Help Learning TA for noobs

[raul12]

Thank you for explaining, Now I can see what you are trying to say.

One more thing I should point out:

* Whenever there's a failed breakout it only reinforces the S/R or the existing TL.

Also from pure Price Action(PA) perspective:
In this case the failed breakout could also have been seen as a double top (at point B) and that level provided a pretty good R. Later price crossed past this R level at C and then the same double top R level later acted as a S and the price went up after minor retracement at D.

You could have entered long position at D with a tgt profit level being the difference of Pt D level - SL2 level

 

[NewBottle]

One more thing I should point out:

* Whenever there's a failed breakout it only reinforces the S/R or the existing TL.

Also from pure Price Action(PA) perspective:
In this case the failed breakout could also have been seen as a double top (at point B) and that level provided a pretty good R. Later price crossed past this R level at C and then the same double top R level later acted as a S and the price went up after minor retracement at D.

You could have entered long position at D with a tgt profit level being the difference of Pt D level - SL2 level

Great observations Raul, I agree better entry point here is C OR D, D is better as it became a strong support.

The only problem with this setup is my capital, It cannot afford a 100 Point SL. With 1% SL strategy I am max allowed to put 20P SL while trading in Mini Contracts. I completely agree with your analysis here as it makes much better sense, also what would you suggest my strategy should be enter at C or D with SL of 20P?

 

[raul12]

Great observations Raul, I agree better entry point here is C OR D, D is better as it became a strong support.

The only problem with this setup is my capital, It cannot afford a 100 Point SL. With 1% SL strategy I am max allowed to put 20P SL while trading in Mini Contracts. I completely agree with your analysis here as it makes much better sense, also what would you suggest my strategy should be enter at C or D with SL of 20P?

I never mentioned the SL level in my post Newbottle. I simply mentioned that this long trade at D wud have been a potential 110 point trade!
*assuming point D = 3240 and SL2 = 3130.

Ideally I would have entered long just after seeing bullish pin bar candle just above D. So you enter long, in the next candle, slightly above the high of that candle with a small stop loss being below the low of D. So now you can see that we're not talking about 100 P SL but merely 10-15Pt SL which will fit your money management.

Whether C or D : depends on the trader. C is for aggressive traders while D is for more conservative ones. I fit in the latter hence I wud have entered at D.

 

[raul12]

Raul now coming to the trading part. I remember you told me from previous post that we should not trade as the price is falling.

My question here is Price is in uptrend on higher time frames and this could be a small rally, as I am following Teach A Man to Fish ( Saint PDF, Which I assume you have read). It suggest to buy at every rally which is against the trend.

Since saint is not here anymore and doesn't answer post's this question was long wandering in my mind how do I decide the rally will end and when.

So I came across falling wedge pattern, now if the pattern is a confirmed falling wedge and Trend is up on higher time frame, would you or experts here suggest trading keeping a Strict SL just below the Wedge trend line?

I remember you told me from previous post that we should not trade as the price is falling.

That was the comment only from existing TF. I was not aware of higher TFs.


would you or experts here suggest trading keeping a Strict SL just below the Wedge trend line?

Yes you can trade long if higher TF trend is up by keeping strict SL.
The idea is to mostly TRADE WITH(OR IN THE DIRECTION OF) THE HIGHER TF TREND

 

[NewBottle]

I never mentioned the SL level in my post Newbottle. I simply mentioned that this long trade at D wud have been a potential 110 point trade!
*assuming point D = 3240 and SL2 = 3130.

Ideally I would have entered long just after seeing bullish pin bar candle just above D. So you enter long, in the next candle, slightly above the high of that candle with a small stop loss being below the low of D. So now you can see that we're not talking about 100 P SL but merely 10-15Pt SL which will fit your money management.

Whether C or D : depends on the trader. C is for aggressive traders while D is for more conservative ones. I fit in the latter hence I wud have entered at D.

Very nicely explained thank you

 

[narangji]

:thumb: raul, thank you.

 

[narangji]

Support and Resistance

Hi

I have finished support and resistance, I have consulted various books and study material

I was wondering how to implement S/R in objectivity

Q1. Let's say I mark support and resistance for chart today and then I mark them again tomorrow and the day after and this procedure keeps on running
(Please note that I am making major ones where its very visual price is getting rejected or getting strong support)

My Personal observation: Price always halts at every major S OR R no matter how old it is, i dont mean it is impenetrable but i observe candles do slow down or some pressure

Now the problem: I end up having too many S and R on a chart. Although I find it very helpful If I don't delete them but it gets too Clustered.

So I am looking for help from experts on how to use S/R in objectivity ( how would you personally overcome this issue) any idea's and suggestions are welcome to over come this issue.

 

[raul12]

Support and Resistance

Hi

I have finished support and resistance, I have consulted various books and study material

I was wondering how to implement S/R in objectivity

Q1. Let's say I mark support and resistance for chart today and then I mark them again tomorrow and the day after and this procedure keeps on running
(Please note that I am making major ones where its very visual price is getting rejected or getting strong support)

My Personal observation: Price always halts at every major S OR R no matter how old it is, i dont mean it is impenetrable but i observe candles do slow down or some pressure

Now the problem: I end up having too many S and R on a chart. Although I find it very helpful If I don't delete them but it gets too Clustered.

So I am looking for help from experts on how to use S/R in objectivity ( how would you personally overcome this issue) any idea's and suggestions are welcome to over come this issue.

Pls share a chart , with markings of all the S/R levels which you feel should be considered. That way we'll be able to understand better.

 

[narangji]

Pls share a chart , with markings of all the S/R levels which you feel should be considered. That way we'll be able to understand better.

Marking charts would get very complicated, I will try though.

It may lead to loads of images


FYI: I am marking S/R according to YTC L.Beggs.

 

[narangji]

Ok this would have been my S/R identified areas in chart, I marked them day by day as the candles formed.

The chart is 11th till 19th march



Questions for this chart?

Are my S/R Levels correct or close?

Can u suggest any improvements the way I am doing it?

I will post chart for 20th onwards again and explain how i am finding it helpful to keep old S/R even with less influence but leads to loads of clutter.