SR/SD and the PA that describes it

GoldenFinger · Post by **GoldenFinger** » Thu Oct 27, 2016 8:45 am

the support just turn into resistance, there are selling in the wedge, smart money (aka someone in the know) sell at the weak retrace after the breakout of the line, 'coincidentally' hitting all the early seller stop or induce some buyers to catch the falling knife before the drop.

as for what tf it is, i don't have time to look into it at the moment, but price is fractal, the same formation formed in tick chart to monthly chart over and over again

simond · Post by **simond** » Thu Oct 27, 2016 9:06 am

GoldenFinger » Thu Oct 27, 2016 8:45 am wrote:the support just turn into resistance, there are selling in the wedge, smart money (aka someone in the know) sell at the weak retrace after the breakout of the line, 'coincidentally' hitting all the early seller stop or induce some buyers to catch the falling knife before the drop.

as for what tf it is, i don't have time to look into it at the moment, but price is fractal, the same formation formed in tick chart to monthly chart over and over again

Apologies, just to be sure - the first paragraph in my response referred to your original question and chart regarding USDCAD.

But, if you're describing the chart I posted minus instrument name or TF then yes, it's showing essentially what I'm aiming to do, which is use SR to gauge "direction" then utilise SD to gauge entry. More importantly though it's expressing the fractal nature of market structure, which you've pointed out. In other words it's market structure that dictates entry/exit/position sizing etc etc, not wider stops or a specifically longer time in trades etc.

dapperdan · Post by **dapperdan** » Fri Oct 28, 2016 3:01 am

Cool topic. I don't trade this way but this is really interesting to read. I don't visit here very often but good to read some cool stuff when I do.

simond · Post by **simond** » Fri Oct 28, 2016 8:46 am

EURJPY has reached quite a nice area for selling (check all the way to the left, which is not shown on this chart). It's even putting in some bearish PA. But there's a reason I won't sell this just yet. Anyone care to have a stab at why?

EURJPYM30.png

Post by **DerPat** » Fri Oct 28, 2016 12:18 pm

Liked your question. I am not good on those lower time frames. I see prices on Monthly, Weekly, Daily and sometimes H4, H1 charts. All indicating a possible tiny bit north and then Red Dot = Short if price action tells or green dot = long if price action tells. Would both be valid. As per my currency strength analysis of the morning, I would not short anything against JPY or long anything against EUR for today. So EURJPY, if anything as I do not see a good entry point as of no, is more in a long mood for today and maybe the beginning of the next week.

Bildschirmfoto eurjpy.png

simond · Post by **simond** » Fri Oct 28, 2016 1:16 pm

DerPat » Fri Oct 28, 2016 12:18 pm wrote: I do not see a good entry point as of no,

Me neither.

In terms of why I didn't short this morning:

Price looked quite overbought, it was high on the curve, touching a historical untested supply zone, and giving a decent bearish PA. To all intents and purposes that's a potential sell signal my side, however, price also made a bull-flag before going in, and the one thing we know about bull-flags is that they contain lots of potential support. Pattern recognition without the underlying context can be lethal. But pattern recognition together with gauging the underlying context can really help trading confidence, and even if I end up sat on the fence a while, at least I avoid trading silly losses.

EURJPYM30.png

GoldenFinger · Post by **GoldenFinger** » Fri Oct 28, 2016 1:52 pm

eurjpy still have at least 60 more pips to go , there are some place in the chart which are like a magnet, once u see it, everything is clear as blue sky, the area price approaching is very predictable, the captain jack thread is really a gem, don't missed out.

simond · Post by **simond** » Fri Oct 28, 2016 2:05 pm

GoldenFinger » Fri Oct 28, 2016 1:52 pm wrote:eurjpy still have at least 60 more pips to go

Can u post a chart to illustrate this?

GoldenFinger · Post by **GoldenFinger** » Wed Nov 02, 2016 3:55 am

Hi simond, apology for the late reply, i had a bad day yesterday, I have annotated the way I read pa, on a different pair though, but u get the rough idea, i am open to any exchange of ideas

simond · Post by **simond** » Wed Nov 02, 2016 9:38 am

GoldenFinger » Wed Nov 02, 2016 3:55 am wrote:Hi simond, apology for the late reply

No apology needed for the late reply but it's not going to be possible to have a constructive dialogue unless you stick to the point.

I posted a EURJPY chart the other day together with some comments to which you replied, "eurjpy still have at least 60 more pips to go ".

I can only ask one more time, please validate your comment with a chart.