You're right. I would like to draw attention to such aspects (Just a few thoughts in this direction).friend4you wrote: Wed Sep 26, 2018 6:49 pm
Wow, Amdudus is a respected and as contributor flagged member here. Why on earth do people make problems with paypal just because of an unanswered question.
Fibos are found everywhere in nature and just another way of trading, but like Murray Math lines, they are not very reliable on 1-5 m short timeframes to me, because lines every 10-30 pips do not help much. Beware that these structures may change with new highs in main trend, so better trade in trend direction.
Big players mostly push the market where most of the stops are (easy money).
https://www.justice.gov/opa/pr/five-maj ... ilty-pleas
The levels of Fibo and Murray, on the one hand, are dynamic variable quantities, on the other hand they are static and unchanged in a separate period of time. Which of them here and now can be trusted, and which one is not?
Therefore, the indicator should take into account dynamics and statics.
Therefore, the coder should know this when writing the indicator.
This happens very rarely. Of all the tried and tested indicators of the Fibo levels, more or less I like the work included in the algorithm of the ZUP indicator.
But here's another question: levels on different timeframes (especially dynamic ones) will behave differently and, very often, give a contradictory picture, which introduces the trader into a stupor.
We look at the picture. What possible action? Where do we enter - BUY or SELL? (Timeframes M1, M5, M30 are shown here).
The trader will choose the path of least resistance, where there is less market noise and errors in the indicator algorithm - a larger timeframe. Is this a mistake or not? We all know that there can be very "logical and correct" mistakes. Dead end? No! We will be helped by other indicators-for example, zones of resistance and support. And the same Fibo and Murray on older timeframes. We look at the picture.
Therefore, there is no way to work on one or two leading indicators.
Consequently, the indications of the same, let us assume very high-quality (as a product) indicators
on different timeframes give a different picture, which leads to gross errors and the discharge of the deposit or tolow-profit trade (at best).
Now a few words about the other.
Technical levels on the charts are built by everyone - both the raw trades and the green beginners. Building support and resistance levels is, perhaps, the first thing a trader who has come to the foreign exchange market learns.
It would seem that there is complicated? I ran the line through the local minimum - that's the level of support for you, at most - and the resistance level is ready. And meanwhile, in this way of construction there is a serious error leading to missed entrances to the transaction or wrong entries.
NOT LEVELS, A ZONES
Let me remind you of the formulation of the price level in the foreign exchange market. The price level is an area or a range of values that the price can not immediately overcome.
Pay attention to the words "area or zone of values", it is in them lies a dirty trick. Drawing a line on the chart through a maximum or a minimum, the trader indicates a specific price value, depending on which trader and determines what happened - breakdown or rollback.
For a better understanding, let's take one of the levels built on the hourly chart. For example, this is the level of resistance in the euro / dollar pair, built at a price of 1.23966.
And now look at the same level in a smaller time interval. As you can see, here the level already works a little differently than on H1.
In the first case, it would be possible to open a deal for sale on the rebound from the resistance level, but the trader did not do this, as the price did not reach the level drawn by him. In the second case, a long transaction would be opened for breakdown of the level. In the best case, it would bring a very small profit or would close on the gapless. At worst, the deal would bring a loss.
But if the resistance was not built in the form of a line, but in the form of an area, then the picture looks quite different. It is clearly seen that the price could not overcome the resistance zone and in this case, the sale transaction on the rebound from the zone would have been opened.
As you can see, using support zones and resistances is more efficient than using simple lines.
FROM WHERE RESISTANCE AND SUPPORT ZONES
Every trader knows that technical analysis is the basis of trading. Ask any trader, he will immediately tell you that the take-profit order should be set at the opposite trend line, and the stop-loss - above or below the previous local maximum or minimum.
And there are millions of such traders in the foreign exchange market. So the resistance and support zones are exactly the places where traders have their take-profits and stop-loss.Accumulations of these orders are very important - when the price reaches them, then hundreds of thousands, for example, stop-loss work almost simultaneously. Accordingly, the price receives an impressive impulse for further movement.
However, traders are not robots, so the values of stop-loss are different, although they are within one narrow range. It is this range that is the support zone or zone of resistance.
It is quite easy to build such price zones. It is enough to find the corresponding price reaction on the chart and to allocate the corresponding zone on it. Flip through the story - you will be sure that the zones you have created really work and are much more effective than the lines drawn on the extremes.
Using a support and resistance zone in the trade, the trader sees the market picture more clearly and does not miss the signal at the opening of the position, unlike the trader who operates with the usual technical levels. A "classic" trader simply will not open a deal, because the price has not reached its level.
Zones of resistance and support will work on any time interval, only their width will differ. Try this method, and you will see that your trade has become even more efficient and more profitable.
