It's not just support or resistance but basically whatever it is that you decide to use as a strategy will seem to work and then not work. understanding why this is so and what to do about this natural phenomenon is the key. Here goes and I'm not playing with words, words are the play. You can' have nothing without something or something without nothing. The truth of nothing and something is that they become each other. A becoming Is a becoming of a becoming. Understand the paradox which is the result. Even if your right you may be wrong. Remember that when you remember you can only remember if you never really forgot. if you really forgot it would be impossible to remember. What goes up must come down but it must go up again because what comes down must go up. So how can you pick direction? It can be done in a limited sense but It is not necessary and you don't need to know how. The key is not to try to pick direction because the picking of direction is what creates direction so it is quite literally impossible to predict direction the way you are trying to predict direction. There is quite literally nothing there to predict as nothing has actually happening which can lend itself to prediction, there is no linear process capable of being predicted. Yet following a simple system which will work if followed is near impossible to do, at least for most. In fact, they will not even be capable of realizing that it will work. But Why? I'll tell you why? Because they are not trying to make money but are trying to stroke the ego. Your using trading to make yourself feel good about yourself and it's an addiction a bad addiction which will not be easy to break. You have to separate your emotions and sense of self worth from trading or it will be impossible to do the right thing. It won't be easy to change if you are suffering from this. I know this personally. Funny how trading seems to attract such individuals. So what to do...and I am talking to myself here.
Remember this...... you were attracted to trading in the first place not to try to make money but to prove something to yourself. You must turn this on it's head. Now use trading as an opportunity to grow and let go of the ego. Don't ever forget this. Your main goal in trading is not to make money but to grow as an individual and free yourself from your limiting ego. the moment you forget and focus more on the money you will stumble. Make it your goal to feel good when you do the right thing even more so than when you made money. Feeling good has to be connected with acting correctly not glorifying your ego by winning or proving that you were right. Effort always has to be directed in this right direction and constant self reflection will be required. The method you will use will to make money in the markets is not important and will appear to you without effort when you are emotionally in the right place. if you still think it's important the ego is still in the way. Try to feel good because it just feels good to feel good? Let your curse be your blessing. All the best.
The following user says Thank You to Iamdom for this post:
Hey big mike New to the forum, and it's great !! Sorry, but can you please explain what you mean in this quote? What thread are you referring to? Or am I just misinterpreting/not understanding what you're saying?
Btw. I've found support and resistance to be very effective for me, and I'm looking at going live soon. I think this thread was started as a blanket statement, but it seems quite misleading and could be for many people. I've been trading s&r on sim, it has worked, is OP implying it doesn't work?
To me it seems not all support and resistance opportunities are created equally. The ones who have good money management and take the better opportunities are the ones who succeed don't you thinkk
The following user says Thank You to Raider for this post:
These concepts of "Random Lines" and what does and does not work has been debated to death here before. My own view as to what works and doesn't work is more nuanced than a yes or no.
I would venture to say that if you applied a rigorous mechanical test of "every signal" generated by an indicator, trendline support/resistance or whatever in the manner Adam Grimes does, just about everything would be random, that is the hall mark of an efficient market. That is why he can say that random lines on a chart work as well as actual trendlines.
But as discretionary traders we do not have to take "every signal" we can pick and choose when to take a trade. As an example as a PA trader I will not take a trendline touch signal after a three push wedge unless the trend is very strong. There are other examples depending on how one trades. The point is we can wait until the odds are in our favor based on multiple inputs and experience of the market. One only needs to be right 51% of the time to become rich in the long run.
So in my opinion S/R lines work if used with discretion, most inexperienced traders are looking for the holy grail where they can say if this happens then do that and collect the winnings at the end of the day. Unfortunately it does not work that way.
The following user says Thank You to Seahn for this post:
I'm sorry but support and resistance does work. It's you my friend. It takes a level of skill you currently do not possess. If I was to attempt some type of surgery brain, heart or abdominal I could easily proclaim...... Surgery does not work! Yet the skill and competent physician performs it everyday.
You can't just use support and resistance however you like in this or that situation and except it to work. Just as the surgeon needs the proper environment, namely a sterile one, for the surgery to have a chance to be successful, as well as many many other factors, the trader needs the same correct environment and many other factors to be in place as well.
Pivots, Floor Pivots are calculated based off some formulas. Just plug in some numbers and out pops other numbers that somehow will tell you where the market is going to turn around....... The market is nothing more than people, yes even black boxes, algos, bots, IA systems etc... did not create themselves. How can a pivot formula product, sum, quotient or result account for the behavior of millions of souls?
Support and resistance works some probability of the time. I contest your sample size is infinity....literally! to small.....as mathematical probabilities are base on infinite sample size.... Flip a coin enough (as x---->∞) and obtain heads 50% tails 50% ...flip it 1000 times and perhaps get 43% heads 57% tails.
If you trade your idea of support and resistance for 2 months and found it did not work well....
You don't have the necessary skill level
even if you did, judging it as "doesn't work", is premature
Support and resistance work for some because they know how and when to apply it together with all its nuances. And not for others for lack and want of knowledge and training. Period.
We must be like the fountain or spring that is continually emptying itself of all that it has and is continually being refilled from an invisible source
Buy Low And Sell High (read left to right or right to left....lol)
The following 2 users say Thank You to Blash for this post:
I think S/R does work. You must understand that it is only part of the picture. Fundamental analysis and technique factor in to this also. For example, you can draw all the levels that you want on the ES prior to an FOMC announcement. They are worthless. That's a fundamental issue. Or you can draw levels in a high liquidity market and they are very valuable as Potential trading opportunities. Same levels in two very different market conditions.
The following user says Thank You to Traderjohnsblog for this post: