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Support and Resistance

how to apply pitchfork and auto pitchfork studyPitchfork , is a technical indicator for a quick and easy way for traders to identify possible levels of support and resistance of an asset's price. It is presents and based on the idea that the market is geometric and cyclical in nature   * Developed by Alan Andrews, so sometimes called Andrews’ Pitchfork   * It is created by placing three points at the end of previous trends   * Schiff and Modified Pitchfork is a technical analysis tool derived from Andrews' Pitchfork In general, traders will purchase the asset when the price falls near the support of either the center trendline or the lowest trendline. Conversely, they'll sell the asset when it approaches the resistance of either the center line or the highest trendline. █  Usage Tips :   * Andrews' Pitchfork (Original) best fit in a Strong Trending Market   * Schiff and Modified Pitchfork better with Correcting or Sideways Market. Modified Pitchfork is almost identical to a Parallel Chanel Step By Step Applying Pitchfork Auto Pitchfork Study ʙʏ DGT ☼☾ Besides Auto Pitchfork Pivot, Support and Resistance plotting, study also includes Auto Fibonacci Retracement Levels and Zig Zag indicator Link to the Auto Pitchfork ʙʏ DGT ☼☾ :
Education
by dgtrd
194
Support & Resistance Continuation Setup ( Low Risk Setup )Support & Resistance Continuation Setup is a low-risk setup where you can ride along with the trend. As a family reminder, the trend is your friend. All it takes to do this setup is a trendline, zones and the formation of the candle or Price Action. What we need to look for is a continuation formation of the candlesticks which is, Rally-Base-Rally (RBR) for uptrend continuation setup and Drop-Base-Drop for downtrend continuation setup. The SOP for this setup is : - Draw 2 points or 2 touches of the trendline (You can draw it from Wick-To-Wick or Body-To-Body). - Look for Strong Resistance or Strong Support. - Look for continuation formation of the candlesticks. If there is no one of the listed SOP above on the chart, the possibility of the price reacting the way we predict is dropped below 50% immediately. To counter this problem, if your plan is to buy, you can sell it instead once the price making a breakout of the zone and making a pullback into the zone and vice versa. From my personal view, this is the easiest setup for beginners to learn. All credit goes to by the name of Bystra. P.S, sorry for my bad English. Have fun and good luck! :)
Education
by PipsXAnalysis
How and where to place Orders, Stop Losses and Take ProfitsHey TradingViewers! How's it all going! Following on from our Trading Support and Resistant Series, here's How and where to place Orders, Stop Losses and Take Profits. If you've been following the previous posts (When Support becomes Resistance, and Resistance becomes Support and How to identify trades using Support and Resistance) you'll notice we're using the same chart to place our orders, stop losses and take profits, and also, as we're responsible traders, the reasons why we're placing them where we are. So let's do this! We're going to use Trade Setup "a" as our example here. We've identified why we're going to place this SHORT here, those reasons were: It was quite significantly rejected from Line 0 The counter move from Line 2 wasn't able to surpass Line 0 and didn't create a higher high Constant rejection from the Line 1 downtrend line So we place a SHORT order, and at this point we'll also place a Stop Loss. For any beginners out there, a Stop Loss order will close your trade if the price moves against you too much. You specify where to place the Stop Loss and they're important because without using a Stop Loss, you can risk losing an unlimited potential. So now we know what a Stop Loss is, where shall i put it? If you put it too close to your initial entry, you run the risk of stopping your position out, too far and you run the risk of losing money unnecessarily. Which brings us back to our Support and Resistance lines from the first Tutorial and the reasons why we entered the trade in the first place. The price has failed to breach Line 0, which is your Top Level of Resistance, and is currently under the Line 1 downtrend. If i wanted to be safe and give my trade the greatest chance of success, i'm going to place it above where the market can't currently get past, and for us in this instance, that's Line 0. I also place it above Line 0 and not on it. Now if the market is to catch our Stop Loss, it would first have to break Line 1, and turn Line 0 into Support which is unlikely considering the reasons we used to entry the trade initially! (I told you the reasons are important!) Now we have our Stop Loss set, let's take a look at Take Profits. As a general rule of thumb, when SHORTING your Take Profits will occur at areas of SUPPORT, and when LONGING, your Take Profits will occur at areas of RESISTANCE. Since we're shorting, we're going to look for an area of support. And what did we discover was an area