September 29, 2013
Hi Theo and everyone else!
I have just stumbled across this site via the thread in babypips. I really like this approach to trading. I have some limited experience of trading in the past, and always found simple things like price action and candlesticks suit me best.
I am really impressed with the amount of free software etc that you are giving away. I have a few questions about the support/resistance boxes that are drawn though:
1) From my past reading/experience, I thought support resistance levels were at a single price point rather than a range - is this correct?
2) How is the upper and lower parts of each support/resistance bar calculated. What is the meaning of the upper and lower edge (if any), or is the bar just seen as a general region in which support/resistance may occur?
3) I noticed that a key point seemed to be missing - around 1.44466 on EUR/AUD 4H - which seems to have been a strong support and resistance level since Aug 2013, with 2 taps on top and 3 on bottom side, but this wasn't highlighted by the EA - I guess because the support/resistance goes back some way into history? So I guess there is still a need to check levels manually?
On the converse, some of the levels it highlights don't seem to be particularly significant at all when looking back - I guess these are new (potential) support/resistance levels? Or bottom of pullbacks in trend?
Despite my only partial understanding of what the indicators are doing, I have still found your approach to be very helpful. I particularly like the conservative TP level idea - and I can see a 1:1 RR is still fine as long as you are getting more than 50% correct.
Sorry for the delay, I am in the process of switching country for the Winter.
If you review your chart history you will see that it is actually not that common for price to react at the exact same pip, it does happen here and there but it is much more common for the area of S/R to be a small range. This allows for the exact Double Tap and 3 Point Turn setups to be all encompassed.Â
The size of the box will depend generally on the size of the wick on the Candle that initially created it, more powerful reaction means thicker box basically
The area you have marked out on your Chart is a Mirror Flip S/R area, whilst my latest version of this Indicator does include the Mirror Flips, the Free Members version has not yet been updated and does not. The current version you are using will look above and to the left of price, and below and to the left of price for areas that have not been broken yet.
Hope that helps and welcome to the Forum,
October 28, 2013
To add to James's remarks and question...hopefully allowed as it is a funny way of representing the world of S/R levels.
To me they have been explained as a kind of " bear-belly". So if you approach it, depending on the strength and push forward. You will penetrate deeper in the bear belly sometimes. With less force your poke won't be that impressive.So it's not a fixed point but more or less a zone. You will get bounced anyhow.
So keep in mind: S/R = bear belly = zone.
Cheers and keep the pips floating.
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