price reaction to major S/R /TLs and entering on LTFs

“I maintain no accountability for no matter evaluation offered on this thread. It isn't a thread to give indicators however to have interaction like minded merchants preferring simplicity in buying and selling to work together and share their views and technical evaluation.”

I'm right here to train rookies who're combating Technical Evaluation and to be taught from extra superior merchants than me. I've no ego.

I consider within the energy of sharing and the goodness it brings inside. 

This thread could have so many charts for MTFs as detailed as doable. Simply say howdy and share with us.

Peace for all.

Hi there Each one,

What is that this thread about in short?

On this thread I'm going to focus on buying and selling Price Motion with Divergence for affirmation.

This thread is about analyzing Weekly/Every day/H4 and on the lookout for divergence on the entry TF (h4/H1) or decrease for affirmation. In generally,, I will likely be entering primarily based on an anticipated bounce of Weekly/Every day/H4 Sup/Res/Development line. This implies there will likely be Reversal setups. In different instances, I will likely be buying and selling pattern continuation (for instance a brand new contact to a HTF TL).

I consider market repeats itself and there'll all the time be a bounce. I need to enter as "early as doable" after an inexpensive Price Motion construction on decrease TFs. This may permit me to get many of the transfer from the start and on the identical time will allow me to place my cease loss at an inexpensive degree. I might also use a price filter (for ex price has to transfer a sure share or variety of pips from an vital degree)

On this approach of buying and selling, I'm not predicting how far the transfer will go after the bounce. I will likely be entering with couple of tons with completely different targets and trailing my revenue.

With Price motion: I'm going to draw Help/Resistance (Zones) and Development traces on Increased Tfs. I take advantage of each Candlesticks and Heikin Ashi.

With Divergence: You should use any indicator you want like MACD, RSI, Stochastic, RSI, Trix and so on.

For those who generally query your self how far price may go in case of a buying and selling in a retracemnet (in opposition to the major pattern), take a look at earlier corrections and measure them your self. This may enable you to to decide your targets and what to count on. For instance, buying and selling a correction on weekly and day by day will nonetheless deem worthwhile if traded on H1 in case your take into account earlier corrections' strikes.

A few of Price Motion Colleges:

With Price Motion, there's a faculty of thought that may merely put pending orders on an S/R degree (Zones) anticipating some reaction off this degree.

It's a tempting one and by visually backtesting this system, you can find you might be enetring the commerce earlier than anybody else.

However for me, I need a affirmation and an inexpensive degree to put my cease loss. So I would like extra of price construction on Decrease TFs with divergence, a break of a TL or a break of weaker S/R, and so on.. This may give me steerage to the place my cease loss must be.

One other faculty of buying and selling focuses on analysing waves (Elliot waves or Harmonic patterns for ex) and strive to predict the place the general pattern on Increased time frames goes.

I'm not going to talk about waves or harmonics on this thread however will merely focus on price reaction to major S/R /TLs and entering on LTFs. NB: I'm not in opposition to them in any respect. I respect all colleges of Technical Evaluation.

What are the problems with buying and selling anticipated bounces of HTFs Provide/Demand/Development traces?

Probably the most major one is figuring out the degrees. Are they actually good and dependable ones? It's a very subjective factor. How far we should always look again in historical past?
In some case we must be S/R and in different instances Channels or another patterns on HTFs like Broadening formations, Head and shoulders, falling and rising wedges, and so on.. Which one is extra acceptable? Why many PA merchants focus solely on Provide/Demand zones neglecting different vital patterns and pattern traces?
What if there's a divergence in opposition to you on greater time frames. Must you wait or commerce in opposition to them? Once more a really subjective determination to make.

As a matter of truth, finding the important thing ranges is the cornerstone of this thread. I make investments most of my time on figuring out these ranges. I often draw zones. They often get larger or narrower. They're dynamic and not mounted. A divergence signalling a reversal has no that means in any respect if not noticed on a robust degree. Divergence is used for affirmation and will not be the explanation for entry on its personal.
You do not want divergence in case you do not prefer it. That is completely effective and nice. You'll be able to rely on decrease time frames with their PA construction of ranges and pattern traces. That is all you want in case you want it this fashion.

My advise is to preserve it easy. on this methodology of buying and selling I'm presenting right here, you might be getting the momentum or the inertia from the anticipated bounces of key ranges. Go and draw your weekly, day by day and H4 S/R and Trendlines and discover the place you'll have entered on smaller TFs primarily based on divergences or indicators crossing (use any system of yours) or easy break outs of S/R or pattern traces and put what would have been your cease losses and targets. What in case you commerce 0.5 or 1 p.c of your account and cut up this to two or three tons?

NB: "In case you commerce H4/H1 as your entry TF, generally the S/R ranges on the entry TF usually are not that vital.

Foreign exchange Merchants are poor cousins of others like Futures, shares and choices merchants.
due to:
Absence of actual volumes (you may nonetheless use it in foreign exchange however it's a controversial concern).
In shares you may examine any share in opposition to its sector or the general Index
You'll be able to examine the share in opposition to the choices market.
and so on..

A technique to overcome this may be finding out one forex in opposition to different currencies and choose the one which has higher PA.

Price Motion Vs Indicators:

Gerald Appel, George Lane, Welles Wilder, and Ralph Nelson Elliott to title a number of weren't simply fooling others. They're nice merchants and technical analyst gurus who formulated their indicators on paper earlier than computer systems allowed refined programming.

In case you have an ideal system to filter out your entry time-frame, it's completely okay. However please submit the HTF charts as clear as doable with one or two indicators.

If you're new to TA, please learn for John J. Murphy, the daddy of technical evaluation and then develop your data with extra readings. You'll by no means discover a personal course that offers you all the information. Use them to refine your buying and selling expertise not as the entire supply of information.

Once more, you need to use your system to refine your entry and enter as early as doable. Do not give away too many pips nor enter earlier than the commerce matures.

A request to any dealer on this methodology or faculty of thought this thread represents:

Whenever you submit, please Kindly Share with us what do you see on HTFs and give us the complete image. Don't submit one M15 or M5 chart with couple of indicators. We're right here to be taught and train others. If it was a cross of couple of indicators on M5 and M15 that may safe tons of pips, we'd all have been billionaires. I and different merchants won't profit from a posting a single M5 chart. 

Few free to use any indicator(s) so long as you present the complete image with clear S/Rs or Development Strains on HTFs.

For Novices: I strongly urge you to submit and strive to share your evaluation. Shying away is the explanation why you cannot progress. You'll be shocked to discover that your questions and difficulties are additionally shared by extra superior merchants.
The guts of this thread is devoted for schooling.

For Superior merchants: Please submit and let everybody be taught from you and remark on your evaluation.

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