Thursday 16 January 2014

READ and S&R Thoughts


Trying to heed to words of several people /blogs I read. To Paraphase "simplicity, prep and context beat convoluted, fancy and intricate"  I think I lost sight of that this morning  particularly updating my prep (S/R levels).
To surmise....

  • I need to mark all RLHs
  • I need to mark all PBLs
  • When price reaches an S/R line.  I can expect 1. a bounce off it. 2. a pause and continuation (likely a SAR). 3. a straight BO/BD (that at some point price will likely come back to test/PC). 4. that I will have to update the S/R level after the test.
  • In an uptrend (HHs/HLs)price will be making the new highs, and these will have to be tested before it reverses.  The with trend PBs will occur at previously passed S/R levels.
  • In an downtrend (LLs/LHs) price will be making the new lows, and these will have to be tested before it reverses.  The with trend RLs will occur at previously passed S/R levels.
  • All I have to do is wait patiently for the levels to be tested before taking a trade. 
  • Then be disciplined enough to take every trade that is triggered AND update the S/R level!



LLsLHs= down trend =  only reverse on test of most recent low
a. Long off touch of prior low and draw new lows
b. Short off touch of PC and draw new highs
c. Long off deep test of prior low and 1.36,  and draw new lows
d. short off test of prior RLH
e. Long on SAR of (d),  draw PBLs
f. HH/HL =  uptrend =  only reverse on test of most recent high
g. Short off test of most recent high (d) draw new highs

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