering. GBPUSD is now in a potential area of resistance ... Would you take a trade if a Bullish Reversal Occurs?

Price has actually broken above the 1hr previous swing hi [=previous resistance=potential resistance when approached from underside] shown as zone a, now finding resistance at the previous 1hr minor swing low at point b.

point c shows the nearest potential support zone on the 1hr

I would act on a clear Reversal set-up (s) at a pre-identified potential sbr/res zone, and in this situiation a Bearish reversal set-up would be required

 

[babymush]

BB would like to chk something with you. Do you look at the 1 min chart to find the initial setup or do you look at the 5 mins to look for the initial setup before looking for supporting setups?

THank you

 

[babymush]

Sorry for asking you so many questions today.

Please see picture for the question Thank you

P.S. You have never really talked about how you used the small charts or did I miss it out in your guides ?

 

[babymush]

Sorry another question ... Off from work today and was thinking hard about the system 2 Pictures

 

[babymush]

Last one for today

 

[bbmac]

Sorry for asking you so many questions today.

Please see picture for the question Thank you

P.S. You have never really talked about how you used the small charts or did I miss it out in your guides ?

I don't really see the area you refer to unless it's the candle in the place you have circled??

Remember a potential RBS area generally consists of a previous obvious swing hi [=previous resistance] breeched to the upside and tested again in a pullback from the top side [as potential rbs]...but any potential rbs area has to be considered in the context of trend, ie only really valid if the time frame on which it is identified is trending...similarly and conversely for a potential SBR area in a downtrend.

As for the small charts, they and their use are discussed in both the DTS/M main pdf doc on post 1/page 1 and the Part I doc on post 74/page 10.