Icarium:
Well I’m kinda stuck on the problem of reducing the amount of pips incurred in my losses, and my reasoning is that if I could get more wins than losses, I’d still be in the green somewhat. Do correct me if my reasoning is flawed.
On the other hand, if I could successfully reduce my losses or hold my trades out for larger profits at more or less the same amount of risk I’m taking on currently, I’m definitely going for setup (2).
As for S/R levels, I’m pretty comfortable with reading price action around key levels such as daily highs/lows, pivot points etc (granted I’m wrong about 4 out of 10 times typically). But maybe what I’m not getting is price action between these significant levels. There could be a hundred pretty important levels in between this defined range, especially when scaling down to a lower TF. And I’m absolutely atrocious at reading what price would do in such instances. One might say why not wait for prices to approach the key levels before making a trade then, and my argument is that this would severely limit the number of trades I can make in a day.
I understand nothing beats screen time when it comes to learning price action, but maybe you guys could point me to some reference material to shorten the process? :o
Other levels you want to watch are round numbers such as 1.3400 or 1.3000, also institution levels being 1.3020, 1.3050, and 1.3080.
Icarium
November 29, 2010, 1:54pm
22
hellogoodbye4201:
Other levels you want to watch are round numbers such as 1.3400 or 1.3000, also institution levels being 1.3020, 1.3050, and 1.3080.
How do you tell where the institution levels are at??
any number ending in 20, 50, or 80. the 1.3xxx were just examples. So, another example:
Do not soley rely on these levels, instead look for convergence or S/R such as the 1.2050 institution level, the daily pivot at 1.2048, and previous month’s low at 1.2055. That would be an example of convergence of multiple S/R.