I know you mentioned it somewhere in this thread, but which levels in your picture do you regularly use? Just the ones with confluence, or every level on there?
I use ALL the Support and Resistance levels! Just to be clear I look for a set up around that particular level. The confluence numbers are their to help me improve my odds and as a guide to when "other" market participants might be entering the market. Only the S/R table in important, everything else is just for information
After you define the S/R levels for the day, what fime frame you use for your set up and to enter/exit the market? Waht is your set up?
I will start documenting these for people soon my friend. Just been a bit busy. I want to do a good job of it, so everyone benefits
We just had a big move down apparently due to a false report about United airlines. This from a friend of mine "United AIR LINEs news saying they are going bankrupt. But UAL says the news is wrong and they have halted trading" "their is correction. Bloomberg just said United did not file for bankrupcy" We cannot control news, that is why it is important to concentrate on controlling your risk first! and profits second! Always try to get yourself in a situation where "you cant lose". I have described my management style for members of the thread in previous posts. That thinking is a very important part of my method. Not losing money is the most important thing. Its also Warren Buffets first rule of investing, he copied me
Just to be explicitly clear for everyone in the group. The ONLY levels you should have up on your charts are the S/R Levels in the black column. EVERTHING else is purely for reference and confluence
Cheese, I see price movement that way too. There is just a series of gyrations, cycles, oscillations, etc. from open to close. And of course, cycles within cycles. Some of the cyclical gyrations line up with Diagonal lines, S/R lines, Fib numbers, or moon cycles, or tides. Some don't coincide. The ultimate goal is to successfully trade as many oscillations as you can during the day. If you look at a chart (5 min ES for example) that has the S/R lines drawn on it, there are market turning points that coincide with the S/R lines; however, there are many turning points and whole ocillations that don't line up with S/R lines. I want to trade those moves as well. I am not criticizing anyone's methods. IMO, there are many ways to trade. Find one that makes sense to you and works for you (read as; find a method that harmonizes with your unique mix of CNS neurotransmitters, personality traits, right brain/left brain dominance/interaction, and neuro-optical functioning.) In addition, some individuals find that any system works (even throwing darts) as long as it is used with excellent money mangement. Apparently, S/R 'works' very well for some folks. Interesting discussion...thanks to all.
Wow we have some seriously smart dudes on this thread, as someone who makes a living out of drawing straight lines on a chart, I feel humbled by the amount of stuff you dudes know. Respect. I had never thought of finding a method involved such individualised complexity. :eek:
This post dovetails perfectly with my trading plan revisions to take signals that are only close to S / R. I have found that the chances of success are much better around significant S/R levels. All too often, I may take a signal and become choked in congestion and get stopped out after agonizing for several minutes. Signals taken at S/R levels tend to tell you very quickly if you are wrong or right. Reading S/R levels has allowed me to improve my price action reading ability tremendously. I'd like to say thanks fo the OP and the many contributors at ET who are generous enough to contribute some nuggets of wisdom and sound advice. Good trading mentors are rare. All the best, Stone
Thank you for your kind words I am glad that my ramblings are helping you and others And thank you to all the contributers to the thread. Can you believe this thing has only been going 5days?! Amazing what can happen in such a short space of time.