S/R Trading

[G550]

Hello All-

I've decided to start a thread in hopes of attracting some participation. I know there are a number of other worthy threads on here that have been started by members with far more experience than myself, but I hope that I can contribute my thoughts and further invoke other members to contribute their ideas as well.

I just started live trading this week after having demo/paper trading for 3 months. I generally trade GBP/USD and trade based off of support and resistance levels. I look at RSI and MACD here and there but usually shy away from other indicators. Nothing wrong with them, I just like to keep it simple. That's not to say I would never use them though

So I encourage all who have time and interest to chime in and either critique my positions, offer their own, or discuss strategies in general. My ultimate goal is to learn as I am very green when it comes to FX. That being said, it has developed into an immense passion in the last few months. I hope that I can continue my success from demo trading and hear some great thoughts and ideas from the fellow members here at Moneytec.

One final thing I would like to ask of those that choose to participate. I do not hide my strategy or style of trading or whatever. For those that do, that is fine. I do not question anyone that does so. I fully understand. However as one of my goals in establishing this thread, I would like to learn from others as well. This cannot happen if the communication is restricted. So if anyone would like to post their ideas here, perhaps a simple reason (broke support or resistance level here or there) as to where the trade is being placed would be helpful. I hope I'm not asking too much.

Sorry for the long post, but I'll be back later with my long/short positions. Unless someone else beats me to it!

Thank you and please, please, please participate. I look forward to this very much!!!

-G550

[G550]

One thing I'd like to ask for those that trade cable is this: what do you find the optimum s/l to be? I know this is all personal and relative to risk and such, but putting that aside, what do you figure is a reasonable s/l? 40 pips? 50? More?

Thanks.

[SoundFX]

Congrats on live trading, G550! Welcome to the FXworld of heartache, triumph, pain, joy, embarrassment, and mostly....boredom!

As far as stops, IMO, you should ALWAYS use the market's latest important S/R as a stop. When the market breaks these barriers, its telling you something. I find it completely arbitrary to have a fixed-pip stop. It will usually stop out your good trades more often than filtering out the bad ones.

Anyhoo, best of luck!

-S

[G550]

Originally Posted by SoundFX

Congrats on live trading, G550! Welcome to the FXworld of heartache, triumph, pain, joy, embarrassment, and mostly....boredom!

As far as stops, IMO, you should ALWAYS use the market's latest important S/R as a stop. When the market breaks these barriers, its telling you something. I find it completely arbitrary to have a fixed-pip stop. It will usually stop out your good trades more often than filtering out the bad ones.

Anyhoo, best of luck!

-S

Thanks for chiming in, Sound! I miss your EZ bake calls, dude. And I like your last post on the Iris thread. It makes a lot of sense.

You're right about the stop levels. I got stopped out on a couple of positions this week only to find it reverse. They sure are right about the psychology of trading live. I got a little discouraged and wanted to go long at 9480 but didn't want three losers in a row. Now look what happend. Fortunately, my losses were only losses because my stops were perhaps too tight. It really is a function of my $1000 acct balance.

But I hope we can communicate (either on this thread or yours) much more in the future. I respect your opinions and we share a similar trading style. Thanks again for dropping in!

[G550]

GBP/USD:
Long: 9652
Short: 9578
Long is based on a break further away from the high of the last week at 9642, which was reached today. This is also beyond the 61.8 fibo line so an upward move would be suggestive. Short position is based off of some previous s/r levels and plays below the 61.8 fibo line. Break through this level could entice further decline to 9545 initially, then further below 9500 beyond that.
GBP/JPY:

Noticing a possible descending triangle forming. Top of triangle is just under 238. Baseline is at approx 235.35. I know we're not quite near this yet, but the way this pair moves it could happen soon. Once I figure out how to upload screen shots, I'll do so.
I would look for a fade off of the descending line around the 238 level. Will keep an eye on this in the upcoming days.
Ok, that's all I have for now. Hope it wasn't too verbose. Let's see what happens.

Comments are welcomed!!!

[G550]

Attached is the GBP/JPY descending triangle I was referring to.

[apfx]

Here are some latest scan results based on PF re. S/R levels

[apfx]

AUDJPY
It would look good if resistance broke