S&R MAPPING
Created by TrendSetter
S&R Mapping is a
simple system that
makes use of larger
time frame candles to
project and provide
future levels of support
and resistance to
trade on smaller time
frames.
Simplicity
using the larger time frames
Larger Time Frame Candles play a significant role in S&R on the Smaller Time Frames.
Finding solid Support and S&R is an extremely profitable The S&R Mapping system is
Resistance is not an arduous task. strategy and masks itself very well simply a mapping of key S&R
Keeping things simple is the key. from those who try only to back levels to look out for. In no way
The most substantial Support and test and study closed candles. should the system replace a
Resistance levels are ones found Closed candles and back testing thorough education and
on Large Time Frames such as will definitely show which levels understanding of Support and
the 4 hour and higher. One thing stood strong and managed to Resistance. Your own experience
is certain and that is the market change the flow of the market, and knowledge is key to your
moves in waves, bouncing from BUT, what those closed candles success, and the system is only a
Resistance levels to Support levels may not show is the 20, 30, 40, 50 TOOL to help verify, strengthen
and vice versa. Some levels hold pips it retraced after crashing into your confidence, and likely point
strong for a long period of time, a Support or Resistance level. The out levels or points you may have
while some break after few uses. closed candle may only show a missed in YOUR OWN market
Some levels provide a more very small profit of 5 pips if any analysis. The S&R Mapping
position based trade (Large Time profit at all. It could show to be a system should supplement and aid
Frames), while some provide very losing trade if taken at that level. YOUR analysis, entries, exits,
quick scalping opportunities If backtesting S&R levels it is best trade decisions, and your overall
(Small Time Frames). But a to check the level on a tick chart process, NOT REPLACE IT.
simple fact is that they all spawn or a 1 minute chart maximum.
from the Larger Time Frames.
1
S&R MAPPING The Candle
The Candle is the backbone
of the system. If we take a
single candle from any time
frame, using the Open, High,
Low, and Close price of that
candle, we have future levels
of Support and Resistance to
trade on a smaller Time
Frame.
Doesnt matter what Time Frame it is,
what is considered a large or small Time
Frame is relative. If you consider a 1
hour your large Time Frame, then
anything less than an hour is the smaller
Time Frame. If a 15 minute Time Frame
is your large Time Frame, anything
smaller such as a 10 minute, 5 minute, or
1 minute are the smaller Time Frames.
Example...
The Candle
Open, High, Low, & Close
OHLC prices of a candle provides future Support and Resistance levels to trade
For this example the large Time Frame What the S&R Mapping system does is
being used is a Daily. We take a single take the OHLC prices of a candle and
Daily Candle on the EURUSD projects horizontal lines ahead of time
currency pair on 9/8/2008. into the next period.
The Open, High, Low & Close (OHLC) A period is simply the time frame of the
of the candle are as follows: candle used. If we were to use a 4 hour
candle then a new set of horizontal lines
Open - 1.4117 are projected every 4 hours to represent
High - 1.4226 the OHLC data from each 4 hour
Low - 1.4045 candle. In the case of the Daily candle,
Close - 1.4106 a new set of lines would be projected
every day.
Using those price levels from the Daily
candle of 9/8/2008 we have future
levels of Support and Resistance to
trade in the future; 9/9/2008 onward.
2
S&R MAPPING The Candle cont.
The Chart
This is a 15 minute chart with the Next
Period being 480 minutes/8 hours, and
the High Period being Daily.
The High Period OHLC levels (Green,
Blue, Red) span across the entire day.
The Next period OHLC levels (Orange)
span across every 480 minute period.
More than OHLC
A closer view of the
system in its entirety.
The dotted lines on the
chart are balances.
These balances are the
S&R levels that arent
derived from the
candles themselves
but mathematical
formulation of makert
movement.
3
S&R MAPPING The Balance
The Static Balance levels behave very much the same as horizontal
S&R levels. The only difference is that they are projected from the
balance points of the market rather than from candles. Balances prove
themselves time and time again to be very good S&R levels (the ones
you dont see until too late).
