Dislikedwell wont aint broke dont fix it, you have a strategy you use that works for you, so all is good.
When you say the more a level is tested the stronger it becomes, I sorry but i dissagree.
When these areas are created there is an in-balance of supply and demand at these levels, so there is either more buyers or sellers here. When price comes back to test it, it will remove some of those buyers or sellers whichever was the stronger. The first test is the best time to trade it, then after that it has more chance of being broke. I see it all the time,...Ignored
Fry,
Thats cool....there might be a balance between sup/demand in these areas but they are usually areas where price will pause (and sometimes be rejected). but there is some sort of struggle between buyers and sellers. So when u say there are "more buyers than sellers ", I view it a little differently. with every buy there is a sell so there can't be more of one, than the other so to me, it's a matter of who wants it more. Will the buyers/sellers refresh their orders or will they lift offers/drop bids to make way for new highs/lows. It's strange how prices break through an area and make new(seemingly because there are not enough sellers) and suddenly, for some reason at some level, the sellers magically find enough orders to push the price back down to where it was before.
It's just a trap to catch longs and shorts in the wrong direction. smaller TF's will give a better look into these areas that create these hesitations or reversals. There is obviously much more than just theses levels that we can see on the left side of the chart that create pivots. Past and current PA is one of the things that can give great clues as to the direction we might be headed next.
As I mentioned before, I use fibs and they can be a very good tool but I feel there are other tools that give me a bit more of an advanced warning so I can get into a trade before the herd.
Good Trading