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Support, Resistance & Chart patterns
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Author:  slipshod [ Sun May 27, 2012 1:30 am ]
Post subject:  Re: Support, Resistance, Chart patterns and an oscillator
Hi Fx, they're roughly analagous to the D and K values in the normal Stochastic indicator. The Stoch rainbow uses iStochastic, but in a hacked way that produces the signals I was looking for.
Author:  mieloo [ Sun May 27, 2012 8:31 am ]
Post subject:  Re: Support, Resistance, Chart patterns and an oscillator
hi slipshod

you put a lot of work and time in this. i want to thank you for the nice and clear charts and explanations. as i usually trade reversals on M5 i was captivated by your strats. i found them really interesting but too complex for my simple mind. too many lines and conditions :)
i was wondering if you believe that they can be traded in a more simpler way. Let's say we have a wedge on H4, just pick a equal sl and tp, let's say 60 pips(i was just picking this value as i dont know how large are your stops on average) and then apply this method of money management: http://www.fortunepalace.co.uk/1324.html
i really liked the patterns , what i want to know is if i can adapt your technique to my style of trading.

thank you again
Author:  slipshod [ Sun May 27, 2012 9:51 am ]
Post subject:  Re: Support, Resistance, Chart patterns and an oscillator
hi meiloo, I'm glad you found the charts & descriptions helpful :)

I do try to keep things as simple as possible, but otoh I find that a reversal pattern is stronger & more reliable to trade if there's other factors contributing, such as the price reaching a clear support/resistance level or trendline.

My money management is basically to enter a bunch of orders when I feel its ready to reverse, place the stop where I think it'll invalidate the trade if its reached, and then set a range of TP levels as I never know how far the price will run & don't want to dictate a fixed amount. With M5 it might be different, as you can see how far the price may usually move on an impulse & plan around that.

I'm not sure about the 1324 method, as that's not money management so much as entry sizes. I'd prefer to take each trade on its own - if its worth trading, its worth doing so with my normal risk size, irrespective of whether I'm having a run of success or stops being hit. Too many stops hit & I'd have to take a step back, analyse what I'm doing and see if I've strayed from the plan.
Author:  mieloo [ Sun May 27, 2012 8:36 pm ]
Post subject:  Re: Support, Resistance, Chart patterns and an oscillator
hello

i understand perfectly that this patterns have to be trade in clear S/R zones, but i believe that every trader with some experience developed in time his own method. i have mine(based on simple study of the past lows or high and some fibo lvls or some fibo clusters) so what i want to better understand is the identifying process and when you choose to enter the trade( this if you want to share some live examples in the next days).

your method of MM is perfect as well , but will not suite me at all and i know that you understand this concept as i'm sure you'll agree that one big factor that makes the difference between profit and loss is adapting your trading style to your personality.

what i was asking above were two things:
1. looking at your past trades what is your stop, on average of course
2. and let's say i will use a TP equal with SL, this would bring me often at least 2 successive good trades. how about 4?

i know that this things can be back tested studying the chart but i would appreciate if you let me take this "shortcut" as you already have a trade history.
thank you and i hope we will study some developing examples this week. i'm sure it will be very helpful exercise for everyone, especially for you :)
Author:  mieloo [ Mon May 28, 2012 10:22 am ]
Post subject:  Re: Support, Resistance, Chart patterns and an oscillator
what about this wedge on usdjpy? i believe it's in concordance with your rules. i used a daily chart because it was easy to see the hole market move. i hope that we agree that we are getting close to one evident support zone between 78.85 and 78.00. how do we prepare for the trade and what we are waiting to happen?
Author:  mieloo [ Mon May 28, 2012 10:45 am ]
Post subject:  Re: Support, Resistance, Chart patterns and an oscillator
what about this?
gbpusd
Author:  slipshod [ Wed May 30, 2012 1:44 pm ]
Post subject:  Re: Support, Resistance, Chart patterns and an oscillator
About a year ago I was made redundant from what I thought was a career software development job, during which time I've been busy learning how to trade successfully. Over the last two weeks I've been tempted by an old friend back into programming, to help him in a startup company he's created.

So all of a sudden my trading and analysis time has pretty much disappeared - I thought I'd be able to balance things, but it hasn't worked out that way so far. However I'll do my best to keep up :)

A quick glance at your chart & I'd have said to expect at the very least a downward test on the previous resistance line. Steep wedges often take a bit of convincing before they reverse, and they're the most likely to fail to reverse at all. Here's some thoughts on its current situation:-
20120530-guh1a.png
20120530-guh1b.png
20120530-guh1c.png
Author:  slipshod [ Wed May 30, 2012 1:53 pm ]
Post subject:  Re: Support, Resistance, Chart patterns and an oscillator
Re USDJPY, yes there's definitely a falling wedge there - very neat & precise pattern actually. So far it shows no sign of wanting to breakout. Perhaps it wants to visit 78.20 & then decide, or get closer to the thin edge of the wedge. Certainly bears watching, but for now, well, the bears are in control :)
Author:  slipshod [ Mon Jun 04, 2012 1:05 am ]
Post subject:  Re: Support, Resistance, Chart patterns and an oscillator
A bunch of chart updates:-

USDCHF
20120604-uchh4.png
AUDCAD
20120604-acdh4.png
AUDUSD
20120604-auh4.png
CADJPY
20120604-cjh4.png
USDJPY
20120604-ujh4.png
Author:  slipshod [ Sat Jun 09, 2012 2:33 pm ]
Post subject:  Re: Support, Resistance, Chart patterns and an oscillator
The pairs I posted before last week's trading, revisited (all H4):-

USDCHF
20120610-uchh4.png
AUDCAD
20120610-acdh4.png
AUDUSD
20120610-auh4.png
USDJPY
20120610-ujh4.png
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