I try NOT to over COMPLICATE it.
I look for Big Boss turning points and start there. Then I move to a Boss chart, look at the structure and then move the lines. Finally I look to fine tune on the worker and use confluence points at these levels.
It's a zone and not an exact price point. I don't class any support in terms of "strength" only the big players control that and it changes on a dime and at their will.
Also you don't need support lines 500 pips away from your price unless it is part of your trading plan.
I find LESS IS MORE when find S&R.
Understand that we are identifying these levels to show us the footprints of the Big Boys and nothing else. We are trying to identify where they start loading up their positions, where they add to their positions and where they take profits. We are NOT looking to identify every twitch, nook, cranny and knee jerk, only where and when the Big Boys move THEIR money.
Unfortunately, it is not as easy and simple as that because there are so many Big Boys each doing their ""thing"" which puts emphasis on different levels. There are Big Boys trading short time frames, Big Boys trading intermediate time frames and Big Boy investors trading longer time frames so we have to ""tune in"" to the levels on the time frame ""WE"" are trading. Do not worry too much about this until you get really serious about trading. For now, focus on identifying these levels and as Nathan correctly advises, they are PRICE areas or zones and NOT a specific PRICE level. I have explained the reasons for this many times but, to summarise, this is due to the Big Boys having to load and unload their positions in incremental volumes so as not to ""rock"" the Market.
So, for actual trading, we are only interested in the immediate support below where PRICE is now and the immediate resistance above where PRICE is now so those are the only levels we enter on our chart. When one of those levels has been breached, we go back and add the next level above or below and so on.
Always remember that in PASR, PRICE is King, Queen, Lord and Country and the most important PRICE level is the CLOSE.
I look for Big Boss turning points and start there. Then I move to a Boss chart, look at the structure and then move the lines. Finally I look to fine tune on the worker and use confluence points at these levels.
It's a zone and not an exact price point. I don't class any support in terms of "strength" only the big players control that and it changes on a dime and at their will.
Also you don't need support lines 500 pips away from your price unless it is part of your trading plan.
I find LESS IS MORE when find S&R.
Understand that we are identifying these levels to show us the footprints of the Big Boys and nothing else. We are trying to identify where they start loading up their positions, where they add to their positions and where they take profits. We are NOT looking to identify every twitch, nook, cranny and knee jerk, only where and when the Big Boys move THEIR money.
Unfortunately, it is not as easy and simple as that because there are so many Big Boys each doing their ""thing"" which puts emphasis on different levels. There are Big Boys trading short time frames, Big Boys trading intermediate time frames and Big Boy investors trading longer time frames so we have to ""tune in"" to the levels on the time frame ""WE"" are trading. Do not worry too much about this until you get really serious about trading. For now, focus on identifying these levels and as Nathan correctly advises, they are PRICE areas or zones and NOT a specific PRICE level. I have explained the reasons for this many times but, to summarise, this is due to the Big Boys having to load and unload their positions in incremental volumes so as not to ""rock"" the Market.
So, for actual trading, we are only interested in the immediate support below where PRICE is now and the immediate resistance above where PRICE is now so those are the only levels we enter on our chart. When one of those levels has been breached, we go back and add the next level above or below and so on.
Always remember that in PASR, PRICE is King, Queen, Lord and Country and the most important PRICE level is the CLOSE.
Keep DISCIPLINE, control RISKS, and don't destroy your DREAM easily.
