YTC Price Action Trader (www.ytcpriceactiontrader.com) | Trading Reviews and Vendors


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YTC Price Action Trader (www.ytcpriceactiontrader.com)

  #61 (permalink)

Big game hunter
NY
 
Futures Experience: Advanced
Platform: Esignal, MBT navigator
Favorite Futures: Currencies
 
Posts: 2,526 since Jun 2009
Thanks: 1,397 given, 2,573 received


Adamus View Post
Hi,

resurrecting this thread again because it's exactly the subject I want to discuss.

Using support and resistance based on swing highs and swing lows, after several days trading in a range, I find the S/R levels get really cramped and I start deleting the old, stale levels that didn't generate any price interaction.

Sometimes I'll have 3 levels close together, within 20 pips, and it looks like they are all generating interaction. I keep thinking of these supply and demand zones. And in fact, the YTC PAT ebook says all S/R levels are zones really anyway and not just lines.

But having a strategy for a zone is not the same as having one for a line.

Generally speaking I wait for price to arrive at an S/R level and form a stall / consolidation range, generally 5 to 10 pips. Assuming I am confident about my bias for future trend direction, I'll try to get in at a good price in this range, the better the price the further the stop can be. Then hopefully soon price zooms off in my direction.

Otherwise, I wait for a trigger, e.g. an up/down twins bar formation or a Jap candlestick pattern, and I'll enter when that's complete, or in the worst case if my bias is strong or the RR looks good, I'll put a stop break-out entry order in.

That's all clear to me when the S/R level is a line, but what do I do when it's a zone? It seems to introduce a whole new set of factors to consider. If price has almost penetrated the zone and is stalling at the far edge, then great - but what if it's not? Doesn't that make the whole trade lower probability, if price has to fight further to emerge the other side?

@Adamus , can you pass along a copy of the YTC Ebook ? If not its no problem but Ill keep up with this thread as time permits , thanks .

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