Thread: Drawing correct resistance and support-lines

Update on audusd.

Refer to above chart,

-throughout asian session it handled a high and low of approximately 100 pips.
-the ave daily range of EJ is 150 pips.
-therefore the breakout in the low of london session may at least retrace to asia high.
-and breaking over asia high would indicate finishing its ave daily range of roughly 150 pips. Which in this instance it did. It fell back during the NY session after finishing its daily range.

How can I understand the London low is actually the low?
Simply because throughout the London session it break the asia low.

How can I understand the NY high is actually the high of the day?
Counting in the lowest point of this day, it has proceeded approximately 180 pips, therefore likelihood of it going higher is slim.


I dont commerce throughout the asia session lot, however the price action during this time gives significant tips and turning points. There are cases not frequently in which the pair finishes it ordinary daily range within the session, then instances where breakouts on either extremes are not useful. A retracement is likely.

Your fav pair is GJ ? LOL I have encounters with this pair, maybe not all bad however. If I exchange this pair, I would go in just NY beginning, so I can see where it has been through the 2 sessions.

For me I will just trade GJ on intense moves, eg GJ breaking from a pattern at precisely the same time exceeding ASIA amounts from the NY session.

I think GJ moves around 200-300 pips a day?

Its about getting a good feel of it, healthy instinct is demanded I guess.
You might come across the high and lows of the different sessions useful. Should give some clues to how far it can go. Its up to your creativity.

Regards

mARK

Originally Posted by ;

Refer to above chart,

-during asian session it handled a high and low of about 100 pips.
-the ave daily range of EJ is 150 pips.
-therefore the breakout from the reduced of london session could at least retrace to asia high.
-and - breaking above asia high would indicate completing its ave daily range of about 150 pips. Which it did. It dropped back after completing its own daily range.

How do I understand the London non is actually the low?
Simply because during the London session it never break the asia low.

How can I understand the NY high is actually the top of the day?
Counting from the lowest point of the day, it's moved about 180 pips, therefore probability of it moving higher is slender.


I dont commerce during the asia session lot, however the price action during this time gives important tips and turning points. There are cases not often in which the specific pair finishes it average daily range inside the session, then cases where breakouts on either extremes are not useful. A retracement is more likely.

Your fav pair is GJ ? LOL I have experiences on this pair, maybe not all bad however. Even if I trade this pair, I would usually go in after NY start, so I could see where it's been during the past 2 sessions.

For me personally I will only trade GJ on intense movements, eg GJ breaking out of a pattern at the same time violating ASIA levels from the NY session.

I think GJ moves around 200-300 pips each day?

Its all about getting a fantastic feel of it, healthy intuition is required I guess.
You might come across the high and lows of the various sessions useful. Should give some hints. Its up to your creativity.

Regards

mARK

Thanks for sharing this with us. It gave appetite to me to dig into this. As stated, I haven't paid much attention about Asia session, TBH.

I also see the value of knowing if a pair is exhausted when it comes to a vital breakout stage. This little method could help

About gbp/jpy, I started out with this pair and dropped alot also haha. But I never gave it up, since I saw the potential that was great in it.

Time for UJ to head back into 108 area

Originally Posted by ;

The average daily range is just one more concept in technical analysis, it's been discussed in some threads here as well. It is most likely under utilized. I find it free to line drawing. Not needing to go off subject, see how this recent triangle breakout can be taken with more confidence if you take into account the following simple facts:

- USD/CHF typically averages more than 100 pips a day ( 24 hr period )
- over we have a triangle which breaks from a 30 plus pip range during asian session, thus we can safely project a potential move in the direction of the break of 30 to 80 pips depending on how you handle your trade.

Mainly its about trying to sense the market, something such as trying to predetermine whether if the break is worth taking, and if taken to what extend can you expect it to proceed? Regrettably there is no exact points to follow in this estimation. Practice is essential. Like uses fibs and pivots in combination with trendlines, this is used by me.

And of coz there are weekly, monthly, yearly ranges to consider also.

Simple?

MARK

Hello Mark, what a great info u had here. U really did enlighten us, at least for me personally, with ur avg daily range and connecting it with breakouts. For breakout trading I learn how to spot breakout and confirm the validity of breakout. But now I learnt from u another component of breakout trading, which will be an estimation of discovering the strength/potential of a breakout and it can be implemented to if the breakout is worth accepting Thanks for ur contribution.

Oops, we have 2 Mark here now. .

Gd trading on all
Yuna

Wild Horse(GJ) is ranging now. She's now resting to collect more energy to resume it's downtrend if 203.50 fails to hold. But on the upside if 205.50 does not hold, we're looking for a retracement to 207 area. JMHO

Gd trading

Yuna

Originally Posted by ;

Time to get UJ to return into 108 area

Agree, believe we have pretty much similar chart on daily.Weekly chart state exactly the same as daily.

Originally Posted by ;

Wild Horse(GJ) is available today. She is currently resting to collect more power to restart it's downtrend if 203.50 fails to hold. However, on the upside if 205.50 doesn't hold, we're looking for a retracement to 207 place. JMHO

Gd trading

Yuna

Your right about 203.50 and 205.50. I'm looking for a retrace to 208.47 area (50% fib on 4h), next goal 213 (in case 203.50 place holds of course).

Do not pay too much focus on smaller tf's, however if price breakout out of this 15m pennants, we ought to see a drop down to 203.60 place along with a break to the upside might generate more buyings, IMO.


Update: Broken, lets see whether 15m can generate a few pips

Originally Posted by ;

Your right about 203.50 and 205.50. I am trying to find a retrace to 208.47 region (50 percent fib on 4h), next target 213 (in case 203.50 place holds of course).

Thank you

btw, u mean if 203.50 holds, u will be going long?? Wont't wait for a rest above and see whether it holds?

Anyway I need ur help here, this can be an hrly chart of USD/CHF does my upper trendline appear valid? (the bold one in pink) I ask because the points tt connects the line doesn't seem strong. I drew it because it had been obvious.



Thank you Beforehand,

Yuna