are you willing to post screen shots of statements. I am the only one posting screen shots of trades live do you guys even trade? post screen shots like I do
Chill out man, don't take my words too seriously, we're not all here to masturbate our ego and build a virtual reputation as a trader online. If you are happy with your trading good for you, and I'm happy for you.
I agree on padutrader since he's just spamming it seems. But let's flip this statement of yours. Obviously, you have not (yet?) made S/R work and you have problems defining S/R. Why are you convinced it works then? Because you read it in a book...? Something else? In this game, you need to question everything. Don't accept anything you have not been able to test or verify yourself.
Strength of the S/R, meaning more bars to left and right that have lower highs in case of Resistance, more passage of time of not violating this high makes this R price harder to violate. They are only magic numbers by those who profit by them, but until you have a close beyond them by more than few ticks and beyond, former pivot highs might be an area of running protective stops as many will have their stops just beyond these areas. Support can be same as Resistance but also can be far different since markets often go into congestion near lows. Tops can decline in decreasing non volatile manner, but often the faster a market rises tends to become a quick ride down. The lesser S/R areas are usually for entries within a wave of same trend, even chop has trend if your trend identifier is different than moving averages or HH/HL Just remember, some traders look at the trees instead of the forest and vis versa, neither are wrong or correct, depends on one's trading plan. http://thepatternsite.com/index.html Much luck to you.
There are two issues that you need to address; First, defining the s/r levels that are significant, and second, defining the conditions that would prompt action, i.e. what does price have to do to make you place a trade. As for S/R, I use the previous day's high, the previous day's low, the opening price (RTH), chart swing high, chart swing low, and the previous day's close (RTH). If those levels make sense to you, the second issue is what does price have to do if it reaches yesterday's high from below, to make you sell it is long, short it, or buy it to establish a long? Price can only do one of three things: It can continue (breakout), reverse, or go sideways. This is where the work of developing a trading plan really begins. What kind of trader are you? You mention that you have a plan that allows your to maximize profits during trends and minimize losses during consolidations. What is wrong with that plan? Now use those levels as areas where if your current method gives a sell, then sell, or if a buy, then buy. If you are a day trader the only s/r levels you need are those I listed. You will do yourself a favor if in addition to those you pay attention to the midpoints of ranges and swings.
PAAddict, You ask a very good question. In my opinion, you define support and resistance based off of what you clearly see on the chart. Here is a chart. So how do you draw support and resistance lines. See below how I do it. Anything that looks like a support or resistance line, I draw. Question: How do I know if the line I draw is relevant??? Answer: I worry about that when price get to the line I draw. All i can do is wait and see.
I call S/R Clusters, so M1 chart, Price has dropped fast and reversed from a price for >5mins, your odds are then pretty good it'll go up not 100% maybe 70% but tight SL ( not too tight, blip under to hit SL's typical ), but still should get a good R:R out of it, with some patience. Historic S/R just gets trampled by Momentum/Trend way to easily, might cause a pause while suckers get in, then it breaks and there is a quick sell off, as those SL's get hit and more sellers jump in.