How do you trade support and resistance?

I think is very true and every good trader knows it. Minimize your losses. Before you enter the trade, you should know where you stop loss is. There should always be a place where you say, "price has gone against me to this point, and now i'm out of this trade." Staying in because you "know" price can't continue going against you wrong and will eventually kill your account.

I personally trade only with s/r levels based on a wkly chart and then for entry and exit I use the 4hr tf along with pa confirmation. I have been trading since 3yrs now, have blown alot of accounts but while going through my personal journal I figured that this was the only way for my psychology. I would suggest you to go through james16 thread and silent service method thread. The first one I think is the best out there which explains pa in detail and also how to get confluence (I personally use only d/w/m pivot levels, round number and s/r based on a wkly chart).

my 2pips

Kind regards and good luck.
Kashif

Support and resistance areas are decision points and price tends to not like to trade at those levels for long. This is what I use to decide:

 

1. Confluence (fibs, multiple TFs, pivots, MAs, etc)
2. Divergence (with an oscillator)
3. Trade with the trend
4. Cut your losses short
5. Let your profits run and add to a winning trade when the opportunity arises

in my view the short trade at resistance occurred earlier (where the blue arrow is) and worked. After the first test I would not be take the next test because price came back too quickly and did not get anywhere near to the lows ie no follow thru on the selling.

Looking closely at the chart the tall green candle does not quite reach the s/r line and so you may not have taken the trade but the market is not exact and you have to work around that.

After that it all looks like sideways chop to me. Everyone sees different things in the same price chart but I don't see an edge here.

My perferrence is to take trades as close to to the s/r levels as possible. Waiting for confirmation from candle signals or indicators just increases the size of stop you need and if the s/r is going to work its going to work regardless.

I would like to start an interactive thread about support and resistance trading on the higher timeframes but I don't have enough vouchers to start a thread in that part of the forum. Are there someone else who will do it for me?

bump. if someone does this please link. I'd love to participate in that. I love s/r, but haven't had anything to contribute here that wasn't said.