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Natural Support and Resistance
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Author:  websouth [ Mon Sep 17, 2012 2:26 pm ]
Post subject:  Re: Natural Support and Resistance
You can do the same thing with trend lines but the wave emphasizes certain aspects more than others...
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Author:  GT3RS [ Mon Sep 17, 2012 4:48 pm ]
Post subject:  Re: Natural Support and Resistance
Thanks for the explanations. When you talk about waves, are you referring to Elliott Waves? I've never been able to get my head around them - seems very subjective to me, but I would say that since I don't "get" them!

Or do you literally mean just looking for impulsive and corrective waves by eyeball only?

I notice you trade Gold a lot [or at least that's what's on your charts!]. Is there a reason for that? Does it behave particularly well in respect of the waves?

I'll try to post some charts for your comments. I'm not afraid of making a fool of myself in the name of learning!

Thanks again,

Rob
Author:  GT3RS [ Mon Sep 17, 2012 5:03 pm ]
Post subject:  Re: Natural Support and Resistance
How about this? I haven't taken impulsive/corrective waves into account, simply because they aren't clear to me!!
Author:  GT3RS [ Mon Sep 17, 2012 7:29 pm ]
Post subject:  Re: Natural Support and Resistance
Been studying some more.............!!

Would I be right in saying the very best trades [highest probability] are from a retest of the outside edge of the wave?
Author:  websouth [ Tue Sep 18, 2012 1:17 am ]
Post subject:  Re: Natural Support and Resistance
GT3RS wrote:Thanks for the explanations. When you talk about waves, are you referring to Elliott Waves?
not really. Yes I agree can be subjective. One man's "3" is another man's "5"
GT3RS wrote:Or do you literally mean just looking for impulsive and corrective waves by eyeball only?
yes - this is what I mean. Think like zig zag indicator. Long push, short push, long push, short push, etc. Impulsive, corrective, impulsive, corrective. Always searching for support or resistance to change the direction of impulsive.

GT3RS wrote: I notice you trade Gold a lot or at least that's what's on your charts!. Is there a reason for that? Does it behave particularly well in respect of the waves?
no reason. I am kinda perma-bull on gold that is all. This idea works on any instrument and/or time frame since it is just moving averages or echoes of price.
GT3RS wrote: I'll try to post some charts for your comments. I'm not afraid of making a fool of myself in the name of learning!

Would I be right in saying the very best trades [highest probability] are from a retest of the outside edge of the wave?
Feel free to post. Maybe the potential to be close to a top or bottom is higher where you are suggesting...not sure. Only thing that really can be controlled is your stop since no crystal ball exists and stop/risk tolerance is different for everyone. Think of this "wave" as a framework. To me it shows very likely places for support/resistance.
Author:  websouth [ Tue Sep 18, 2012 1:31 am ]
Post subject:  Re: Natural Support and Resistance
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Author:  Zypip [ Tue Sep 18, 2012 7:37 am ]
Post subject:  Re: Natural Support and Resistance
websouth wrote:
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Hi websouth,

Really like the visuals on your setup, very visually pleasing and it really helps to get a feel of your trading environement.

You said in one of your previous posts, I quote "Breakouts fail a large percentage of the time so the best is exhaustion @ a compression line".

I was just wondering whether you were using any other indi or info to get an appreciation of the exhaustion of a run....maybe TMA slope could be helpful.

Thanks for sharing anyway,

Zyp
Author:  websouth [ Tue Sep 18, 2012 2:02 pm ]
Post subject:  Re: Natural Support and Resistance
Zypip wrote:
You said in one of your previous posts, I quote "Breakouts fail a large percentage of the time so the best is exhaustion @ a compression line".

I was just wondering whether you were using any other indi or info to get an appreciation of the exhaustion of a run....maybe TMA slope could be helpful.



Zyp
No I don't use anything else... to me all the info is there but you could of course.

When does price start going down >> when it stops going up. So an easy way to visualize this for me is to use a 5ema envelope of highs and lows. When you think impulsive, corrective, impulsive. Price will overshoot the 5ema of highs, become overextended and then correct back into the envelope. I didn't compare these 2 pictures I just drew the points of interest. Should be similar. The wave just gives a little more structure imho.
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Author:  GT3RS [ Fri Sep 21, 2012 7:32 pm ]
Post subject:  Re: Natural Support and Resistance
This thread seems to have been overlooked.

However, I believe there is pure gold in your teachings Websouth!

I have been studying all week, watching in real time and also reviewing the action at the end of each day.

There are many ways that these EMAs give "structure" to price movement.

One I'm focusing on to start with is when tests of the outer edges of the wave.

Then I plan on looking closely at areas of confluence.

I strongly recommend you throw this on a chart and study it for a good while. Watch it in real time as well.

Thank you so much for sharing!
Author:  GT3RS [ Sat Sep 22, 2012 2:41 pm ]
Post subject:  Re: Natural Support and Resistance
Are the "hard" edges the most reliable?
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