Even if you are not a price action trader, simply being aware of levels can save you a lot of pain. I took a trade earlier on the smaller timeframe without being aware that I was trading directly into a resistance zone. Had I simply taken 10 seconds to scan through on a higher timeframe, I would have immediately identified this level and taken a different approach.
Now the trade turned a profit but I have recorded it as a losing trade because I did not follow my rules. You might question that logic but it is important for analysis later to determine whether I am being efficient or cheating myself out of good trades. And for anyone still trying to find their edge in the market…sticking to your rules is your edge because statistically your trading method works out more times than not, right? That is why you are using it.
In the attached screenshot you can see the red dotted line was the level I had failed to identify. So the lesson is, always be aware of whats in your way before taking the trade.
