I trade mostly in CL / and Oil ETF's and higher time frame S/R levels are VERY accurate and almost always respected on first test. Trading without it would be trading blind basically. Intra-day chart break out into a weekly resistance? FADE
rather than think of S/R as walls, it is better to see how prices react to it, coming close to it. does it race and then retrace by a larger amount? does it race and retrace by a small amount and spend time around the level?. does it crawl up and hang around the level ? crawl and retrace by a large amount sharply?. market usually gives you enough time to make decision because the big boys take a lot of time to do their work and because no movement gets traders impatient and make the wrong decision. most traders do not need help doing that,anyway.
usually the same instrument will do the same thing over time: you say it respects it. some other instruments may also respect it but after overshooting a bit, trapping some before gleefully racing off in the opposite direction. observing each one would be advisable rather than expecting something
Thanks padutrader, I just noted to try trading on different strategies and methods on 3 other instruments. This is a good point. I trade crude oil now, but would test on NQ and RTY as well
I think you have to go to the product that offers the best price action. Always ES think it is a mistake.
the Bl$%dy thing has to move …..if it does not, then even the best trader in the world looks like an idiot.
markets are total psychology. when I started I was confident but did not know anything. now I know a lot but ionically I am not confident. I have been doing things in reverse...... and if there is any weakness the market will exploit it. that is why I have been losing continuously even though my knowledges been increasing