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Why does Support and Resistance doesn't work


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Why does Support and Resistance doesn't work

  #51 (permalink)
 sleip 
Karlsruhe, Germany
 
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i can`t imagine how to trade without using support and resistance levels which i research and find them to be important to me.

Of Course everybody needs to know how he finds these levels and - this might be the most important thing in trading - how to trade these levels. I claim that "bad" levels also work over the time if a trader uses a smart money management. Even the best support oder resistance will fail at times i. e. when breaking news play in

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  #52 (permalink)
 
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 Devil Man 
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sleip View Post
i can`t imagine how to trade without using support and resistance levels which i research and find them to be important to me.

Of Course everybody needs to know how he finds these levels and - this might be the most important thing in trading - how to trade these levels. I claim that "bad" levels also work over the time if a trader uses a smart money management. Even the best support oder resistance will fail at times i. e. when breaking news play in

you need more technique to be able to trade it. One or a combination of Order flow, Volume Profile, Volume, Japanese Candlesticks and instruments with inverse correlation should help.

Johnny

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  #53 (permalink)
 Traderjohnsblog 
Tampa florida usa
 
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I agree support and resistance is only part of the puzzle.

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  #54 (permalink)
nb10071981
Daytona beach Florida
 
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One way to confirm a support or resistance level is the drying up of liquidity at or within a few ticks of that level.

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  #55 (permalink)
 
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 fminus 
Washington DC
 
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The title of this thread forces a binary answer of yes, no. What if the answer is yes it works and yes it doesn't work? Can s/r work and not work in the market simultaneously? Sure, because it's not about the level, it's about the trader.

You can give a new trader levels that everyone is watching and they will manage to lose money. Yet, give a skilled trader no lines, and they will be able to manage a profit. The same in reverse. So it really is pointless to debate about things like s/r because it doesn't really matter. We can argue the case for and against s/r ad infinitum.

In trading, shortcuts lead to the longest path possible.
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  #56 (permalink)
 
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I find that within identifying support and resistance, there should also be the analysis of what kind of a run do you get when your specific support and resistance get breached. This is important for risk management and identifying targets.
In my opinion, better runs are identified with better identification of major support and resistance.

Matt Z
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  #57 (permalink)
 
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 paps 
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I think again as mentioned above....it's the trader

Who is drawing this...what is expectations....what is context.

What will hold or not. What if there is no overhang resistance which we have seen...then what is next area.

Have been there...done that. It's the trader and how he..she navigated the mrkts and what if. A trade when put on has clear expectations and considers the demand supply in mrkts and also mitigates risk ...likewise support and resistance should be clear cut when putting a trade on and cut areas. Else it is lotto

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