As a rookie my experience with support & resistance is of almost complete randomness. I have not yet got around to analysing the effectiveness of support and resistance in percentage.
No book or article has mention anything about percentage of breaking resistance. Has anyone anything to say about this.
You will not find any stats of significance. Support and resistance are a subjective subject and give a chart to 10 different people and you will probably get slightly different levels drawn on
Someone posted a link to a pdf that was a study about the existence of support and resistance, it was a pretty good read.
s/r for itself is useless. Candlesticks for itself is useless. RSI for itself is useless. …
As you drive by a car with an engine, wheels, seats, a radio, instrument panel, … you might want to drive through forex with your own system “car” which contains several parts like a real car. Combine it all together, build your own system and there we go …
Support and Resistance is not subjective and it’s [U]absolutely [/U][B]King [/B]in Analysis.
It is measurable, dependable and easy to determine on all timeframes but the key is trading on the higher timeframes for the best levels which the banks and institutions monitor and key their flows off of.
S&R Alone is absolutely not useless. :rolleyes:
I made a count of how many times support and resistance was broke
the kumo cloud on a ichimoki indicator and if appears very significant
Major S&R levels are very effective on “daily” charts.
So, you trade just on s/r and no other indications? 
Even trendlines are king I always say. TLs are nothing else than s/r levels. Anyways, I wouldn’t trade on just trendlines. Plus for sure everything beside of time and price is subject to your interpretations. Even pivot levels are subject to your interpretations, because there are different close times around the world.
Surprising that even some hearsay long term traders have no clue about some simple market facts. Trading is an art some say. I come more and more to the conclusion it is the art to tell tales and myths, ha ha. 
All my setups are based on hand-drawn horizontal levels of support/resistance, as well as trendlines. My entry triggers are the candlestick patterns that print at these highlighted levels. My trend bias is defined by the HH/HL or LH/LL behaviour of the swing highs and lows. I use multiple timeframes and prefer the “top-down” approach.
I find plenty of quality trading opportunities with this simple approach and at this point I don’t see myself ever using an “indicator” ever again. Experience has taught me that it only detracts from my profitability.
Let your own experiences show you the way to profits!
I do not trade solely on Support and Resistance but I have traded it like that a few times here and there. Profitability is not determined by mathmatically based indicators of which PRICE cares nothing about nor do the underlying market conditions at any given time.
I trade and Professionals like me off of Key S&R levels and this is the basis for long term consistent odds. You don’t put the years in I have without having the basics firmly grasped and bar none… Support and Resistance is absolutely the core tenant to Technical Analysis and new traders should focus their attention there and not fall in love with indicators or “tools” without the proper stage or time to even refer to them. This is a typical novice expectation to assume EA’s, Indicator driven approaches will spell profits and the “answer” to the riddle of the charts.
If it were answered by math… some MIT grad would have passed George Soros and or Warren Buffett several times over and we’d all know them by name. 
You are in the company of the real success stories… its alarming how many times poor advise is peddled and passed on these forums with no regard to the impact it may have on novice readers. Indicators measure the past behaviour of PRICE… [U]they look backwards[/U] and newbies and less knowledgable readers assume they “predict” or “look forward” in time… Indicators can be useful in moderation… but if you want to get to your destination and only look out your rear window… you miss the obstacles just up the road!
If it’s working for you, great! 
I did not say one word about indicators. I wrote [U]indications[/U]. An indication has nothing to do with indicators. You may get indications just by price and time. To tell you the truth my friend, one of my EAs work without any indi and without any s/r magic. Just time and price and nothing else. Plus it is in profit already. It can never ever make loss in the long run, because if my drawdown line would be crossed, I’d just switch it off and then I’d have a little profit. This is a 0:indefinite risk:chance ratio.
Anyways, as you seem not to trade on s/r alone, you seem to trade different than what you said. Trading “here and there” is nothing consistently, right? Every trader might have luck for a short time.
Did I write anything about math? Math is helpful, though, but a little more is needed. One key to be successful is to push myths and tales to the trashcan and think and trade for yourself. What’s your average roi and drawdown by the way? I just ask, because that’s the only number what counts in the end. All fancy rhetoric aside.
P.S: Before you talk about novices: I am working in the financial industry since two decades. Just not forex alone. I have no problems with novices, but I am wondering why you call yourself ict.
Back to topic: You could for sure ride by a wheel alone from Chicago to L.A. or you could walk but why not take the other parts, too and ride by car, train or plane?
