Trade - Trend lines with S&R lines

[Moxy]

The chart show a trade I did today using trendlines and identifying a previous Supply/Demand imbalance area that often results in a sharp bounce area when price returns to the same area.

Any comments are very welcome

[Intunes]

Well done, Moxy.

[Nader Moustafa]

Very well done Moxy,
specially that you shorted according to the larger view trendline.

[Intunes]

Moxy, how did you knew that on 2.0458 it was going down, instead of up ? I mean you had clear that it was going down in your trade, what gave you that info ?

Thanks.

[nick andre]

Originally Posted by Intunes

Moxy, how did you knew that on 2.0458 it was going down, instead of up ? I mean you had clear that it was going down in your trade, what gave you that info ?

Thanks.

well from looking at her chart, looks like 2.0458 was previous support turned resistance..and as price was reaching that resistance, it was also touching a previous trendline which also provided resistance. the confluence of those 2 levels is screamingg to go short as its high-probability price will bounce there.. and its also low-risk as you kno you can place a stop a few pips above resistance. actually there's a slight divergence there if you look at the stochs as well. not the strongest kind, but all of those factors coming together increase the probability of the trade going well.

good job moxy! =D

[Moxy]

Well put Nick_Andre. The combination of those 2 resistance areas gave a good risk/reward setup.

There is one thing especially that I watch out for for this type of trade and that is a previous area where there appears to be an equilibrium between the Bulls and Bears, but when price moves out of that area, it does it with a lot of force which means the equilibrium wasn't really there. In this trade, the Bull's and Bears had a fight but the Bears won and won with a fast price move down which was telling me that when price returns to that area for the first time there is likely to be continuing selling pressure.

I probably haven't explained the method very well so check out this guys articles SAM SEIDEN. He writes a newsletter every week for the online trading academy which explains the technique very clearly. Read all his articles and they always explain the same method that in my limited trading experience results in very very good trade setups.

I have attached some of Sam's charts as an example.

This type of trade and setup are very easy to spot when you are looking for them. Go back over the major pairs for the last 2 weeks. There are plenty of good trades to see.

Hope this helps

One last thing, Nick_Andre.... I'm male not female

[nick andre]

moxy -

first off, sorry! haha. oops. actually there was another word in my original post like "her" or "she".. and then after i went back and said let me take this out, i duno why i assumed this person was female. but i guess i missed one! lol. weird how perception works. your user name is similar to that of a girl i knew on another forum.. the brain does these things automatically. or atleast my brain does haha. sorry again
---
on to your post.. im actually familiar w/ seiden's slides and webinars.. maybe i should ask you, would you ever trade his setups alone?

for example..say you identified that price level of imbalance alone. with nothing else on your charts.. would you have traded it the same way? When i look at past data, it seems like trading those price levels would've produced a losing trade alot of times. I realize no strategy will ever be 100%... but trading those levels alone (selling at supply levels, buying at demand) isnt a strong enough signal.

but, like you put it in your post, those levels coupled w/ other things, such as confluent trendlines, make for good signals.

[Moxy]

I don't just trade these set-up's without considering all other factors that I can identify. The main thing I look for is previous trend-line or S/R areas so I have a confluence of reasons for my trades. I will say though, the area's of S/R identified by Sam's technique often work very well for me. The key setup for me is identifying the area of the Supply/Demand imbalance that resulted in a fast move away from that area and price continued to move in that direction a fairly large amount of pips (eg. GBPJPY would have moved 300-400+ or EURUSD 180-200 +).

[foreigner]

is it "fill in the gaps" trade.i think so

[Moxy]

Originally Posted by foreigner

is it "fill in the gaps" trade.i think so

Not sure what you mean?