DUBLICATE POST - ALSO AVAILABLE AT THE POST #1 of the thread.
ZONE TRADING RULES. UPDATED APRIL 2008.
I post weekly trading zones for majors on regular basis. Here are some
tips to trade zones, also some explanations follow.
SUP ZONE1 SUP ZONE2 - support zones. Zone 2 is the strongest.
RES ZONE1 RES ZONE2 - resistance zones. Zone 2 is the strongest.
Basically, you look to buy in support zones, and you look to sell in resistance zones.
BUY in support zones when the trend is up,
SELL in resistance zones, when trend is down.
PIN BAR to confirm reversal. On
1 hour chart you look for a pin bar setup to confirm price action reversal, once the price enters
SUP/RES zone. Pin bar is a bar on the chart that has a long protruding wick or so-called nose. PIN bars are a good way of establishing a valid reversal in price action.
Confluence explained.
When weekly/monthly zones are combined for trading, intersection of 2 zones produces the greatest results.
ALMOST 99% of the time price will reverse in the zones that have confluence.
Here are monthly trading zones for april 2008.
| SUP ZONE2 | Trading zones for the month of April 2008 |
| A1 | EUR USD
1,4609
| GBP USD
1,9048
| USD JPY
88,2659
| SPOT GOLD
774
| BUY1 |
| A | 1,4886 | 1,9307 | 91,4900 | 823 | |
| SUP ZONE1 | | | | | |
| B1 | 1,5163 | 1,9565 | 94,7141 | 872 | BUY2 |
| B | 1,5249 | 1,9645 | 95,7100 | 887 | |
| RES ZONE1 | | | | | |
| D | 1,5974 | 2,0322 | 104,1500 | 1015 | SELL2 |
| D1 | 1,6059 | 2,0402 | 105,1459 | 1030 | |
| RES ZONE2 | | | | | |
| E | 1,6336 | 2,0661 | 108,3700 | 1079 | SELL1 |
| E1 | 1,6613 | 2,0919 | 111,5941 | 1128 | |