Earlier this month I started Paper Trading on Think or Swim to see if it would work to manage 24 key pairs on a daily basis by only looking for possible entries on Support and Resistance.
So far I’m seeing good progress
I would enter a 1K position size (I’m aware of position sizing for risk management) for this experiment.
The idea was to see if I could grow my account with the smallest possible position sizes and as the account would grow I would shift to live trading and position size properly.
As of right now I have a gain of 36.57 and an open gain of $75.
I’m not sure if Think or Swim’s Paper Trader will allow me to post gains in pips, but maybe I’ll save that for my live trading. I’m thinking of starting with $1200 for a live account and again trade with only 1K positions until I get the balance high enough to trade with more.
From what I understand Support and Resistance is subjective. But for the most part, if you can see a base forming at the top or bottom of price then that’s probably a good indication.
Nor the understanding offered in any book I’ve read.
My understanding is that support and resistance are objective and factual.
Support is represented by the levels of swings-low of the price, and resistance by the levels of swings-high.
What’s subjective is how we allow them to influence our trades and our assessment of the probabilities of previous support and resistance also becoming future support and resistance.