The Moving Balance may seem like a trend indicator, but it is NOT. I
repeat... the Moving Balance is NOT a trend indicator. The moving
balance shows the change in the balance of the live market. If the
balance is angled negatively (downward) its best to sell S&R rather
than buy. If it is angled positively (upward) its best to buy S&R rather
than sell. So yes, it does sound like a trend indicator, but this has
nothing to do with candles. If the candles get above the Moving
balance it doesnt signal a buy. If the opposite occurs and the candles
get below the Moving balance it doesnt signal a sell. The Moving
balance is kept pale in color as to not distract from more significant
details important in decision making.
The Moving balance gives you an idea of where the general live
balance of the market is. If the Moving Balance is angled downward
and the candles are above it still means its best to sell S&R rather than
buy because the balance of the market is still below the price and the
market is attracted to the balance.
Note: You will find that the Moving Balance itself acts as S&R and
reacts to the live market like a spring board. (Something you will see
best in the live market in relation to backtesting closed candles)
Balance
the best kept secret
This highly profitable level is often only seen AFTER the fact.
The balance of the market I have found FOLLOW the market, not forecast it; value from what is obviously a center
to be very profitable if spotted early on. But, it does help to understand how point of reference.
It is one of those things you dont notice indicators work.
until after the fact. I have always been curious about Going through the charts thoroughly it
If you look through your charts you will indicators such as the MACD Histogram became very clear and obvious what was
find certain levels that the market used as and what kind of information it really taking place. If you watch indicators like
both support and resistance. These levels provides. I would read currency reports the MACD or Stochastic you will notice
provide multiple buying and selling and see for example that the size of the waves on the indicator
opportunities in a very short period of doesnt always match the size of the
time. But as stated above, these levels will EURUSD 1.4227 0061 waves in the actual live market. The
often be noticed only after the market has reason for that is simple. As the market
played out. I always wondered what exactly was it progresses it CHANGES. The center of
UP from. The information is live so what reference doesnt stay the same forever,
What are these levels? is the reference from which it was UP? but is constantly moving along with the
Whether or not it is related, I found from market.
From my research, these levels are like researching the MACD Histogram
the center of balance for the market, and indicator that it provides the same type of
the market can be very attracted to it at reading. The market is either Up
times. Using indicators is something I (+positive) or Down (-negative) a certain
personally dont use as they really only
4
S&R MAPPING The Balance cont.
The MACD Histogram
the Center of reference is always changing
The black horizontal lines are the change in the center of balance as the market moves.
After studying the MACD
Histogram I implemented the
balance levels produced by
the market into the S&R
Mapping system, which are
projected as a horizontal S&R
levels. No longer do these
invisible levels which provide
several buying and selling
opportunities have to be an
after the fact, but can be
taken advantage of before the
fact.
5
S&R MAPPING System List S&R Mapping System List LTF - Large Time Frame
+ recommended time periods This version of the S&R
Mapping system is
intended for the 2 hour
S&R Mapping and higher Time Frames.
S&R Mapping LTF (Large Time Frame) It only projects lines for
the High Period.
Variables:
S&R Mapping w/AutoTLs
S&R Mapping w/TL
S&R Mapping w/Scalper
S&R Mapping LTF w/Auto TLs
S&R Mapping LTF w/TLs
S&R Mapping LTF w/Scalper
Time Periods are completely up to the trader
These are the general time periods I use on my charts.
1 - 120 - 480
5 - 240 - D
10 - 240 - D
15 - 480 - D
Time Periods
30 - 720 - D There is no set rule as
60 - D - W to what time periods
should be used per
120 - D - W chart. Time periods
240 - D- W are based solely on
what time frame
D-W-M candle OHLC price
W-M-Q level you require to be
projected on your
M-Q-Y chart.
TREND SETTER
S&R Mapping
