Hi guys I was wondering if you really have to take in account the support and resistance levels of the past days when trading.
I usually use the H4 or D1 Timeframe, but noticing that they probably are too slow for my personality/style/account size. Those timeframes show me candles (data) of up to 2 weeks ago and I also ask my self: “damn I’m planing to hold on those trade only for a few hours or days so who cares about the s/r levels of (let’s say) 14th september when today is 27th?”
The problem is neither the stop loss nor the take profit gets triggered cause they (the exits) are placed near areas of interest of past (i. e. 14th september) data but it seems that it would be better to pick those levels on lower timeframe like M15 to hit the more recent s/r levels.
So how far do you /scroll/look back in past when trading?
I don’t scan the charts looking for price levels to qualify as support or resistance. But I do keep a watch for swing reversals. You can argue that these constitute support or resistance. I find looking for swing legs reversing never needs me to go back more than 3mths on the D1 chart.
If trading the Daily & 4h charts, you could try seeking out supply and demand zones, which is like surfing the waves of a volatile pair or indicies.
On these set ups, always look at what’s happening below, see if it is accord with the daily chart, as your aim for a 4h entry, is to find price points where losing traders will close their positions or get stopped out. This is key.
Then place a T/P below that position on an upward trend and vice vera on a downwards trend.
Of course I care about past S/R because the key assumption in technical analysis is that history repeats itself. Looking back one or two weeks (for my 1H timeframe) helps to understand current market structure and context in which price interacts with support or resistance level.
I think the market is chaotic and in this case, history does not repeat. Everybody would be rich if support and resistance would work everytime. So I’m no longer giving a f about last weeks levels since my horizon of holding a trade is usually just a few days. Thanks 4 answersing at all😁