of support? When price has moved significantly counter to the current trend , which for us in this instance, is our first Take profit zone, or Line 2. If we look further down the chart we see all of our Take Profits are at the corresponding support levels, TP1 is close to Line 2, TP2 is close to Line 3 and TP3 is close to Line 4. And why are they placed here? Because price has moved significantly counter to the current trend . Let's look a little closer here, TP1, TP2 and TP3 are all above the Support lines, why is that? That's because putting your Take Profits at the very base of support reduces your likelihood of your TP being fulfilled. In the event of a swift reversal, the price may not touch support before riding much higher, erasing those well deserved gains. So now you're probably saying "I can place a trade, a stop loss and take profits. I have good reasons why i'm doing all those things, but when do i close?". The reasons for me to close a SHORT are the same as when i see a reason to open a LONG on the same currency PAIR. Likewise, i'd close a LONG when i see a reason to open a SHORT. Lucky for us, we have two opportunities to close this trade in profit, as well as create further profit by creating a LONG entry. Let's take a look at Trade Setup "d". If you're not sure what this is referring to, it's the reasons for entering the trade on my post "How to identify trades using Support and Resistance". At "d" we saw this as a potential trend reversal for these reasons: Line 4 Is an upward trending line which has been tested and has moved significantly counter to the current trend each time it has been visited. Line 1 has now been breached and is acting as Support, signalling that the price is not going to continue downwards. So if we think about it, we're in a profitable SHORT, but we have strong reasons to believe a reversal is in progress. If i'm being cautious, and to maximise my profits, i'll close this trade here at CLOSE 1. Sure, but isn't it possible the trade get's rejected by Line 3 and heads further down? And it is, and that is a Traders Trade Off (TM). You are trading the known for the unknown, all the while being in profit. If you were looking for more certainty then of course, you'd wait to see how market behaved once it reached Line 3. In this instance, trade setup "e" is a very strong LONG position (reasons in the previous post), and as such, i would close my SHORT at CLOSE 2. Thank you all for your time, i hope that it's been helpful, For_The_Many
Education
by For_The_Many
12
How to identify trades using Support and ResistanceHey TradingViewers! How's it all going! In my previous post called When Support becomes Resistance, and Resistance becomes Support we identified where to place support, resistance and trend lines. Following on from this, we're going to identify where the best places are to execute a trade. This post will identify trade setups, as well as the reason we're going to execute these trades where we are. This is the most important thing to remember, you should always have a reason and supporting arguments as to why you're opening a trade. Opening a trade without having supporting arguments is like driving a car for the first time, you can probably do it, and you *might* be fine, but it's dangerous. Additionally, if you start your analysis with the reasons why you're executing a trade, you begin a cycle of thinking before you trade. It stops any rash decisions, as well as giving you the opportunity to review trades that may not have gone your way. For example, perhaps your stop loss was too tight, or you bought at support, which was very close to resistance. If you're trading without any specific reason, you can't reflect and say i did this because of X. So let's get to the chart. I'm using the exact same chart as my Support becomes Resistance, and Resistance becomes Support tutorial. As you can see I have placed either a tick, cross or "-" sign at specific entry points. On the chart, i have found 5 possible trade setups, these are identified using the tick and "-". The crosses indicate areas i would not place a trade. Let's go through these one by one, starting at the letter a. There are two "-" signs identified on this chart, at "a" and at "d". These are valid trades, although they carry a higher level of risk than those with a tick, hence why i've made them separate entries. Trade Setup "a" I would consider a SHORT at "a" because of the following reasons: It was quite significantly rejected from Line 0 The counter move from Line 2 wasn't able to surpass Line 0 and didn't create a higher high Constant rejection from the Line 1 downtrend line I would not consider a SHORT at "a" because of this one very reason: The Line 2 support could have held and pushed the price above Line 0 and reverse the trend. Trade Setup "b" I like b for many reasons, and this is why there is a tick. Those reasons are: At "b" the price is currently under: Line 0 - Top Level Resistance Line 1 - Downward Trend line Resistance Line 2 - Secondary Resistance As well as being under each of the resistance