bubble: On the daily chart of GBP/USD there is resistance becomes support from July 3,4,5...How relevant would this be for todays low? Or is it just coincidence?

The 4hr chart seems to be in a downtrend now...is this correct? Does it have to exceed the peak from 7/12 2.0363 to resume the uptrend?

PS. I really think this thread is great and I want to learn much more!!

Bubble

Thanks for posting the trades last night.

When you post your entries, please could you add where you placed your initial stop and the reasoning for it's placement. Perhaps also how you trailed your stop as the trade progressed. I am sure you will agree that the way you place / move stops can have a huge difference to your success.

I think it would be a good idea for everyone else to post this additional information as well, when showing your trades. Makes it more meaningfull.

Here is a good recap on S/R

NQoos - Price Action by Buffy

Hi bubble,

Thank you for your effort in this very educative thread. I've been reading and learning so much through this. Here is my attempt to see if I understand about SR correctly. Please correct me if I made mistake here.
At the moment, I have question about what the price is doing and how long a level can be valid as S/R. The 2.0281 line was fine to act as support and resistance. But the last 10 bars price is wobbling around this level, and no longer being exact. So, what would be your consideration in this specific circumstances ? Is 2.0281 no longer a valid level, and should I draw new S&R around this small range ?

Thank you in advance

There is an excellent example just formed on NZDUSD H1 chart. Previous support turned resistance around 0.7720, which we are currently sitting at.

I am now short NZDUSD at 0.7722 with a 0.7740 stop, an excellent risk/reward scenario.

Thanks for clarifying Bubble. Was a great trade anyway, just closed for +114 pips.

Bubble,

I am a bit confused about the confirmation with HTF charts. I see you've posted several 15 minute charts, is that just to show us examples of the price action or are you using 60 min chart for confirmation of the turning point on the 15 min chart?

My understanding of what you are teaching (very simplified version) is as follows, please correct me if I am wrong here:

1. Identify possible turning point (S/R) on 60 min chart by price action.
2. Go to 240 min chart (HTF) and confirm if the same support/resistace area is on the 240 min chart.
3. Once confirmed on the 240 min chart drop back to 60 min chart wait for 2nd or 3rd bounce off the S/R line and then enter when you have confirmation of the reversal with a trend following indicator.

Thanks for your feedback on this.

Dave

Buble,

Thanks for the explanation. That makes it much clearer for me to understand. I had another good day on Tuesday using the S/R methodology +46 pips.

Again...thank you Bubble...keep up the great work in this thread.

Dave

Nice thread i like this lesson
i finish read this thread 2 time
now it time to practice
but i see a confuse which one is a valid setup....
or it's a sideway trend

bubble can you comment my chart

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Hi Bubble,

Just going to post a few examples i have spotted to help me clarify my understanding of this topic.
I have attached some screenshots of one of your recent cable trades. Sorry if i have asked you this sort of thing before, but i was just wondering exactly what gives you the heads up to take the plunge.
We have identified our trend change on the 1hr and we wait for price to come down to our recognised support zone. We have one touch, okay, heads up, one more and we are long.
Now, i remember you saying that you do not like candle patterns, as the market makers know these. But there must be some sort of indication around the second touch to make you feel that price will bounce? In this instance, we could see from the bars that price was finding support again and so that was out entry. Especially when we got the bullish engulfing candle, where we could have entered long on the close of that. I just wondered if you just went long when price hit that level again, regardless of the candles.
My next post will give another recent example i found to ensure i understand.

PS If the last 2 charts are too big could you let me know, and sorry about the clocks!!

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