what is good support what is poor support what is the price action that defines this support area. (ie good or poor support) do we need a perfect bounce? pay attention to those WRB's wide range bars. http://www.elitetrader.com/vb/attachment.php?s=&postid=1913961
I like that post on pace. As far as the pic in the WRB, what are you suggesting? Before I opened it, I assumed you were saying that WRB's you want to stay away from in a buying at support in that trade. Then the next bar was a good show of support so just curious.
Especially in a short time frame--1-60 minutes and esp in emini SP's for example the approach describe seem to invite getting pounced upon by folks gunning for stops. When S and R are obvious to a million people staring at the same screen, some bunch are going to gun for the other gun slingers buying at resistance. I've heard "experts" suggest staying away from round numbers for example. William Eng's book (can't recall title) deals with such setups a lot. But it was written 15(?) years ago and a lot has changed in daytrading since then. When 50% of NYSE volume is program trading, the old wisdom gets in trouble unless you have deep pockets. as some said above, I'd work with some other indicators to test if support is holding--Tick, volume, rsi for example. Perhaps not taking every set up. Let price poke below resistance as stops get hit or shorts jump in to sell below support, and then buy several ticks above the support line. cover if price then turns and goes below the last low below support. taking profit and stop protection is a whole other topic. also as suggested above, the trend context (up day, favorable MACD) would temper.filter which trade you would lean toward--buy at support or sell resistance breaks.
WRBs exist in any time frame. So what do they represent? To me they represent an expansion in volatility, it is a point in time, more so price, that one side was able to dominate COMPLETELY. Donât just look at the now, look at the history they tell a story. Saliva talks about PMT, Price Momentum and Time. I have taken/interpreted some of his concepts and have PMTV (& Volume) http://www.elitetrader.com/vb/showthread.php?s=&postid=2008342&highlight=#post2008342 http://www.elitetrader.com/vb/showthread.php?threadid=144884 WTF Trader a pro S/R trader http://www.elitetrader.com/vb/showthread.php?s=&threadid=131353 Good post craig
WTF Trader made 11 posts on about 2 days 15 months ago. Then took off in a hissyfit. What in the world makes him a pro trader???
can you you tell me, why, after a wide spread up bar, the market will suddenly tank and go into a downtrend??
No that is for you to work out. For you to construct the scenario that this trend may be operating in. There are no 100% outcomes, but 1) you may be able to catch a good portion of the 2nd wave & 2) your entry and stop will give you a good R/R trade, on a favorable expectancy http://www.elitetrader.com/vb/showthread.php?s=&postid=2014358&highlight=#post2014358