{quote} I have a question. How should one mark out the most important S/R and the less important ones? Big E says don't trade into s/r. But I found there is almost always some kind of s/r I am trading into (previous high, previous lows, etc..). This makes me confused when taking a trade. For example, in this most recent EA trade you took (see links below), aren't you selling into a confluence of 1.47500 and yesterday low? http://www.forexfactory.com/attachme...5&d=1457519180
Yes S/R can seem confusing at first. I mainly trade H1 so here is how I mark up my setup chart at the beginning of a week.
Mark last months high/low and last weeks high/low. I have an indicator that shows yesterday's high/low, big round numbers and daily open (H4 traders might want to add weekly open). These are what I refer to as static S/R and are areas of interest.
If price has recently stopped and not on one of the static areas a quick check until you get experience is to draw a line at that point and look back. If price has stopped on that line 2 or 3 times in the recent past there is a chance it will do it again. This is very important if this is an area where support has turned into resistance or vice versa. Remember that the market has a wonderful habit of repeating itself.
S/R will always be broken at some time or we'd be trading in a 50 pip range for ever
I have my own little rule called Knock, Knock, Let Me In for deciding if price is going to break through an S/R area. If price stalls at one of the areas above and does not retrace (Knock), I'll wait for the next APB and if that stay pinned to the S/R area (Knock) there is a far chance that the next APB will break through (Let Me In). This doesn't always work but on the pairs I trade and have studied it works for me. Also if you are trading with a strong trend there is more chance that S/R will be broken.
On the trade you mentioned you'll notice I waited for price to break below the previous low and checked the entry on a lower TF. There was good momentum shown by the APB and the fact that the TDI lines were separating. The MBL was also starting to roll down. 1.4750 wasn't really a worry but 1.4700 was but momentum carried price through.
Hope all this rambling helps.
Never argue with a fool; onlookers may not be able to tell the difference.
what about this EA currency? thanks alot {image}
and have good quality life, amazing happy enjoying your day
