Funny you say that...the guy I learnt the importance of trading with S/R as your central methodology using indicators at most as confirmation (if at all) has traded for major banks and hedge funds personally managing millions and at one point over a billion for a well known hedge fund. This is a link to his thread, http://www.forexfactory.com/showthread.php?t=86429 say hi from me after you call him an "amateur"
Hi Paul Thanks for your message, I have received a few pms like this...I know when you are learning something new, it may appear hard. But truly this is one situation where what you see is what you get. I have 1 Screen with a 1 hr chart showing about a months worth of data. On that screen I have the levels I posted in todays worksheet. Instead of me handing you the fish, I want you to try doing this for me (I promise I am not fobbing you off but this will really help your learning) I want you to get a 1hr chart up and draw those levels on and then tell me (you can do it by PM if you like) why you think I chose those levels. I promise you this will make it so much clearer. All we are looking for is where price has reacted in the past. It is not complicated. So please do not think it is my friend.
I have had many requests for my blog address, I thought it was posted in my posting signature but for some reason it is not coming up. es-supportandresistance.blogspot.com
ES, I completed the task you asked Paul to do. Initially I was a little bewildered about EXACTLY where to draw the S/R lines. So I just started drawing the lines in at the values you posted on your worksheet for 9-4-08. After about 10 minutes the light bulb went off. I look forward to watching what happens at the S/R levels tomorrow. Thanks
I completed the task as well but my light bulb only slightly lit up. Part of my issue is I am using Ninja Trader and am having trouble getting the chart's sized t corretly to show all the data for 1 month. Let me ask a few questions at the risk of being the village idiot. I also PM'd ES. Is the idea that the numbers for Open, Close, High, Low and the lines that are drawn areas of support and resistance with the upper lines being Major and the middle lines being minor? If the price breaks a major line we can look for higher highs or lower lows and if it breaks a minor line you look for up or down movement but not neccesarily a major high or low. More likely it is a retracement? Am I close or not even in the ball park. If this is close I don't understand the need to go back a month for data. OK, the villiage idiot has spoken please feel free to flog him now. Paul
Jack Hershey doesn't have to look at price charts... he can trade off of indicators and rows and columns! In his own words... http://www.mediafire.com/?fdonychv3oq
I'm following this thread with great interest. I can't speak specifically for the OP, however in general I think the answer is yes. I studied Frank Dilernia's method quite extensively for about a year. I've read both of his books and subscribed to his service. It is based on a very similar concept but utilizing a 3 period time frame with only a single S/R above/below the pivot. To make a long story short, for 2008 I'm up over 30% in my 401K (US retirement account). For 2007, I was up close to 50% late last year just before the crash. Both of the above performances are based in part on what I learned from him.