is it just me or the support and resistance has no consistency i mean i try to use it but it's like 50/50?
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Hi :
Not all the support and resistance have equal strength or weakness, here are some criteria which i learned from the literature.
What makes them stronger:
1) The higher the time frame that you draw these areas from .
2) The fresher they are .
3) The number of times, price has tested these areas, between 1 to 3 is good, more than that as the number grows it become more susceptible to be broken.
Untested ones, are untested, so it is 50-50.
4) If once broken , they are weaker, but the same area after that may well works in reverse mode (a Resistance change to support or vice versa).
5) Confluence of the same area of S & R on multiple TF.
there are several others but these are most important ones.
I hope considering these criteria , you can give us a better percentage , when they are stronger ones.
{image}EURUSD M5 IOF Looks Crazy But I’m going Long
Ignored
As i mentioned before , when we have NSH followed with NSL (or vice versa) in a same swing, or repeated expectation failure, it is indication of, complex correction , instability of price and indecision of traders. in complex correction i don't usually take a trade unless swings expected to have range of more than 20 pips.
In this situation, trend from higher time frame is bullish, so i believe you may be on the right track.
Hi all - Just a word of warning about market opens.
I placed a sell trade on US30 a moment ago and had a huge spike which stopped me out around 20 pips higher than where I placed my stop. I thought I was risking 15 pips I actually lost 35 pips.
Hi all - Just a word of warning about market opens. I placed a sell trade on US30 a moment ago and had a huge spike which stopped me out around 20 pips higher than where I placed my stop. I thought I was risking 15 pips I actually lost 35 pips. Be careful of spikes. {image}
Ignored
This is one reason i started to trade Futures and went away from those crappy CFDs! Happend to me way too often. CFDs tend to have huge slippage. This can impact your winrate tremendously!. Feel sry for you Pete. Felt like getting robbed to me!
Hi all - Just a word of warning about market opens. I placed a sell trade on US30 a moment ago and had a huge spike which stopped me out around 20 pips higher than where I placed my stop. I thought I was risking 15 pips I actually lost 35 pips. Be careful of spikes. {image}
Ignored
I think it was because of the news at 8:30 a.m. ET the IPC
{quote} This is one reason i started to trade Futures and went away from those crappy CFDs! Happend to me way too often. CFDs tend to have huge slippage. This can impact your winrate tremendously!. Feel sry for you Pete. Felt like getting robbed to me!
Ignored
Thanks for your comments. I moved from Futures and trading YM to CFDs as I have not sufficient funds to fund a $5/pip (1 contract) move with Futures on the YM. With CFDs I was able to trades as low as $0.10/pip if I wanted to. The loss on that trade wasn't too bad but the moment I have the capital to trade Futures again I will. In the meantime I will be wary of market opens. I suspect I just got unlucky on that one with the news event/ market open.
Trade #1 +14
Thought I was going to get a much bigger move down on this one so I took profit on 2/3 and left 1/3 at BE which got taken out.
Looks like I got lucky on this one as price continued higher immediately afterwards.
Ratios & Harmonics: a Different Way to Trade