areas, you can see it tried to push itself past line 2 (which was support), and failed. As we recognised from "When Support becomes Resistance, and Resistance becomes Support", the level which was once support is now resistance. For these reasons, i would place a SHORT at "b". Trade Setup "c" Similarily to Trade Setup "b", "c" has all the exact reasons i would place a SHORT . These are: Line 0 - Top Level Resistance Line 1 - Downward Trend line Resistance Line 2 - Secondary Resistance Although now, it's under the Line 3 Support turned Resistance. Another reason why a SHORT is viable here. For these reasons, i would place a SHORT at "c". Trade Setup "d" So this is the first of our LONG trade opportunities. As with "a", this is labelled with a "-". This is again because it carries a higher level of risk. I would consider a LONG at "d" because of the following reasons: Line 4 Is an upward trending line which has been tested and has moved significantly counter to the current trend each time it has been visited. Line 1 has now been breached and is acting as Support, signalling that the price is not going to continue downwards. I would not consider a LONG at "d" because of this one very reason: It is under all of the remaining resistances in Line 0, Line 2 and Line 3. Trade Setup "e" As with Trade Setup "b", there is a lot of things to like about a LONG position at Trade Setup "e". These are: Line 4 is acting as support, being tested multiple times and each time, has moved significantly counter to the current trend Line 1 is no longer acting as resistance, and therefore is support Price has pushed past line 3 and is resistance turned support. For these reasons, i would place a LONG at "e". I hope that has helped clarify where i place trades where i do, and most importantly the reasons i do. So now we've identified areas we like, and the reasons behind them, let's look at where to place the order, stop loss and take profits in the link below named "How and where to place Orders, Stop Losses and Take Profits"
Education
by For_The_Many
When Support becomes Resistance, and Resistance becomes SupportHey TradingViewers! How's it all going! I was planning my upcoming trades for this week and came across a great example of When Support becomes Resistance, and Resistance becomes Support! I'll explain why i place each of the levels, and why i place them where i do, why that's important and perhaps most importantly, how to trade it! So let's get to it. I've labelled each of the support, resistance and trend lines with a number starting 0, ending at 5. Let's begin with 0. I place line 0, simply put, where the price has not been able to push any higher. I place it above the price action, and extend right. This will be our top level resistance. Line 1 is our downward trend line. I start the line above Line 0 and draw it so that it crosses the tops of the rejected candles. I extend it down and to the right. The reason i place it across the tops of the rejected candles is because each time the price has hit this line, it's been rejected, which is a good sign you have a true resistance trend line. Line 2 is the first or our horizontal supports. i determine there is support here as price has moved significantly counter to the current trend . I begin the line near to the open or low of the candle, and extend right. Line 3 is the second of our horizontal supports, and you guessed it, it's been added because price has moved significantly counter to the current trend , and as line 2, I begin the line near to the open or low of the candle, and extend right. Line 4 is an interesting one, and something to take especial notice of. Line 4 is the first trend line which is uptrending. The reason this is important is that it could be a strong signal that a trend reversal is coming. I place the start of the line at the point, (that's right, you guessed again), where price has moved significantly counter to the current trend , and i extend right, connecting the higher lows. Line 5 is an extension of Line 3, and a great visual representation of resistance turning into support. But what are the circles? WHY ARE THERE CIRCLES? The circles are to identify (in multiple instances) where support has turned into resistance, as in Line 2 and Line 3, and resistance has turned into support, as in Line 5 and also the cross of lines 1 and 4. So i'm sure some of you are now asking: "Okay so i know how to place support, resistance and trend lines but how does that help me? Where's the profit in all of this?" Well I'm glad you asked and it's in a link in the Related Ideas below, called How to identify trades using Support and Resistance. Thank you all for your time, i hope that it's been helpful, For_The_Many
Education
by For_The_Many
7
