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On the NQ, Shorting at the resistance zone down to support zone would've been a nice short trade. Long off of support pre-market would've been a nice long trade.
This is a reply to a post from a looooong time ago, but I thought it was worth responding to.
yes, MM relies upon some voodoo to take a range, in reality 64 bars are no different than 65, 67, etc, but at any rate, it is an attempt to establish a swing period high and low. From that swing period, the most important levels are the mid point (4/8 in MM speak, but 50% retrace in fib land) and the mids of those (25% and 75%. Everything is nicely subdivided into halves and so on.
my argument for any system based on a swing hi/lo and 50% retracements (and subdivided 50% retracements) would simply be, take any swing high in the market and there will traders in pain there, and any swing low there will also be stuck traders, doubling down on a loser to get out at b/e tends to happen around the 50% area. This is a fairly common trading technique, no matter how long the 'don't add to losers' mantra is repeated.
The most common fib retracement levels are extremely close to MM levels - 38.2% fib vs 37.5% MM line (3/8), 50%, 61.8% is close enough to the 5/8th line etc. MM is 6/8 fibs are 76.4 etc. Not much in it really.
Are they perfect? no. Is anything? no. I find they help me establish a reference for where subdivided retracement areas are, and quite often they are a direct hit, or very close. If the market is bullish and wants to pound straight through a level, nothing in fibland or MM or pivots will stop it. Price action and real time trade trumps all, but they do help me.
