Remember the trend change is caused by price action. More buying means more pressure on the individual time frames. And vice versa. It's just that a 5min reacts quicker,to change than a daily. Thus it has less power, too. That's the way I've come to understand it. So you can't lean on a 5_min the way you can on a daily. In the case of the euro, the hourly Appears to have flipped. I mean, the old pattern has been broken. So now I'm looking, for confirmation. Higher prices. Shallow selloffs. Upward breaks of resistance.
OK here's another way to look at it. It's the eighth inning. Pitching team up by a run. No tied. One out. Men on first and second. Batter has a 3-1_count. What kind of pitch is the batter likely to see? That's right, a fastball. A really fantastic pitcher can throw a slider down and away and get him to swing. But the batter has to look fastball. That's what he friggin Should throw. Not could, like a curve.
Sorry, wrb--, let me give an example, you can,understand. The Maple Leafs are down 3-2 in the third period to the Bruins. Again. There's a minute left. What Could happen? That's right_the goalie Could be pulled. About 99.5_percent of the time. Otherwise the coach is going to lose his job. Sooner than he will anyway cause the Leafs always. . . well, you get the picture. Peace, out. Oh, Canada!
This forum has a lot of threads by people that use s/r levels in which they have charts and detail explanations about how the derive those levels. Simply, I give no specific thread recommendation beyond just to say you can use either the forum search or start your own thread on the topic just in case there are new members willing to share their own custom use of s/r analysis. Further, there's a ton or free resources about support/resistance levels without the debates you'll see in the threads here at ET forum. You can use Google for the info or Youtube. Youtube search @ https://www.youtube.com/results?search_query=s/r+levels+trading and @ https://www.youtube.com/results?search_query=support+and+resistance+trading Like I stated before, you can start a thread on that specific topic and bring into the discussion any info you find online. In fact, I would recommend you first start your search online and then fine tune it to this forum about anything you like because the free info online has probably been discussed here at ET in the past but the stuff here contains a lot of arguments (noise). Also, remember this...its the trader that's using the method that's the most important key. Simply, you'll learn or should have already learn that two different discretionary traders using the exact same s/r levels on the same trading instrument will have different trading results ? Therefore, I don't believe one type of s/r level is more effective than another. I only believe that if someone doesn't have a good trading plan...no method is going to be effective if the trader lacks discipline, proper risk management and so on. My point, don't make the mistake and think you can be effective in using a trade strategy if all the other pieces of a trading plan is missing or lacking. Thus, I will now assume that the reason why you're interested in learning different trade strategies is that you have all the other stuff figured out prior to any type of trading.
I've been using a system that defines support/resistance very well. APA Zones. Highlights areas of interest that price has visited and gives indicators as to their strength or weakness.
If you don't like high commissions, you should go with futures. Focus on one or two such as ES. However, a small account with futures means you will need to make short term scalps as you will not be able to afford a larger stop-loss on swing trades. Intraday scalping is safest (and most profitable) in my experience. Options are good for swing trades if that is what you're into. I wouldn't even trade common stock on anything as you get hit with the PDT rule and there is just not as much money in common stock as there is options and futures. Ive traded them all. I use zero indicators, and no trend lines. Don't get caught up in the indicator biz as nothing beats plain 'ole price action. I have nothing against trend lines, but just choose not to use them. I only use S/R levels and price action. Some people can bank with their 12 indicators, but most legit traders I've met use only price action. Oh, and fundamentals are useless unless you're long term investing or there is a fed news release or something that will make conditions impossible to trade. Just keep an eye on the calendar to avoid huge news events. Personally, based on what you described i'd recommend you to trade Futures and master chart reading. You can scalp, swing, etc. with futures and they trade 24/5. Options you are stuck once the market closes and the theta burn can and WILL burn you bad one day. Also, you'll be surprised how profitable futures can be with a small account if you know how to read a chart. Finally, don't let people (on this site especially) tell you there's no money in day trading/trading in general. They're fools. I only come here for entertainment and i spend time answering people like you because I've been in your shoes not too long ago. Also, mastering the art of trading will take years and more work than you ever thought. It's the farthest thing from easy.
The only thing I would add is in forex you can cut your size down to a very small level. I've traded es and its hard to manage the size when you start out or when you're cold. It took me awhile to get used to the way the currencies trade though. Stocks are useful if you can read the sector flows. Sectors get hot and cold and you can spread out a little and trade a few ideas and swing them over a day or two. That came later.
In your opinion/experience, what are the most succesful trading styles/methods etc. Simple ones that: (in no particular) Succinctly and accurately contextualizes PA Provides repeatable..., exploitable opportunities Provides clear indication when/ where a trade has broken down Provides clear indication when / where to take profit Provides ability to manages risk / minimize losses RN
Thanks for response, do you believe that using someone else's trading method you can find on various forums and then slowly tailoring it to yourself is a good place to start just to see and understand various market patterns. how everything comes together...etc. not even expecting to make a return on it since it is not my own organic method, but strictly to experiment and learn on the way, and supplementing with chart reading practice as day unfolds
No...., because Someone else's trading method is just that - someone else's By taking someone else's - you're automatically starting off - limiting yourself to their limitations (biases..., fears..., knowledge (or lack thereof)..., beliefs - basically their internal filters) Alternative..., take bits and pieces from various sources - then piecemeal together one for yourself Just keep it simple..., straightforward..., conscise Best way to tackle this..., is to sit in front of a live chart and watch - it will start revealing itself and making sense This won't consistently occur until you transform your mind into one of a trader's Viable methods are a dime a dozen A trader's mindset 1.) takes work..., and a great willingness to change one's self..., to their very core 2.) once ya got it..., I hesitate saying everything else becomes inconsequential..., but it does diminish in significance considerably ========================== Need to learn to read PA (like sheet music - it has a language all its own) Need to create an A&M outlining everything A to Z (keep it simple.., yet precise and concise) Need to build a trader's mindset Need to create a plan for each trade - then follow each trade's plan to fruition..., without a smidgen of deviation First two are easy..., third is a bitch (to the extent you make it)..., all are absolutely necessary Try to circumvent / short circuit even one - you won't make it (and likely will start going around touting how trading successfully cannot be done) Trading successfully is not hard..., but does take a very specialized set of mental skills..., that are completely contra to the mental skills it takes to succeed in the normal world And when I say completely contra - it no exaggeration ================ You're Very Welcome Successful Journey Sir RN