There are a lot, and I mean a lot of SR indicators.....but most of the ones I've seen have an average performance, meaning about 50-50.
Sometimes I feel that if you put up a 5 minute chart of anything, and just draw a bunch of completely random horizontal lines......you're trading results are about the same as any expensive indicator.
Post your thoughts.
Around 5% move the market. 10% try to follow the 5%. The rest provide liquidity.
Fibonacci retrace works great for me regarding support and resistance zones...
But draw your trend lines, that's all what you need. And max, you can watch the volume by price.
Major Pivot/Turning points, gap windows and gap fills are also considered good levels. Moving averages are good levels too. But there are rules for these levels, usually only the first bounce or two are valid, the rest are more prone to pierce through and breakout.
To increase your performance, you shall always enter your position very close to a level obviously, thus your stop will be very tight and your risk/reward ratio optimized. But not all levels are good, especially if they were tagged previously short term. So judge carefully
Finally, watch for topping and bottoming tails, they are generally good levels when they are at the very top or bottom of the chart respectively.
Successful people will do what unsuccessful people won't or can't do!
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Knowing what and where support / resistance levels or areas are is an art not a science . Using indicators to define these levels deadens your ability to detect how price will react to them . You owe it to yourself to take the time and effort to learn how to first define and then exploit SR . That said , fractals or donchian channels are the best indis for SR .
I'd like to open a discussion on support and resistance. It's becoming more apparent to me that regardless of whatever indicators or strategies you employ, ultimately you need to identify areas of support and resistance before effectively using …
In a recent survey about webinars, a lot of members expressed interest in learning more about the elusive "price action" that many traders talk about and refer to.
It is my intent with this thread to try and document price action from my point …
I believe in manually drawing S/R lines based on recent and sometimes not recent price action (if outside of your current charts range).
One example:
Look at price bang against .43 and then move down. I draw a line there to draw attention to this price point. About 30 minutes later, price returns, trades 1 tick above, and then closes low with some speed. Good time to get short. Look for signs the move down is done. One sign would be the same thing in reverse. Draw a line at .13, watch how price reacts when it gets there. Moved below a few ticks, closed high, then bounced a few times on the way back up to the resistance line we have from before. So, will keep an eye out here.
There is now a triple top there at .44 in play, but I would rather have a break and then a sign we are moving down again personally. And, we may be in the start of another push back to 60s from the 20s here. I am flat at the moment.
Hope that may give you a new thought on S/R possibilities.
Gary
As consistently profitable traders.. "We get paid to wait, and we wait to get paid."
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Well, that turned out to be a nice place to get in after all. I didn't see a place to get back in, and being so close to the pit close, wasn't eager to take a position anyway.
Have a good weekend!
Gary
As consistently profitable traders.. "We get paid to wait, and we wait to get paid."
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Nope, I don't filter anything but I am also more of an artisanal trading if you want hehe
I follow price, pattern and time... No indicators: just moving averages.
Successful people will do what unsuccessful people won't or can't do!
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I havent found any of those to be consistently strong . Remember - every market is different and the same traders are involved each trading day in their respective markets so that in itself carries a lot of weight as to where price is going to hold . For example , the markets I trade each have a personality and one will usually see a recent high (resistance) thoroughly taken out in a bearish market before the next leg down and another will usually see price crater without much retracements to a nearby resistance level in a bearish market . Knowing your markets intimately is key .
Personally, I like to just look at Point and Figure charts to find major support/resistance areas that price had been trading in past couple of days. Then draw lines manually on charts that I'm trading off with to make note of those areas.