HOW-TO: What happens after a completed Elliott 5 Wave sequenceIn this "How To" video, we take a look at typically what happens after a completed Elliott 5 Wave sequence, using the MTP Elliott Wave Script. First, we must stress that finding the end of an Elliott Wave 5 sequence is inherently dangerous, because a Wave 5 is the "end of a trend", so very often overruns. So, the only time we would ever consider trying to pick the end of a Wave 5 is when there are other reasons for a possible trend reversal, for example higher time frame support / resistance. This is what we demonstrated in this example, where the market was also at Daily (higher time frame) Decision Point (using the MTP DP Script), resistance. There was also divergence in the MTP Trend oscillator (not shown specifically in the video), thus showing weakness was entering the market. As such, this should really only be used by the more experienced Advanced Traders, who have more experience with Analysing the markets. Remember, no matter how good a setup "may" look at the time, markets can, and will, go in the opposite direction, so losses can and will unfold. That is why is is vital that Stops are in the market and any inevitable losses are kept small. Having sad that, once the Wave 5 is complete (and this is the purpose of this "How-To" Video), the market then tends to retrace to the Decision Point (using the MTP DP Script), from the prior Wave 4 swing. I.e., this is the "initial target" following the completion of the Wave 5 Swing. Then, "if" the initial DP is exceed (as in this example), the next target would then be the Decision Point (using the MTP DP Script), from the start of the 5 wave sequence. I.e. the market then retraces the whole of the prior 5 wave sequence. I hope this has been helpful, and shown how the more experienced Traders among you could develop your own trade setup in and around this. For example, trading off the MTP coloured reversal bar (using the MTP Analysis Script), at the Wave 5 high (which is also at higher time frame DP), with an "initial target" of the DP from the prior Wave 4. We have not shown this in this video as we wanted to keep things simple and just show the "typical" tendency of what happens after a completed 5 wave sequence. Please note: this is not a trade recommendation, you should all perform your own Analysis. Losses can and will unfold when Trading, please always use Stops and keep your losses small.
Education
by MTPredictor
1
Support and ResistanceThere is no magical tactic or indicator to "see" the support levels on a chart, but how do astronomers know a black hole is around without seeing it? They use their brain. There are several types of support/resistance, the obvious ones, and the less obvious ones, and which ones do you think separate the bottom 95% from the top?: - Horizontal price level (Bitcoin 9000, 6000, 3000) - Diagonal price level (trendline) - Moving averages self fulfilling prophecy - Constant flow of positive news - Sovereign fund buying or selling (CCP bags) program - There is more, up to us to find it, good luck In my weight gain & weight loss example what supports the increase and decrease? You cannot predict what exactly that person will eat everyday, if someone will drop them home or not, how much they will walk, if they hear in the media about a "science" paper claiming chocolate is super healthy. Those are all random factors (to us puny humans), they are part of the normal day to day fluctuations. Mere mortals including the best know those fluctuations happen but do not trade them, only daytraders do. The weight has some support during the visible uptrend. This support is the regularly added calories from the weekly pizza. Exact same as an institution running an algo to buy shares by increments every week at the same hour (that you could scalp). On the weight loss period, there is a resistance, which is made up of the every other day walk home and the lack of pizza. Yes mostly the resistance here is not something but the absence of this something! So while predicting with precision is not possible we can enter on what we consider 2-sigma oscillations for example. If we bet on the early "reversal" being just noise with a stop at 3 or 4 sigma we get an asymmetric risk to reward. The average casual investors (and Bill Ackman) are the ones betting on the 4-sigma "never give up! strong hands! we will win! the power of love!". 4 sigma is human nature (for most people), also not understanding probabilities intuitively is. But I'll make a separate idea about that. Skilled investors not only exit but even if a trend starts with good support (fundamentals + visible with technicals) they will join the new trend. But careful not mixing everything. "4 sigma" meaning very low p of being noise in the original trend does not mean high odds of opposite trend. So this is it, to estimate what supports the price the smart market speculator has to work as a detective, find clues, and as a statistician, put these clues together with p weights, add potential clues with their own p weights. How can novices possibly imagine they can use "TA" to magically find these supports, they really expect some big red flashy arrows on the chart that anyone can see? It's so delusional. As detectives they'd expect the killer to scream "I DID IT! I AM HERE!"? And of course get a big paycheck for their work as a detective. This is not a video game.
