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  1. #1
    Veteran Member Ronnel's Avatar

    How do you read long expiry charts? !!!

    I've taken 3 long expiry live trades (D4, W1, M1). I'm still waiting for one to finish but I think it's a goner. Two which expired lost too. I'm very new to BO and I took the trade when I was just starting to understand S&R (which I still don't fully understand yet). I reanalyzed the charts and saw my mistakes and they were very obvious. I think that there were no big news that may have affected my calculation and it was purely my stupidity. My questions are, is S&R analysis the same for shorter trades like M30, H1, H4 to D4, W1, M1? If there is a bad news like earthquake, tsunami, terrorist attacks, etc., can this affect shorter trades like M15, M30, H1?


    My apologies for my very newbie question.
    Thank you very much guys!

  2. #2
    Legendry Member willyw's Avatar
    Longer timeframe S/R are use for long time could be use for short timeframe. Short timeframe S/R not suitabe to be use for long term.

  3. #3
    Veteran Member Ronnel's Avatar
    Quote Originally Posted by willyw View Post
    Longer timeframe S/R are use for long time could be use for short timeframe. Short timeframe S/R not suitabe to be use for long term.
    That is a great advice. I tried using shorter time frame S&R for longer expiry and it was disastrous.

    PS: I have been trying to comb the forum to read your posts. My favorite is your advice on USD/JPY's characteristics. I also look up to the way you did analysis on long lengths of paper years ago without computers. You must be very-very skilled! I will be reading your posts and will try to learn your tips. Thank you very much willyw!

  4. #4
    Moderator Kolyo's Avatar
    Hi Ronnel,

    Don’t worry Your question is not a newbie question! Actually it is a very serious one.

    First, willyw is right – you can not use short time frame S/R on longer time frame and the opposite is also true in most cases – long term S/R are not exact. For example they are in a wide range of price maybe 20-50 or even 100 pips and you can not use them as a short term S/R. So first thing is to stick with a specific time frame and try to make most of your analysis on it. Than you can check higher time frames but only to see if they are consistent with your time frame, not to take signals from there.

    Important news, including not only major disasters, but also speeches of central bank governors and rate decisions can also affect significantly prices and can push some pairs through a given S/R line without any significant problems. So it is important to follow good news source in your trading and to know that no one method S/R, wave theory, indicators and so on will give you hundred percentage accuracy, only something between 50 and 80% win rate that you have to exploit to make money.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  5. #5
    Active Member hecky3's Avatar
    Hi, I suggest you think about what is happening on the charts. Candles on the shortest time frame are being used to build candles in all higher time frames so any S/R in the higher frames will be reflected in the lower ones. You can expect more work to be needed before s/r is broken, at least.

  6. #6
    Legendry Member willyw's Avatar
    Quote Originally Posted by Ronnel View Post
    That is a great advice. I tried using shorter time frame S&R for longer expiry and it was disastrous.

    PS: I have been trying to comb the forum to read your posts. My favorite is your advice on USD/JPY's characteristics. I also look up to the way you did analysis on long lengths of paper years ago without computers. You must be very-very skilled! I will be reading your posts and will try to learn your tips. Thank you very much willyw!
    Your most welcome, Ronnel. I have been USDJPY since the late 1980s till now. I am a technical trader. If you have any questions feel free to ask. If I miss your post you can send me a PM and I will be glad to answer your questions.

  7. #7
    Veteran Member Ronnel's Avatar
    Quote Originally Posted by Kolyo View Post
    Hi Ronnel,

    Don’t worry Your question is not a newbie question! Actually it is a very serious one.

    First, willyw is right – you can not use short time frame S/R on longer time frame and the opposite is also true in most cases – long term S/R are not exact. For example they are in a wide range of price maybe 20-50 or even 100 pips and you can not use them as a short term S/R. So first thing is to stick with a specific time frame and try to make most of your analysis on it. Than you can check higher time frames but only to see if they are consistent with your time frame, not to take signals from there.

    Important news, including not only major disasters, but also speeches of central bank governors and rate decisions can also affect significantly prices and can push some pairs through a given S/R line without any significant problems. So it is important to follow good news source in your trading and to know that no one method S/R, wave theory, indicators and so on will give you hundred percentage accuracy, only something between 50 and 80% win rate that you have to exploit to make money.
    I had problems jumping from one time frame to another trying to do analysis and often getting opposing results. Example: I'm trying to trade M15. M30 and H1 is consistent with M15 but H4 and D1 is opposing. From now on I will concentrate more on a specific time frame doing analysis and just use the other time frames for reference.

    The last time I calculated my recent demo trading results my percentage got higher. Will try to study more in hope to get better demo results and try to use it on live trading. I really appreciate your advice Kolyo, many thanks!

  8. #8
    Veteran Member Ronnel's Avatar
    Quote Originally Posted by hecky3 View Post
    Hi, I suggest you think about what is happening on the charts. Candles on the shortest time frame are being used to build candles in all higher time frames so any S/R in the higher frames will be reflected in the lower ones. You can expect more work to be needed before s/r is broken, at least.
    Recently I'm beginning to see the candles pattern or build up from lower time frames that are reflected to the higher time frames and vise versa. Actually I only have started noticing this a few days ago. I'm still not good with it but will try my best to learn.

    Candles breaking S/R on a specific time frame is a real problem. Taking reference on different time frames often times shows a clearer picture that the candles will need more work to break the S/R.

    Your advice is golden, many thanks hecky3!

  9. #9
    Veteran Member Ronnel's Avatar
    Quote Originally Posted by willyw View Post
    Your most welcome, Ronnel. I have been USDJPY since the late 1980s till now. I am a technical trader. If you have any questions feel free to ask. If I miss your post you can send me a PM and I will be glad to answer your questions.
    Wow, that is experience!
    Thank you very much willyw!

  10. #10
    Active Member hecky3's Avatar
    Many thanks Ronnel, if you realise that the same data is building every candle on the 1 minute right through to monthly and annual charts then as long as an s/r line holds in one time frame it has to hold in all shorter time frames. If that is not true then the s/r line has been broken. There are usually different trends in different time frames so you can find s/r lines in shorter time frames which do not carry through to higher ones. I hope you follow what I'm trying to say and that it helps you.

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