DislikedCloggie - welcome back, it's been quiet here without you.
Identifying levels is relatively easy it's how to trade them that poses a problem for some people. How/where would you have put your trades during the rise if you missed the initial lift?
I mean, it's all very well saying 6021 leads to 6037 leads to 6051 but if I had placed a pending order at 6037 with TP at 6051, I'd be 20 pips in the hole right about now.
So, do you have a pending order at 6041 with TP at 6049 to give yourself a few pips breathing space just in case price doesn't...Ignored
PA is the key for me so there is no automatic way of identifying that a level going leads to the next, you need to have a look at the shorter TF's and look for signs that the testing of a level leads to continuation, momentum bars are a good indication so are other price patterns, they don't work 100% of the time, but they don't need to and letting a trade go 20 pips in the hole on a test of a level is not necessary, you can pretty much identiy within 4-5 pips that it is a no go. So that leaves you 6 false tries to get your 30 pip winner and still come out on top. Once you get better in reading the pa then it becomes a higher probability of finding the winners. Good TL's also help you in identifying the runs. If all else fails have a look at using MACD or Stochs for identifying the higher probability runs to the levels. IF your MACD is not helping you on the runup to the level don't go taking the trade. I personally don't use MACD or any other lagging indicator but it works for some, just find the lower TF trends and breakouts based on the higher TF ranges.
Others like a fast MA on the lower TF such as the 21 or 25 to identify the right runups to the levels.
