Combining supply/demand with support/resistance

I've been a pure supply and demand trader, having good results for the past couple months. It is going well but I also have bad days that could cost me the past 2-3 weeks of profit. I could blame it on poor risk management or emotions, but I want to blame it on my winrate this time. I have never calculated it, but my monthly gains and consistency speak for itself.

I gave it a thought on how to eliminate these bad days and to improve my win rate and this is by adding support and resistance on top of my SD zones. I was never a big fan of them, but after backtesting and forward testing, I can tell that I hit more winning trades by adding this additional confluence factor.

However, and I must admit, I never really understood when a supply demand and support/resistance line/zone will hold or not. It always felt like gambling for me so with that mindset, I decided to simply have a strict money management, to go for at least a 3:1 RR and so far it has proven to be good.

BUT, I want to truly understand (since this is what I am basically trading) if there are signs or not when any of these zones will hold.

Quick summary of my strategy:

1.) Identify supply demand area on the current timeframe and one time frame higher
2.) Identify support/resistance on the timeframe you trade (I use some random SR indicator to draw it for me, but does anyone know a really good one? Regardless of free or paid)
3.) I rarely take first touch trades and wait for a sign of reversal as soon as price reaches these areas

These are my criteria to stack the odds to my favor but I am dealing with the following problems:

1.) My take profit is usually 3:1 but only because I do not know where else to take my profits. I thought about the next big problem area but often, price doesn't even reach any of the SD or SR areas and turns against me already. Any advice on this?
2.) I never know when a zone will hold. I think that no one call tell if it will hold 100% or not, but what could be some indications for it? Since this is my biggest dilemma
3.) I thought about waiting for the M1 trend to change and then trade in the direction of the trend, but sometimes price bounces and just never comes back and it sucks not "buying low, selling high" and missing loads of pips.

It might be tough to answer these questions and at the end, I'll have to backtest and forward test a lot to find my own answer but if someone is out there that trades SD and SR as the main strategy and found great success with it, I'd love to speak to you (regardless if in the public forum or via direct message).

Thank you for anyone helping out!

I think you will always have noise on the M1. Only hope would be move to higher TF and watch for "M" and "W" setups to appear. My two cents! Wish I could follow my own rules!

S/R zones and other key pivots/zones are central to my trading system. But you have better results with S/R zones from the daily or weekly time frames than from lower time frames. You look for price action at the zones and watch for a setup based on the candlesticks printed. A confluence of factors around the S/R zone is likely to give a more confident entry.

Trade safe and prosper.

KP

M1 is just pure noise.

I also use both and I agree with using the higher timeframes for reliability.

I can also trade M5 or M15, that is not a problem but the time frame is not my concern here.

There's a lot of noise on M1...

Have a guess what TF that is?

Rather than touch-trade, if a trader trades PA on the test of the zones instead, the above question becomes a non-sequitur.

In terms of what those PAs look like, I've got the feeling that one would be hard pressed these days to find any trader on FF willing to discuss details.

I am willing to listen and to learn

I always find Simon digging out these threads and and have to throw my tuppence in for some reason.

Firstly, 99% of traders who find Supply/Demand end up quitting and look for another "system" after the initial honeymoon period.

Secondly, there are many ways to skin a cat. You can trade zones, with or without PA, reversals, continuations, all across a vast array of time-frames and pairs. If you throw in M1 you're looking a recipe for over trading, eye strain, trigger fingers and more importantly loss of view of where price is going and why.

My humble advice is to drop M1. All the quality M1 zones are always visible on M5, but even that isn't enough alone. You need a higher timeframe reference to know where price is heading and which zones to avoid, when to scalp and when to run.

It's going to take time and probably years until it clicks into place. You'll need live screen through all environments such as news, trending or ranging periods while consistently refining your method. You'll need learn where pools of liquidity sit on a chart, where stops get run over usually above and below swing points.

PA is very discretionary. It's something you have to understand yourself based upon your own experience.