This debate can go on forever, as S/R levels will be advantageous for some of us and useless for others. To me they have proved to be good reference points. I know floor traders use them, what the market does near these levels is imprinted in the price action, which can either be understood and/or misunderstood.
Use what works for you and forget all the rest. Never care about what others think about your method, the only real benchmarks are return and risk. And try to avoid using things that are commonly known, because many traders will use the same stuff. You have to be ahead of the others, at entry and at exit.
I have determined that the indicators that I use on daily and weekly charts are much weaker on intraday. What I mean by weaker is that the frequency of them being right is much lower. However, they do give useable signals the result in good profits if used properly. In other words, my real time research suggests that starting small with probes and raising size, does give good profit, because it eventually catches the big move. Ideally, I would like to be stopped out small 2 or 3 or 4 times and then catch a good one. Interestingly, the strongest signal on very short term chart is a bounce off of BB either way with the end of the bar closing in the direction of the bounce. I try to trade with the following mindset even when positional trading: "I don't know for certain where a market is headed at any time, so don't bet the farm"
a weaker system for intraday requires strategies such as probes........new term for me afte r 5 years ...dumb me........that strategy is actual a very timid approach.......because u don't have confidence in what you are seeing.........nothing personal just happens to be brutally honest........the opposite approachis required for long term success..........enter full throttle and scale out as you go.........not scale in.......this is nothing like dollar cost averaging in stocks.........get it quick while most are stunned and amazed AS U PUT MONEY IN THE BANK BECAUSE U HAD THE PATIENCE TO DEVELOP A VERY CONSISTENT EDGE OR ADVANTAGE..........JUST MEANS MUCH BETTER THAN AVERAGE TRADER HAS........DOESN'T MEAN U R SMARTER BECAUS E THAT IS A DISADVANTAGE.........MY BROTHER IS BRILLIANT.....HE FIGHT WITH PPORGIE WHILE PORGIE SAY,,,,BROTHER, SEE THE 35 WINNERS IN A ROW LAST WEEK........MUCH LESS THE 90% O N MANY MORE..................the problem with s/r alnd all that is it is low percentage accuracy stuff........your conficdence can't grow usig that......for long anyway....an expert might use it, but i can't eunderstand that eitgher as his system should tell when the turn occurs anyway, regardless of why...such as nesws, rsi %r stcoch macd yada yada yada.....SR IS WHY...why is irrelevant.........why is irrelevant......S/R IS WHERE....where is irrelevant where is ierrelevant.....PORGIE SIGNAL IS WHEN........when is deadly important when when becomes very high percentage accuracy stuff..................when .......meaing almost right now.......whenWHENWHEN WHEN ..U C TH E SIGNAL..............SIGNAL SIGANL .......I COULD GIVE MY SYSTEM AND 99 OUT OF 100 WOULD NOT ACCEPT IT AS IT BEGS THEM TO TAKE THE MONEY AS THE BRILLIANT GUYS CAN'T HAVE A BIG NO DEGREE DUMMY SHOW THEM ANYTHING THE NOT SO SHARP GUYS {THAT CAN MEAN EXPERIENCE LACKING NOTHING PERSONAL INTENDED} WOULD NOT BENEFIT BECAUSE THEY SIMPLY DON'T KNOW WHAT THEY HAVE IN THEIR HANDS AND ALL THE EMOTIONAL TRAPS WOULD SOON HAVE THEM BROKE OR DISILLUSIONED TO EXTENT OF QUITTING......... AS IS NORMAL ANYWAY........MOST FAIL.......NOT ALL..........
Various S/R levels in my experiences provide good reference in regard to profit targets. A basic, though typical example would be opening a position above daily PP which is 8 points below R1, after some time the price is approaching R1 level at which point there would be (most of the time) more selling activity forming. What happens at that level? Nobody knows, the question is - why give profits away? Why not bank say 1/2 or 100% of your position at that level and if the R1 does not hold then re-enter. S/R levels are reference points, no more than that IMO.
all that is true..........but is that the best you hope to ever achieve? you can do 100% better than that..........that is old stuff that has become more and more undependable time wwears on......
i will say romik..............anytime u make money u have just joined the elite club...only losing is bad.......be is good .....winning is great..........losin gis bad......exitin gwith money in that siruation si is a good beginning strategy.........very good........
the same question of profits giving away should already be taken care of in your system.......default........