I'll read that thread after i wake up later (about to go to sleep). I read on a site called learncurrencytradingonline that some of the best traders in the world win 30-50% of the time but win huge and lose small.
Please excuse my adding to the chorus of other members in some of your threads asking why you're starting off so many threads here, and just offering my respectful suggestion that reading some of what's already here may perhaps be more helpful to you, Wallo.
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You'll figure it out when you inquire as to why it was historically referred to as Supply and Support, not Resistance and Support. When there is massive Supply to the downside, where do you think "support" will occur? Answer...only where it proves to appear. It's all reaction until it proves to be action. Additionally, I wouldn't predicate "support" on volume...because volume largely lags valid turns in the market. Base it on price action and then only risk based on whole number moves like $1 $3 $10...or whatever floats your boat (Wyckoff method of risk mitigation). If you're looking at a point and figure chart using those settings and the red is very long indeed...it may not be a time to guess about support, but let it play out.
Just my two cents.
Oh, and that would be a traditional point and figure chart(s) based only on price, not ATR.
Last edited by Smalltime; August 22nd, 2015 at 08:04 PM.
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Support and resistance are not meaningless, but it is usually foolish to draw a level and expect it to simply hold. The levels on charts show possibilities, not something that is an absolute. You have to see what price does when it gets there. The level you have selected can tell you something important, if price respects it, and also something else if price just passes through it. But "support" and "resistance" are just reference points, not some kind of brick wall. You need to interpret potential future price action based, in part, on whether they are respected or not. By the way, in general potential support and resistance do not hold, so you just want to have a heightened awareness to pay attention to price action when these possibly significant levels are approached. The entire subject of price action trading is kind of involved, and may take more work, but that is a start on it.
On another front, I noticed that you are now among the top recent new thread creators on futures.io (formerly BMT). (You have created more new threads than I have, after over 1,700 posts.) That is not a bad thing in itself, but geez, could you just learn how to use the search function? There is a "Search" box at the top of every page, and you could try out some of the search possibilities there.
Every single thing you have made a new thread about has been covered somewhere else already. It might make your journey simpler if you just started to read -- and ask questions on -- the threads that already exist. There's a whole lot of material there, and not everyone is going to bother to respond to a new thread on an old topic, so you are losing out by ignoring what has been previously discussed.
Not meaning to be critical, although it may sound like it. It's just that there's already a wealth of stuff here that could help you, if you look for it.
Good luck anyhow, however you pursue things.
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If that got you offended and mad, just imagine the roller-coaster emotions that the market can subject you to.
Keep you leverage low and gauge how market movements affect you. I tend to be quick to realize when I am trading too large and most of the time my ideal exposure is <50%. Yours will of course be different, but it is important to know when your emotions are affecting your trading. Only experience will help with that.
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I'm waiting for the Market Wizards Book, i'm also going to be getting a beginners book on investing and economics (there isn't one book on amazon that doesn't have at least one one star rating).
I wonder; are there any traders that are successful like the ones interviewed that use candlestick formations and patterns, price action? Order flow sounds decent, but you need a bigger account size i believe to start with that.