If there were a place for each of us to sit and discuss over price charts and toss about some ideas - what do you think would come up?
How much money does each of us make in our trading?
How long is the length of your trading career?
If profitable - by any measure - what are you using to trade?
Those would be the deep questions unfortunately. No doubt we’d see people asking to show me when to get in a trade and when to get out. Websites like these are a waterhole for the lost and hungry. The recent focus on price action is a refreshing one and this is not a knock against indicator based trading models and or traders.
If the new traders were to understand what it is in fact they do not know, they’d ask an all together different set of questions. Assume for the moment we had a time-machine and could go back to that same point of origin in our trading adventure. What would you ask others - supposedly in the know - knowing what you know about trading now?
I think you would be hard-pressed to find a better question than that of proper understanding of price action and it’s typical behavior at and or near key Support & Resistance zones. I say this with great confidence as if one studies the natural price action around higher level timeframe S&R this unlocks the order of things on all timeframes.
If one were to ask where do I look for a trade?
My reply would be at or near a level of clear Support or Resistance found on a Weekly - Daily - 4 hour basis.
If one were to ask where do I look to enter a trade?
My reply would be at a point where price proved its willingness to respect that higher level timeframe S&R level.
If one were to ask where do I look to exit a trade?
My reply would be at a level - on the timeframe used to frame the trade idea - where I’d reasonably expect price to encounter contrary Support or Resistance.
Trading is a vast subject and like other technical topics humans love to make it far more complicated than need be.
In its bare essential form one can gather reasons why to formulate, plan, execute and profit from the application of simple horizontal S&R zones on higher level timeframes. When the levels are violated would you be left wondering why the trade turned a loss? I’d submit if you were responsible you’d understand the price was simply unwilling to respect those or that particular level and moved beyond it. Not that you need a new system or trading method but rather price rebalanced and moved outside your personal expectations.
Additionally to use a basis or origin in the study of price action. With all there is to learn and ignore in this business it can be something of a chore to decipher where to begin.
At least for this poster - this would be my submission - to those pondering the subject.
I feel that it’s a good call to make sure we clarify what exactly a ‘support’ or ‘resistance’ level is. So in that regard, I’d like to re-post what I’ve written in a different thread on the topic:
You could offer an ironclad plan with a high percentage win rate and great expectancy to a batch of noobs, and almost to the man they would screw it up.
The secret to earning a buck in this gig is learning how to. And it’s not in the entry.
You got s/r lines on your chart because when you were still in diapers the price turned, because there was a liquidity pocket for some reason.What does have to do with the present liquidity pocket’s?(s/r’s function greatly to clutter a chart, that’s the only usefulness in them in my opinion) The fresh s/rs that haven’t been touched will turn/drop price. the retouched/sliced ones will probably not,since no(or not much) liquidity left.And an s/r by every trading book is only confirmed if it’s been touched twice at least. Hence the whole s/r line concept is crap.It represents history that’s got nothing to do with the present,depleted liquidity pocket’s that retail like to stack up and lose their money. Once a high/low been run trough, it’s pretty much irrelevant. That’s the very simple truth of s/r trading . Reconsider everything that anybody saying to you,ask at least if it’s even making sense. Specially in this game.
Lines can be ghuude if you do it right. Some lines are respected for weeks, months, even years. It’s fun to watch price hit a line an turn on it to the pip. No, nothing is 100% but it’s damn freaky sometimes!
True. But as you said, “some”. And if you’ll check they are usually only the fresh ones. It can work with conjunction with other factors, hence my stance towards the thread openers s/r only attitude.
I am 1000% don’t agree in this post. The people who doesn’t respect S/R are absolutely amateur trader to me. S/R, TRENDLINE, EQUESTRIAN Channel are all respected from Price Action. If these are describe as crap, then EW, Chart Pattern, Pendant or Wedges, Flag or etc. are crap as well in your opinion? Neither Technical Analysis nor Fundamental Analysis predict future, but they provide us the statistic and edge we need to take higher probability trade. If all those mentioned as crap, then your trading is nothing about except tossing a coin.
Mate, i wasnt arguing against s/r or supply demand those are core fundamentals of the markets. It was against the convential use of s/r. Reread the post and try to percieve it as it is. For me amateurs more a group who are not spectating the markets or reality (posts for example) with an open mind and a neutral spectetor point of view… May the pips be with you mate…
Cheers,
-P
Let’s take one live example for USD/JPY. It is all respected instead of drawing for so called crap. To me, looking for ready made EA of holy grail system, then those are absolutely crap. It is matter of how you draw it. By using this drawing, if go on lower time frame, then you can see all those price action working, how it test, retest, break and rose. When it is on upper channel, it respected and rejected with 3rd touches. Maybe someone will say it is crap, but what I want to says is most of the professional do this. If not, why it breaks and the volatility comes in? It is definitely better to make a guess when this or that will collapse.
I am not argue about s/r as well, but talking about S/R was crap make no sense to me. Supply/Demand, nothing to talk about this because we are in trading business, of course there must be supply and demand, otherwise we don’t define it as trading, probably gaming or playing forex. If to combine S/R with Supply/Demand, it is more easy to explain on this situation. For instance, you work on anew business, of course there are only demand if your business do have attraction. Otherwise, your business worth nothing. That’s why S/R works, because it attract more buyer or seller when it breaks. So I think this kind of explanation make more sense and easy to understand.
Totally agree. Support and resistance levels are main guides to technical trading as well as taking part in fundamental analysis as supplement feature they demonstrate clearly how bulls and bears are running out of their powers when S&R trendlines reach their peaks. It is an absolute turth that S&R is a basis for heaps of other strategies which proves their viability even on the professional levels of trading…
BTW. describe professional…:33:
Do you actually manage to see the price on that?