Price Levels and trading.

Discussion in 'Trading' started by retire45, Jul 7, 2009.

  1. After suffering a few months trading Futures and finally arriving at some stability something is becoming clear to me: THE ONLY REASON FOR PRICE LEVELS is to use to enter positions where the price HAS REVERSED but is still hopefully within proximity of a defended price level..

    Trading at exact price levels is a game that ultimately doesn't work.. as it basically is top and bottom fishing. You will frequently get stopped out and worse, get out of trades too early to offset losses due to the first problem. I say "worse" because you need to pile on the points on big days and give up or even scratch small days.

    Took a trade on NQ short today 1433 area and covered 1418 area thinking (price level) that should be it but 1404 happened later..

    The point is:

    Enter trades just as price turns in your favor with a price level close by..

    Keep at least some of the trade until price reverses regardless of price levels, taking back some of your profit but at least you should keep the bulk of the move. You never know when the markets decide to simply wade through supposed price levels.

    This does leave you with probably 2 to 3 trades a day by the way..

    Could be I am missing other factors that decide what is a cut through price levels day..