How do you guys know if the price will respect a resistance level

[eugie17]

Hi,

I am new to forex and my first experience with real trading was making some wrong decisions and losing more than $2k.

I try to guess when will the price bounce and respect certain resistance levels but it seems that its not always bouncing. How do you guys identify it? on which time frames? and is it good strategy?

[o990l6mh]

Hi,

I am new to forex and my first experience with real trading was making some wrong decisions and losing more than $2k.

I try to guess when will the price bounce and respect certain resistance levels but it seems that its not always bouncing. How do you guys identify it? on which time frames? and is it good strategy?

It's good to have S/R levels to watch, however that's not enough.

You should be looking for price to form reversals or break and retest.

Start with daily charts if you're new to this and do not trade real money until you can show consistent profits in demo.

[Valkryder]

You can't tell until after the fact. But it has a better chance of holding if it has held a number of times in the past. Same with support.

[DRA]

It's good to have S/R levels to watch, however that's not enough.

You should be looking for price to form reversals or break and retest.

Start with daily charts if you're new to this and do not trade real money until you can show consistent profits in demo.

Good advice. Reversal candlesticks formations or highs and lows normally forms at possible reversal levels. A high is a candle that has 2 or more lower candles to both the left and right, vice-versa for lows.

[pipso facto]

Hi,

I am new to forex and my first experience with real trading was making some wrong decisions and losing more than $2k.

I try to guess when will the price bounce and respect certain resistance levels but it seems that its not always bouncing. How do you guys identify it? on which time frames? and is it good strategy?

Looks like you're using a counter-trend system. I've had more luck with trend-following systems. Such systems do not include "guesses" and predictions about the future.

You imply that price ought to "bounce" and "respect" certain levels. IMHO, this is the same as gambling. Better study the money-management side of things than trying to predict the future.

[Shr1k]

Wait and see what price does before you guess.
I scalp reversals but if you get in to soon you are guessing. Even if you wait you can still be wrong. sometimes price will blow right through a line you have determined like it wasn't even there, other times it will be a barrier.

The price does not care where you draw your lines. keep that in mind when you expect something to happen, you are better off reacting to what price does at a line then anticipating what you think it will do.

[psdpips]

You cannot tell if price will break SR levels and if someone tells you can, hold onto your wallet and run like the wind

This may not be good advice for the newbie but when you see price hit SR and it seems to be reversing, go down TFs and see what smaller TFs are doing and you can see the reverse most of the time. An art to do this but plenty of screentime can cure that.

[ruilima22]

Hi,

I am new to forex and my first experience with real trading was making some wrong decisions and losing more than $2k.

I try to guess when will the price bounce and respect certain resistance levels but it seems that its not always bouncing. How do you guys identify it? on which time frames? and is it good strategy?

the question you should ask is not: "will the price respect the S&R level"

you should ask:"what will i do when the price reach the S&R level"


you can not predict the next price move unless you have a crystal ball... the only thing you can do is react to previous price move.

once you see the price do something that you are waiting for (like touch a S&R) you need to have a planned reaction for that move... that will be your system. then you need a reaction for what the price will do next... and that is close with losses, close with profits, reenter more money....



unfortunally no one can tell you if the price will respect or break anything