Hi Rick, I always trade Sup. Res. It starts off as Supply &...

  1. 338 Posts.
    Hi Rick, I always trade Sup. Res. It starts off as Supply & Demand. What I look for is
    a Bullish candle with a higher high than the next big Bear candle. They can be a couple
    of candles apart. I don't trade the big move down but hope for a quick return to the zone
    marked in blue where I wait for a possible short entry. If it plays out I take the trade and
    that area now becomes a Res. zone. Ditto for the bottom, which becomes Sup.
    I trade the range for as long as possible , if there is a break above or below I then wait
    for a retest of the breakout point for possible trades. They sometimes don't come back
    so I look for another zone further down or up, whatever the case may be. It could also be on
    the 1H chart. I make up my initial zones on Sundays on Daily 4H & 1H charts. so there
    are plenty of trades to be found. Because I only trade Asia I like to get an entry between 7am
    and 5 - 7 pm. If the charts show an entry set-up happened overnight I will enter on opening
    candle, if the overnight move isn't too big. Didn't like the big gap down on EURCAD this
    morning so will watch it for a while. Like you say could be short, could be long, if it breaks
    above Res. Using a TDI indicator now to replace the RSI and AO. does the same job and
    is better with divergence. I can't remember the name of the website where I downloaded
    from, but the guy was using it trading pivot levels and after using it for a few months it
    works well.
    EC 1H & 4H chart
    EURCADH1.png
    EURCADH4.png
 
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