Support and Resistance

This is another chart on S/R on a 1 minute time frame, the price stalls for about 15 minutes before the price breaks in favour of the sellers, about 3 hours later the buyers have a chance to get out close to break even, These buyers earlier normally become sellers so pushing price down again but as I have said before there are no guarantees, it can be hard to get in on a move that has already been going for hours , but these are the entries I am looking for, my stops will be as tight as possible, and the trade must go my way immediately, I am looking to keep my losses to less than 7 pips. When looking at different time frames they can contradict each other so I always look at lots of time frames from weekly too 1 minute,      Dave .

follow up to s/r daily charts

This is the follow up to my first blog, regarding support and resistance,the chart above is on a daily chart, the same chart patterns apply to all time frames ,but the zone, can be 100 pips or so,for me personaly my heart could not take such big swings, as I use very tight stops which i will talk about in a blog soon Dave

support/resistance

This is my first post on this blog.  I would like to talk about support and resistance,
as I think this is the most important part of price action that can be seen in charts.
If you look at the two charts above, you can see the long tails on the candles on the top chart just before the break to the top side.  These tails were caused by traders selling from prior high on the left side of  the chart and new traders looking for a double top.  When the break came, it was a 55 pip move in 5 mins, trapping traders who did not use a tight stop or worse again, no stop at all into a loosing trade. On the first time back to this break area about 9 hours later, these traders had their first chance to get out at breakeven or a small lose so these sellers became buyers and with new buy orders, causing prices to rise.  These areas give a trader a higher probability trade but with no guarantees, ie big news events which can cause chaos.  How long the areas last, depends on volume and market sentiment like trends but all areas get broken.  Generally, the first and second time back, being strongest but even these can be broken, so caution is always needed.  Hoping this post will help. Sorry about clarity of charts. I will work on this. Dave