Has Support Or Resistance Been Broken ?

[hagadol]

Spend most of the day watching and checking the main FX pairs:

When I see a significant support or resistance level I am always unsure as to if this has been broken, when price shots through it.

How many times does price shoot through it, only to come back and hang around that level or reverse.

Any suggestions on making this decision ?

HaGadol

 

[TWI]

I would look at Interest Rates and Stock Indices to see if there is confirmation. Sometimes this can really help, but not always.
Otherwise, you gotta take the break and just exercise good money management. Getting stopped out is part of the game. Maybe await confirmation of the break by giving a margin above or below the level or waiting a certain time. I don't do that, I just take the break.
Also better be disciplined with the stop. It goes in as the trade is taken.
All day, everyday I scratch trades, thing is to not them them run against you and when you get on a break that's right, hang in there. Much easier said than done for sure.
It is very easy to stare at a breakout wondering if it will be a whipsaw and never take a position, pulling the trigger is just as important IMO as any other aspect of trading for me it was originally the hardest hurdle to cross.
All this is only possible of course if you have confidence in your methodology in the first place. If that is not there then you will lose anyway.

 

[SOCRATES]

When it does what you say it is doing it is hakatan.
When it stops and does what it was not doing and
really does what yo expect it to do it is hagadol.
Zehakellal. Obvious isn't it ?
All else mahsefut.
It is not a bad idea either to do a hakafa round the garden,
and then you may strike mazaltov,
Just be patient.
All good things come to those who wait.
Liela tov.
And don't discuss this with anyone.

 

[TWI]

"And don't discuss this with anyone."

You mean, you really think they would have a clue what he was going on about?
I think he is more likely to be sectioned.

 

[hagadol]

Socrates

I am totally in the dark as to what you mean.

HaGadol

 

[SOCRATES]

The riddle unscrambled

Socrates

I am totally in the dark as to what you mean.

HaGadol

OK, sorry, I will explain to you.

Gadol in Hebrew means big or great.
Ha means the.
Therefore HaGadol or Hagadol means
" The Tall One" or "The Great One"
On seeing your post I thought you were an Israeli,
as obviously you are not I will unscamble it for you.

It means:~

When it does what you say it is doing, it is making small moves,
when it stops and does what it was not doing and,
really does what you expect it to do, these are big moves,
that is the rule, Obvious isn't it ?
it is not a bad idea either to go for a walk around the garden,
and then you may strike good luck,
Just be patient,
all good things come to those who wait,
Good night.
And don't discuss this with anyone.

The above advice is offered because markets cannot be forced
to do what you want them to do when you want them.
It is therefore imperative to take stock of a situation,
and if necessary abstain, until a worthwhile opportunity
presents itself that merits your attention.
The most difficult part of this profession to many people
is recognising this fact, and acting accordingly.

I wish you very good luck and every success with your trading.
And what twalker says to you above is perfectly correct also.

 

[Newtron Bomb]

Hagadol

Some things you need to bear in mind when looking at the FX spot market;

1) the current market climate. There is no trending market conditions on GBP or Eur (assuming you are only looking at these two pairs) therefore you can assume that there are no significant trends as the market consolidates and the minor trends that do happen are short lived and choppy.

2) Not all TA works all of the time. So it is safe to assume that a trend line will not always work and considering the markets are not trending particularly well it is a fair bet to assume that trend lines will not provide a precise guide in your daily analysis.

3) FX spot market has no single market place. (unlike globex for FX futures for example) This accounts for the price discrepancies from provider to provider and broker to broker. Esignal for example provides FX spot data which is an average price of 200 data providers where as your broker will quote you their current bid on a chart. (usually)

A broker will give you "THEIR" price which included their fee (yes you do pay fee for spot FX but its upfront in the spread)

So knowing this when your trend line is broken ther may be some overlap as a result of the different prices that every spot trader see's and as a result interprets to trade. We are only talking a few pips but thats all it takes.

I hope this helps you view what you see slightly differntly adn take some other things into consideration

Regards
Newtron Bomb

Spend most of the day watching and checking the main FX pairs:

When I see a significant support or resistance level I am always unsure as to if this has been broken, when price shots through it.

How many times does price shoot through it, only to come back and hang around that level or reverse.

Any suggestions on making this decision ?

HaGadol

 

[tradesmart]

Hagadol,

Positive/Negative divergence on RSI/CCI when the price hits a prior support/resistance level gives a good guide as to whether that S/R will hold.

As shown on the attached chart, simply taking PD/ND entries has led to some very good reliable trades today, clearly showing entry and exit…

HTH

 

[darktone]

Spend most of the day watching and checking the main FX pairs:

When I see a significant support or resistance level I am always unsure as to if this has been broken, when price shots through it.

How many times does price shoot through it, only to come back and hang around that level or reverse.

Any suggestions on making this decision ?

HaGadol

You dont say much about how and what time frames your trading hagadol but i suspect your looking at the smaller timeframes. If this is the case id suggest you focus on the larger time frames to gauge how oversold/overbought we are (congestion/patterns/failing trends etc) then goto the smaller timeframes for your entry.

Understanding price action can be difficult for some (like ME! only just getting to grips to with it after nearly 5 years ) and it constantly changes (another fact ive had trouble accepting).

As said in post 2 you must be able to pull the trigger, its all to easy to see a big BO and sit there watching, its human nature to want trade the next BO 50 pips away (and more than likely get whipped) , have to fight what u feel .

Not all TA works all of the time

aint that the truth!


There where some very nice BO today both where very playable with very small stops. I played the E BO and i wont embarrass myself by telling you where i exited :lol