I don't post during the trading day but this was my realtime thought process. right now imo, the path of least resistance is up ( red zone - resistance turned into support ) but there are lower highs above and if price doesn't break through that then back to 4500. For the record, I do not trade overnights.
Yes, that long trade at 4203 was a layup being that it was the mid point but I didn't trade it. Funny how we are back down there now. Lower highs, lower lows, yada,yada,yada!
DB, the range you've drawn is pretty tight. I would have drawn the lower limit at 30. Is there a specific reason that you did not?
The range wasn't drawn by Db. He simply used the previously posted chart to highlight an entry arrow.
You are right, I'm sorry...should have read more carefully. As the "correct" drawing of zones of congestion is pretty vital, this thread is another great one in terms of context...
Actually, in terms of intraday trading, they're not that vital at all. Unless a particular zone or level is important to a larger group of market participants, e.g., those who are trading hourly or daily bars (or weekly), price can cut through them like a hot knife through butter, which is a chief reason why daytraders are so regularly on the wrong sides of trades. Anticipation of S/R becomes expectation becomes certainty, and suddenly there you are out there all alone watching price take off in the opposite direction. But I've gone into all this repeatedly, which is one reason why I have so many posts. I'm going to have to rely on those who are interested to "follow" me, i.e., click my name and Follow. Or there may be some way of determining which posts have the most Likes. I haven't looked into it. I also suggest reading the first few chapters (about 30pp) of Market Logic, which explains why price behaves the way it does at certain levels due to the participation of different "classes" of traders.
But even if price just cuts through them as if they were not even there - because there is no interest anymore, or the other side is stronger - don't they keep their meaning as a reference level? Like 30 in the example above, where one couldawouldashoulda initiated a breakout trade. Thanks by the way for the setups at TL. But all those have always be seen and tested within the context, right? Specially if one is trading the lowest timeframes. I began to see those symmetrical moves away from hinge levels more and more (yesterday was another example), but even if it sounds stupid, I don't really know which conclusions should be made. One should be prepared for symmetry after a move in one direction, which comes back? Or one should wait for the move after both sides were tested out? Yes, I know these are questions which could be solved by testing alone...but if I start doing this it all becomes very complex in terms of integrating context etc.