Quote:
Originally Posted by aegis
price does not always follow some basic rules like support becoming resistance, resistance becoming support, higher highs, lower lows, higher lows, lower highs, etc.
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Perhaps that is the problem. You're applying "rules" to price action and baffled when it doesn't obey.
S/R is nothing more than trader sentiment areas. If price blows through them, then the hope we put into that level was never correct in the first place. S/R is a guideline for trading positions, nothing more...and it's prone to failure just like anything else.
Again, and just like mechanical systems, if price was predictable that much and that often, we'd all be rich off an increasingly flattening market.
Quote:
Originally Posted by aegis
Perhaps you need to change your beliefs.
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You didn't quantify this to any degree....so.....ok.
The worst thing you can do,
particularly in a forum specifically designed for NEW traders is to try and shake the faith in a method that a trader has been using successfully. As an "experienced" trader, I'm suprised you didn't recognize this before you posted you're disagreement of Ragingbulls method. Or at the least, worded it a bit more diplomatically and respectfully.
Many of the systems presented on this forum are discretionary to some degree. Including the Cowabunga system that has rules to the entry and exit, but clearly the author has taken position based on discretion, be it an entry or exit. I don't pay much mind to the ridiculus arguments of whether mechanical systems are better than discretionary systems.....those are stupid, immature arguments that only provide evidence of both sides lack of experience. I've traded both and I know what works
FOR ME.