Hey, thanks for the vote of confidence! I remember learning a lot from you when you stopped by earlier this year, specifically how often the market will run stops above/below a level and then run the other direction with gusto. I always love to learn about how the “big players” operate because I know I make my living by tracking their footprints in the sand!
But while you’re here, can I ask you about what you call “institutional levels” in your videos? I think they are marked off as the 80/20 levels surrounding a round figure, and I always watch them, but not sure what the reality is behind why institutions would have an interest in these levels specifically…
have any insight for me?
Gear down “Joe”:
I wasn’t speaking to you personally… I replied to your post as an additional point of view. I am not playing measuring stick with you. I make more than most and I average 30%+ monthly and yes with a seven digit account. I am on the net with my trades and the results… I have nothing to prove. I can make more than I do, but I am comfortable… let’s just call it that for ego’s sake.
I’m not suggesting you can not make money with automated systems… I posted new traders want this versus understanding how the markets trade. How the banks and institutions move large flows is absolutely based on PRICE; which as you say here, in your decades of Financial experience would know. I have been courted by large firms since I was 23 years old, I’m 38 now, to manage funds… to which I am quick to decline. This sort of thing is meaningless and impresses no one. I lose money and the notion you will never lose speaks volumes in my opinion.
At any rate… Good Luck with that
Holster your pistols…
Large flows and orders placed in the market to buy or sell are typically on whole numbers and not say 1.61[U]13[/U]… the market turns on whole numbers because the market is the banks and institutions not us speculators.
They key off these levels and avoid splitting hairs on pips or points… the ability to move beyond an 80 or 20 level indicates the buying and selling interests between the banks around the BIG Figure and can be exploited in the proper times.
I will cover more on this in this weekends video.
Gear is never down in a suitable cruise setup. I talk about flying.
It has nothing to do with competition. It has to do with myths. Most ppl can tell you a lot and if I ask for the roi and drawdown, they almost become naked losers.
I did see the holy chambers of a big bank where I worked, so what now? I still call myself a newbie and not inner circle something. Who’s ego is folding out here?
If you can’t follow me about this simple case that if you are in profit already and let an EA stop trading if it is slightly above the b/e line, I am wondering more and more how you would be able to be proftable. That’s simple math:
Start with 1000, now 1500, stop if it goes below 1100. So, how can I lose? :rolleyes:
Let me please add: Zeros don’t impress me. If you have 1000 and 50% profit or 1000000 or more and 50% profit, the roi is the same. Plus I know a lot of ppl made it to the top of the biggest mountains and then they had to climb back.
Anyways, good luck to your new career where you play with your own money now instead of others, right?
I named myself InnerCircleTrader because I understand my only circle of influence is internal, not external in the markets… hence “Inner Circle”… I trade therefore I am “InnerCircleTrader”… Sweetpip dubbed me ICT for short, on this forum. It bears no reference to elite thinking of myself but rather my personal paradigm shift.
Again, I’m not stoking an ego match… you can return to your advising now. My point has been made. lol
Ha ha, okay. Peace man! My point has been made, too. As I said, roi and drawdown are the only numbers what count. No ego ever will top that.
Ok let me come back in on this, despite the fact it’s a Saturday and really I shouldn’t be on the computer!
I originally stated support/resistance is subjective and I still maintain that. I say this because nobody can give me real probability on what support/resistance levels will hold. How can it not be subjective when there are potentially infinite levels of support/resistance for any pair depending on what a particular trader is looking at. Yes, anybody can see yearly highs or lows and say they are major support/resistance levels but what about all the grey in between? What officially decides if a level is support/resistance? Price action touches once?twice?thrice? This also goes with support/resistance levels for trends.
I was not saying support/resistance levels are not important, I was responding to what the OP has said:
“No book or article has mention anything about percentage of breaking resistance”
The reason for this is it is not quantifiable. It is highly unprobable and unrealistic to expect traders to all pay attention to the exact same levels for support/resistance.
True… if you are looking at one and five minute charts there will be a plathora of levels but Im not refferring to short term fractals here but Key S&R levels.
You have:
daily highs and lows
weekly highs and lows
intra-week highs and lows
monthly highs and lows
quarterly highs and lows
yearly highs and lows
each trading session (Asian, London, New York) has its key high and lows
So I disagree strongly these levels are static and seen on all traders chart. Whether the support holds or resistance gives way… Is altogether different, and therein lies the Risk. However these levels are what turns the tables daily.
Dont take my word on it… Go study it yourself. It is really easy actually but traders like to focus on the micro view as I stated… Five and one minute charts are deceiving and their S&R levels are subordinate to the higher periods listed above.
Im done ranting lol.