Hi.
I wanted to make a post asking others if they use price action and S&R (pivot points) for there criteria to enter and exit a trade. How do you determine when you are in a no trade area when you have a signal?
Ex. Say you get a short signal from you indicator and price is sitting barely above a previous resistance. Would you take it? Also, would it be safer to place your line (S&R) based on the closes rather than the high/low? Thanks.
Adam
I guess no likes to talk about S/R’s eh? Well, I don’t use pivot points, so I can’t help you there. However what I do with support and resistence might not be the same as everyone, so maybe you can get something out of it. As for long term support/resisence on H1, H4, daily, whatever, I don’t pay attention to it, too much. But, thats because I follow trends. Besides once you get caught up in those lines, the trigger finger ain’t so itchy if you know what I mean! So, if your not medium term it may or may not help you out, but I’ll post it anyway. Maybe You’ll get more responses. When the trend dips/retraces slightly, whatever you call it my resistance is at the highest point, my support is at the last retracement. So I look at it breaking through the hight point as a continuation of the trend or it going past the last retrace as a reversal. So, in answering your question, would I sell at a point of support, yes, in fact I might even add a position. In saying that the only reason is because I know my system’s capabilities through testing. Now, other people may say that it’s crazy to do that at such points, but all in all I don’t believe in those points. Regardless of what happens on those points, my system still has the same probability of winning/losing, so I don’t care if the resistance is on the monthly chart, I’ll still buy. Now, if you constantly trade on the support resisance, that is a different story. But if not, the only thing I can tell you is that I ignore those S/R. In fact, I try and isolate myself from analysts, volatility, S/R, etc. Of course that is what works for me, take my comments as you will. Best Trading!
I was looking at this and saw this thread was ancient. Too bad.
There’s at least three different, extensive threads on Price Action trading. Just do a quick forum search for price action.