Hello everybody Im new at trading, Im starting with drawing support and resistance and knowing how to spot them well, but I dont know when the price will break o reverse at that support or resistance zone, i’m struggling at this time, for example if the price comes to a support or a resistance how to know if the price will break o reverse at that zone ?
Please I need help
Hey Montana. There isn’t a way to really tell if support/resistance is going to hold or if price action will break through. Once you identify where support and resistance is, then you watch that area as a POTENTIAL entry point. As price action approaches a support or resistance area, that’s when you should start paying attention for an entry. Price will typically either bounce or break through. Trying to preempt the market would be gambling, unless you have a strategy that you’ve tested to consistently work. Maybe you can use a leading indicator, one that gives you a signal before the movement. Just know that leading indicators can give you whipsaws, so testing and risk management is important. Long winded, and I’m not sure if I answered your question but I hope it helps. BLUF: S/R areas clue you in on a potential entry; it’s probably better to decide what to WHEN the bounce or breakout occurs instead of trying to predict it.
Its inevitable that 5 different traders will find 50 different support and resistance levels on the same chart. But that’s alright. Indicators don’t literally predict what the market will do, but they are a useful framework to tell you what you should do.
Its OK to not be able to predict the weather, as long as you can predict what you will do if it rains.
Im looking for Major and Minor support and resistance, and using divergence to predict if its a reversal or a continuation if the price comes to a support or resistance Im looking if there is a regular divergence or a hidden divergence for a confirmation, sometime its work sometime not, cause I lookin 2 or 3 indicatores to confirme the divergence, forexample RSI, Stoch and MACD, the problem is some time all indicatores show a divergence sometimes just 2 or 1 indicator are showing divergence, I in the good way ?
Ya I know each one has his own way to look in the chart, but I just want to know the right choice
Why not start analyzing what price does after it breaks S/R levels? There’s still a good chance you catch some of the price move. Maybe not the full move. From there look for new S/R levels to set TP, or now watch for pullbacks/retest and then a bounce. If any indicator out there could tell the future, what fun would there be in what we’re doing?
The more indicators you wait for to confirm a trade, the less trades you will take. If you are only risking 3-5% on a given trade, it may not be worth waiting for “perfect market conditions” with your trade.
You’re probably better taking a strategy that gives you more trades and using a money/risk management that even though you only win 4/10, you still come out profitable. Tossing too many indicators on a chart can create a lot of noise that may ultimately prevent you from taking advantage of an otherwise good trade. Not that you have to follow my advice, just my two cents.
Use these input set up values:
MACD : 3 - 10 -16. Use the histogram as a trend strength signal and sharper entry/exit point.
RSI : Just the 50 line. Above, bullish trend - Below, bearish trend.
I also use PSAR 0.09. 0.50, Very useful for identifying S/R & S/D zones Easy to draw horizontal connection lines, and for setting P/L and T/P.
Follow the banks who control the market. It will give you an indication. Pure price action based.
Concentrate on price movement and market structure. Support and resistance can be very subjective.
Can you please attach few examples here (picture of your practice)? Then you’ll be have more valuable suggestions according to my opinion! By the way, don’t count all of the levels on your chart, then you’ll be confused!
Support and Resistance can be useful in conjunction with market structure can help identify trading ranges for different time periods
In my opinion, S/R zones are better than S/R levels. For me, Price Action almost always falls short of reaching a level, but almost always reaches a zone. Once I determine a S/R level, I mark out a zone about 10 or 15 pips above and below. Then, I pay attention as PA reaches and touches these zones. Once the zone is broken, I wait for a second candle for confirmation and verifying with VOLUME. To me, volume is extremely important.
I agree with your statements, too many indicators creates too much noise. Follow the PA and Volume, that will tell you what the institutions are doing. Learn to live with losing 60% of trades. With proper risk management, always using a Stop Loss, the 40% winners will surely make up for the 60% losers. Remember, we are like baseball players, but with trading. A baseball player is paid millions for striking out 60 to 70% of the time.
To your points yes I forgot to say Support and Resistance zones as opposed to Support and Resistance lines/levels.
It allows for better reading interpretation of Price Action also your levels will differ from others
How are you doing this exactly? Is there publicly available data?
Youtube ICT trading 
It is always a tough task for a trader to find such points but with few technical indicators you are able to that like fib retracements and enhancements can really help you to mark these. Along with this if on support or resistance zone you spotted an importance candlestick pattern that can confirm the bullish or bearish reversals then its a plus point.
Generally speaking it kinda hard to tell if price gonna break support or resistance level but if it bounce back few times then it mean the support or resistance level is strong and price will be more likely to reverse.
There are instance where market moving sideway between support and resistance few times before break into a new level.
Resistance and support lines are very helpful for conducting the technical analysis. It helps to identify the price points on the charts where there may be two probabilities, either pause or reversal of a prevailing trend. Support level is supposed to occur where the downtrend is expected to pause due to the concentration in demand.