Practical Exercise 4

[Nigel Southon]

Back to studying and posting after work and life got in the way last week.

I’m a bit confused as to question 3, as it states find one example from your 3 markets untested support or resistance, in this case it was GBPJPY.

I found the 3 daily markets indicating untested support and resistance as attached.

Also attached is what I think is resistance for the 15 minute chart for GBPJPY.

Many thanks

Nigel

Attachments:

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[John Murphy]

Nigel,

I’d be interested in a comment from Rich on your choices. I’m wondering whether you have found the extremes of the up and down moves to plot. Some of your lines seem to show in areas of sideway trading.

 

Regards

John

[Rich Fitton]

Hi Nigel,

All looking good… you’ve used the principles we looked at to find those little high/low swings that can help mark good target areas. Just one thing to think about: I’d wait for the market to move away from an area before you can really consider it support or resistance. So on your GBPJPY chart (the level where you’ve got the question marks) you could wait for a move above or below this area before going back there on the chart to assess the S/R situation. Similar observation for the latest level on your CADUSD… you could wait for the market move away from that zone before looking for S/R.

The 15min exercise is just a case of applying the same principles to that timeframe. So for this exercise you can set aside anything you’ve already found on the daily chart and just focus on the price action of the 15min.

[Martyn Young]

Hi Rich

I have attached the following charts showing untested support & resistance levels

GBP/USD daily (support at 1.4646 – March 15 and resistance at 1.7140 – June 14)

EUR/USD daily (support at 1.05296 – March 15 and resistance at 1.38718 – April 14)

USD/JPY daily (support at 94.65  June 13 and resistance at 125.03 – June 15)

USD/JPY 15 min (support at 122.33 – Nov 16th and resistance at 123.46 – Nov 17th)

Please check to see I have correctly calculated the levels

Attachments:

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[Rich Fitton]

Hi Martyn,

It’s a bit tricky to see the detail on some of those charts – I can’t see the candlestick bodies to tell where the lines are placed. But I’ve circled a couple of candlesticks on your USDJPY 15min chart that you could project levels from, and I’ve also attached a couple of daily charts with some example levels on for you to have a look at. Hope it helps…

Attachments:

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[Martyn Young]

Hi Rich

Sorry about that, but I had to zoom out in order to show & prove the untested support & resistant areas which went back over the past 18 months, I will re-post some more close up charts

Thank you for your chart attachments

[Author]

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