SupRes Musings

[trendie]

Another attempt to trade Sup and Res:

Using the 30-min S_R MT-4 indicator, I have added the Ichimoku indicator, set to 24/24 for Tenkan and Kijun. I have set all other bits of that indicator to "none" in "colours", to stop them showing, as they're not relevant.

Using the Ichimoku lines as trend-direction, how about trading the Sup/Res points as pullbacks into trend-direction as shown by Ichimoku?

I like the Ichimoku, since when trend slows or goes sideways, the line flatlines rather than whipsaws. This could alert you to a sideways market; certainly cuts down on chop.


I have added a screenshot of a relatively choppy market condition, GU last week, rather than "cheat" and show a perfect trending one.

EDIT: I havent backtested this. But thought I would throw this out there to see what reaction I got.

 

[fifty2aces]

Why not just draw horizontal lines at price levels which have been significant in the past?

As for "alerting you to a sideways market" - look at the chart - if price starts in the bottom left and finishes in the top right, it's going up. If it starts in the top left and finishes in the bottom right it's going down. Otherwise it's probably some combination of the two.

 

[50pips]

Another attempt to trade Sup and Res:

Using the 30-min S_R MT-4 indicator, I have added the Ichimoku indicator, set to 24/24 for Tenkan and Kijun. I have set all other bits of that indicator to "none" in "colours", to stop them showing, as they're not relevant.

Using the Ichimoku lines as trend-direction, how about trading the Sup/Res points as pullbacks into trend-direction as shown by Ichimoku?

I like the Ichimoku, since when trend slows or goes sideways, the line flatlines rather than whipsaws. This could alert you to a sideways market; certainly cuts down on chop.


I have added a screenshot of a relatively choppy market condition, GU last week, rather than "cheat" and show a perfect trending one.

EDIT: I havent backtested this. But thought I would throw this out there to see what reaction I got.

That is one hell of a messy and unnecessary chart in order to play support and resistance levels.

I trade a lot of these plays and it is one of the easiest plays to make.

Forget the ching chong thingy mabob indicator.

Just look at your 1hr and 4 hr charts for already made support and resistance levels draw in those levels wait for price to reach them and scale down to the lower time frames such has the 15 minute or 5 minute chart nothing shorter!

Look for the reversal and bobs your uncle. Or you can wait for the reversal to happen on the higher frames the choice is yours.

Here is my cable trade from last week. Yes yes I know its a historical example, but follow my journal and you will see trades like this and other methods applied in real time.