I think your thought process is sound. At least for using limit orders. Mainly because they can only be slipped in your favor.
You’re looking at support and resistance so maybe there’s an idea in the above for you too. Instead of placing orders based on something as subjective as support and resistance: what would happen for you if you roughly identified support and resistance but only placed your limit orders at a pivot level that’s close to your support and resistance??? Just a thought (yet another one). I’m unfortunately notoriously poor at recognizing support and resistance so I don’t bother with the idea. But that’s just me.
I have absolutely no doubt in the merits of pivots. I see price trade to them day in and day out like clockwork. But the usual garden variety pivot point trading strategies just don’t float my boat. But those levels to hold. The problem is working out which one of them on any given day is going to hold. The other problem is in which direction to take the pivot point trade. I’ve seen so many pivot point strategies it’s frightening. But when I try and trace some of the trades through: I don’t get it. I suppose if you’re accustomed to, and can handle, getting stopped out and brush that aside and move on to the next pivot point trade well great. I just don’t have what it takes to do that.
The reason for my thought process as it pertains to my trading system: my trading system is giving you the direction to take trades anyway. It could be wrong because my trading system can have trades going against you for days before turning to profit and closing the trades out. But I really think there’s something to this. Maybe not a combination of the two trading systems i.e. maybe two different trading systems. Dunno. Not going to lose any sleep over it. These things just come to me from time to time. So I put them out there. You never know: they may click with somebody that can run with them type of thing. But this one: maybe I try to finesse myself. I suppose if you base it down: you’re simply using RSI(2) to indicate to you whether you should be looking to go long or go short. Once that’s been established: you then use extreme pivot levels and place limit orders. Could be a very valid short term intraday trading system. Maybe.
Put it this way: even on days where my trading system is wrong and it would have you hold positions overnight and wait for the next signal price will still trade to a pivot, retrace, almost always hit the next pivot, and then barrel on against you after that. There’s definitely something in this.