[kvn]

Hello, I've been trading futures for about a year now, a little more than a month and a half ago I cleaned off my charts and have been trading (scalping) only support/resistance. Horizontal levels that is, no fancy trend lines, shapes, etc. It's actually been the most profitable method for me, however it could use some refinement.

There isn't too much out there that goes into advanced SR that I've found. (I guess maybe because it's a simple concept, buy S, sell R. ) So I was hoping to see what some of the more experienced traders have to say on the subject and share some of my findings as well, if there is enough interest.

I'd like to go into things such as the various ways of finding SR, gauging which levels are more likely to hold, entry timing techniques and so on.

Currently I'm using swing H/L's as SR levels and entering on retracements of breaks as soon as it shows signs that it is holding. For a more aggressive entry I am working on using areas of hesitation instead of swings and entering just on a retracement of a break, before the level shows signs of holding to reduce risk.

If you have something to add, please do, I am very interested in this subject.

[Bearbull]

Infact there is a lot of invaluable info. on S/R, check out the Wyckoff forum

http://www.traderslaboratory.com/for...ance-3878.html

and the Dbphoenix blog.

[brownsfan019]

Welcome kvn to the forum. To get some feedback quicker, I think you'll find that providing screenshots w/ annotations the best way. Here's how to upload charts. I recommend SnagIt for a user friendly screenshot program.

There's some good stuff on TL, but feel free to get your own discussion going about what you use and how. Sometimes just getting another set of eyes on your charts can spark a good discussion.

[kvn]

I have read about every thread in the TA and MP section, as well as suggested books from those threads. A lot of it I do not relate to cut and dry SR. However, that was before I really had a grasp on SR, so it might do me well to check them out again.

If we have any traders that use strictly SR, and I mean just a horizontal line on the chart, following swings, hesitations, etc, that's really what I'm interested in. A lot of walter's work with SR scalps is just what I'm doing but looking to refine with more precision or better entry techniques. If anyone is familiar, any specific recommended reading is appreciated.

Thanks brownsfan, I'll get a chart up. It's just real basic resistance becomes support and vice versa that I'm looking to refine by figuring out the most reliable types of swings/hesitations, etc, ie: 2 swing highs followed by a hesitation on the same level prior to a break seems to make for a decent level to go long at after a retracement.

[brownsfan019]

Interesting chart kvn.

What market is this and what chart setting?

At what point do you enter a trade - the 2nd test, 3rd test, etc?

[Sledge]

Originally Posted by kvn »

I have read about every thread in the TA and MP section, as well as suggested books from those threads. A lot of it I do not relate to cut and dry SR. However, that was before I really had a grasp on SR, so it might do me well to check them out again.

If we have any traders that use strictly SR, and I mean just a horizontal line on the chart, following swings, hesitations, etc, that's really what I'm interested in. A lot of walter's work with SR scalps is just what I'm doing but looking to refine with more precision or better entry techniques. If anyone is familiar, any specific recommended reading is appreciated.

Thanks brownsfan, I'll get a chart up. It's just real basic resistance becomes support and vice versa that I'm looking to refine by figuring out the most reliable types of swings/hesitations, etc, ie: 2 swing highs followed by a hesitation on the same level prior to a break seems to make for a decent level to go long at after a retracement.

Kvn-
Maybe since you are a seasoned S/R trader you could expound to the masses about how bars/candles etc (whatever you happen to use to chart) act around these S/R lines. I think a good healthy discussion on the topic with various viewpoints is in order.

Maybe we can spark a discussion about what you, myself, or other traders "see" when we get to a S/R line and go from there.

As an example: I happen to utilize tick volume (hold off the flames fellow gents) that when a trend is approaching the resistance line, if volume is declining the chances of it breaking that line are slim.

And on and on. We could also discuss price action as a whole around these areas, tricks of the trend etc. One of my favorite is the drop down, rocket up, locking in the early longs.. only to see it return to the same area of Support to re-test.. frustrating the bejeezus out of the uninformed.

Thoughts?!
Aaron

[walterw]

Originally Posted by kvn »

I have read about every thread in the TA and MP section, as well as suggested books from those threads. A lot of it I do not relate to cut and dry SR. However, that was before I really had a grasp on SR, so it might do me well to check them out again.

If we have any traders that use strictly SR, and I mean just a horizontal line on the chart, following swings, hesitations, etc, that's really what I'm interested in. A lot of walter's work with SR scalps is just what I'm doing but looking to refine with more precision or better entry techniques. If anyone is familiar, any specific recommended reading is appreciated.

Thanks brownsfan, I'll get a chart up. It's just real basic resistance becomes support and vice versa that I'm looking to refine by figuring out the most reliable types of swings/hesitations, etc, ie: 2 swing highs followed by a hesitation on the same level prior to a break seems to make for a decent level to go long at after a retracement.

Hi Kvn, that chart there resembles the chimps flips trades... you can check them here http://www.traderslaboratory.com/for...ance-1714.html thats a very solid classic trade where you can take a S&R level switching roles... now the chimp basicly did use his flips on a "momentum" enviroment in order to have a better RRR.... thats my 2 cents in terms of S&R.... cheers Walter.

[kvn]

Originally Posted by Sledge »

Maybe we can spark a discussion about what you, myself, or other traders "see" when we get to a S/R line and go from there.

As an example: I happen to utilize tick volume (hold off the flames fellow gents) that when a trend is approaching the resistance line, if volume is declining the chances of it breaking that line are slim.

That is exactly what I'm looking for. It doesn't really matter what TA you use, the goal is to find out how to objectively identify SR that may potentially be more important than others. I'll see what I can get together to start some discussion.

Originally Posted by walterw »

Hi Kvn, that chart there resembles the chimps flips trades... you can check them here http://www.traderslaboratory.com/for...ance-1714.html thats a very solid classic trade where you can take a S&R level switching roles... now the chimp basicly did use his flips on a "momentum" enviroment in order to have a better RRR.... thats my 2 cents in terms of S&R.... cheers Walter.

Hey Walter, I'm a big fan! Your threads have helped greatly to organize and confirm what I thought I was seeing, I read them weekly. Basically what I'm looking to do is add precision to the flip trade to minimize risk. I might see the charts differently because I have difficulty taking a trade if price only approaches a recently broken S/R level and then turns away. The attachment above is a very common occurrence and I mean price comes back to previous S/R, almost to the tick. You just have to figure out which SR level is most important.

What I saw in your charts was price coming close to previous S/R, but I have been observing price coming within 1 tick of previous S/R often. And I'm trying to figure out how to use this. Ideally, placing a limit order at the recently broken S/R level, expecting a retracement, to minimize risk. But what kind of conditions should there be, how do we know if this particular S/R level is important.

In the attached image, 2 of the 4 trades worked out (2 wins, 1 loss, the last one would have broke-even) because the SL is tight and we ride the winners, it works out. I'm just trying to filter the trades further if possible as not all of the setups are this clear.

By the way, I'm using tick charts as I find they are more accurate in terms of SR than time charts. Depending on which product and time of day, it's anywhere from a 10 to a 100 tick chart. SL's are tight below/above S/R and we trail winners, taking whatever the market will give before another trading opportunity occurs.

P.S. You have to maximize the attachment otherwise you won't see the S/R lines it seems.