Education
by MrRenev
3
How to use the RSIHi guys, today I will be explaining how to use the Relative Strength Index (RSI) to your advantage. First of all if you have not already, please follow me. Okay, so the RSI is commonly said to buy when oversold and sell when it is overbought. However, this strategy does not always work, and can result in you predicting what the security will do. First Step: You should first check to see if the RSI is making higher lows, or lower lows. This is important because it can show whether the asset has strong buying pressure or weak buying pressure. I call it buying pressure because the index essentially represents the demand for it. So, why would you short something, when tons of people are buying in? However, the index can work short term, if you are day trading, but does not work as well for swing traders. If you see a rising RSI it is a good sign, and the opposite for a falling. Second Step: This is a step where most people don't do, but I think is very important. The step is to check whether or not the asset has an RSI that is hitting overbought, or hitting oversold. In this example, Gold is hit oversold two times. This proves how weak gold is and why it could have a breakdown. Another thing to check in this step is if it stops falling at the oversold level and does not fall beneath. If this occurs, it is a great sign because it shows that the asset is strong. For Gold, it had done that, and if you had spotted that you could have made 40%! In sum, the second step is to see if the asset is hitting overbought levels (good), or hitting oversold levels (bad). Third Step: The next step is to draw support and resistance levels, look at other indicators, etc. You could even look at fundamental data to support your technical data. Last step: Your last step is to place you limit order, and or stop order. Thanks for viewing guys, and please like and follow. Thanks!
AMEX:GLDEducation
by SmartVest
HOW-TO Multi Time Frame analysis with the MTP ScriptsIn this "How To" video, we take a look at how to use multi time frame analysis with the MTP Scripts to uncover possible trade setups. We realize that using 15/3 min is usually a shorter time frame than most posts on TradingView, but we wanted to show that TradingView can be used on shorter time frame charts, so we are including this example on the YM. As you can see from the video, the idea is that you use the higher time frame to project your DP (MTP Decision Point) zones onto your chart. These can be placed on the chart in advance. Then when (if) the Market makes a reversal at these levels, then we deem that the Picture is clear, and that determines the larger degree trend. We then go to the shorter time frame to then look for setups that fall in this larger degree trend direction. Please remember that markets will be random (not in a clear pattern) just over 50% of the time, so the idea is that you only work with markets that are making reversals at the anticipated zones, ie only when the picture is clear. Once on the shorter time frame you look for clear trade setups in the new trend direction. As shown in the video, even when the picture is clear looses can and will unfold, that is why it is important to use Position Sizing to keep the losses small when they unfold. I hope this video has been helpful to show how to use multi time frame analysis to uncover possible trade setups. Please note: this is not a trade recommendation, you should all perform your own Analysis. Losses can and will unfold when Trading, please always use Stops and keep your losses small. PS, if any of you eagle eyed viewers spotted that one of the green "MTP history triangles" disappeared later in the video, and that worried you, it was just because I had "hidden" the standard MTP trade setups script in the video to show the MTP Advanced trade setup more clearly.
CBOT_MINI:YMM2021Education
by MTPredictor