To make it easy, we trade the price of the underlying asset (always vertical because the price can only go up or down) and since we need to make a desicion we "need" to plot another axis to make a visual representation of what the hell is going on in a way that our little brains can understand and decide from there
there are NO variables in a Forex chart, or ANY chart, only the price increasing or decreasing !! we ONLY need 1 point of reference to make solid desicion, thats why some people always say that "price action" its what matters in the end.. you are just watching what the price its doing and reading the traces it left
whatever else you add its just complicating the process and its no longer a "variable" anymore
To make it easy, we trade the price of the underlying asset (always vertical because the price can only go up or down) and since we need to make a desicion we "need" to plot another axis to make a visual representation of what the hell is going on in a way that our little brains can understand and decide from there there are NO variables in a Forex chart, or ANY chart, only the price increasing or decreasing !! we ONLY need 1 point of reference to make solid desicion, thats why some people always say that "price action" its what matters in the end.....
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But price react to some level as support/ resistance right?
{quote} But price react to some level as support/ resistance right?
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in my opinion support/resistance levels are price levels where long army and short army fight each other the most, so they left a sort of horizontal lines in the battlefield, once price break through these levels it could mean one army probably will lose their battlefield and price could go to that direction for a while until two armies have a big fight again.
i'm really bad on plotting SR levels therefore i think higher highs and lower lows make more sense to me. if a small new mountain peak formed, and if it is a higher peak because there are already 2 or 3 lower peaks before it, i think it's high probability price will form another higher peak afterwards and a good chance to enter long, that's also what i think the proper context.
dont know if i'm on the right track. still struggle to find a proper pattern with high probability.
{quote} in my opinion support/resistance levels are price levels where long army and short army fight each other the most, so they left a sort of horizontal lines in the battlefield, once price break through these levels it could mean one army probably will lose their battlefield and price could go to that direction for a while until two armies have a big fight again. i'm really bad on plotting SR levels therefore i think higher highs and lower lows make more sense to me. if a small new mountain peak formed, and if it is a higher peak because there...
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Basically; support/resistant levels are very much important to understand the nature of any trend; I basically use the daily time frame mainly to point out any important level of this market.
{quote} Basically; support/resistant levels are very much important to understand the nature of any trend; I basically use the daily time frame mainly to point out any important level of this market.
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Why don't you go to the higher timeframes like weekly or monthly, I think the higher timeframes have less noise.
