More than 80 percent of all probes above resistance or below support will fail. Waiting 1 or 2 bars on a breakout is not enough activity to act as filter and new support or resistance must be established prior to entry.
Not sure if this is completely accurate, but it explains why buying support and selling resistance will usually work. The skill comes in taking profits and managing your exit if the trade goes against you.
Correct. However, the small number of breakouts/breakdowns that succeed if held and managed properly will more than make up for the opportunities lost by not "range" trading.
One must realize as well that most people will be wrong is assigning proper weight to different support and resistance areas.
Yes. Because I will have less activity and less commissions. In addition I wil have less chance to make mistakes on trades because the activity will be less. I know from experience that properly managed trend trades yield greater profits even though the win rate is lower.
Interesting. Well, I will go for the 80% win probability because I don't have a crystal ball telling me how long the trend will last.