Anyone trading purely Support and Resistance get a 70% or high 60% win rate?

iamnewuser911 said:
With decent Risk vs Reward of course.
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Hello iamnewuser911,

I am trading purely support and resistance and during back testing (paper money), I got about a +70% win rate. But when i went live, I had some losses, maybe thinking to much.

I want to be a good support and resistance trader. But i am practicing.
 
SimpleMeLike said:
Thank you J_Smith,

How do you learn to draw support and resistance?
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Drawing is the easy bit SM, but you need "confirmation" also.

Have a think about it!

Personally, I think understanding S&R is the "key" to successful trading (with experience behind you of course) - I don't really care what anyone else thinks, as they are not me:D

J_S

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I wouldn't argue against the lines drawn above...There are "typically" reactions at levels such as you've drawn above...The bigger issue is that when you have the VIX down in this 11-12 range, the reactions aren't significant enough to give you "breathing room" away from your entry...Look at that 2180 level...sits there within a 6-8 tick range for several hours, breaks a little bit below and then it's right back up there again...OTOH, when there is a "catalyst" (i.e. Fischer doing some verbal intervention post Yellen on Friday), it will cascade thru a series of levels with hardly a breather (almost binary)...

I'm also more a fan of channel lines rather than horizontal S/R...Oftentimes, you will find the market making marginal new highs and lows that penetrate the horizontal S/R, but are exact touches on a channel.
 
der_kommissar said:
I wouldn't argue against the lines drawn above...There are "typically" reactions at levels such as you've drawn above...The bigger issue is that when you have the VIX down in this 11-12 range, the reactions aren't significant enough to give you "breathing room" away from your entry...Look at that 2180 level...sits there within a 6-8 tick range for several hours, breaks a little bit below and then it's right back up there again...OTOH, when there is a "catalyst" (i.e. Fischer doing some verbal intervention post Yellen on Friday), it will cascade thru a series of levels with hardly a breather (almost binary)...

I'm also more a fan of channel lines rather than horizontal S/R...Oftentimes, you will find the market making marginal new highs and lows that penetrate the horizontal S/R, but are exact touches on a channel.
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A previous poster was correct in that it is unwise to just trade S&R levels purely on the level - one should look at a small few other things to gauge the "reaction".

News of course moves the markets. Algo traders move the market. Buy /Sell programmes move the market.

The thing is, if you are there when the market starts to move, you can then capitalize on TIME!

I came across a very good book lately, actually, it was 2 books (it really is amazing what you can find on the net if you spend a bit of time searching), and the author of 1 book said something so true..that went something like this..

most traders mistake skill for "being in the right place at the right time"

This guy knows what the markets are about.

J_S

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Support and resistance offers signals that require the least risk whereas when you use indicators, they require most risk cause it is once removed from pure price. Many will say they know how to understand chart patterns but can't use them by chart reading as they think using indicators are better, but unless you can trade without indicators you place under or above charts, you generally have forever problems or simple not make money as other would. I think if you don't study and practice for months/years in chart reading, you are doing a disservice. I still use indicators as an aid, but I already know how to chart. Price either holds the S/R or it breaks it, so risk is smaller, trend lines work great once you learn how to draw them, it took me many years how to draw them for my needs and no, it is one thing I don't hand out. This is all my opinions. I often use indicators cause chart patterns signals takes time to set up.
 
No matter what timeframe you use, you will always have S&R lines to work to. How you trade the lines, will be determined by your experience and your ability to act and react.

If you are in the "wish-hope-pray camp", then forget it!

If you are in "fuk you, you are not getting my money camp", then you have a very good chance of taking money from those who are stupid enough to throw it away:D

Why am I the only one posting charts - as I am sure more than me use them:rolleyes:

J_S

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Use excel to work out your averages and be prepared for what the price actually does when the market opens.

Automatically generated levels - as you can see the long levels were not far out, which is the reason why I use averages!

I have but one major decision to make - long or short - after that it is just a matter of managing the trade.

Experience is used to fine tune entries and exits using market internals - but overall the averages are what makes you the money.

Can you do it - sure you can, anyone can, but WILL you do it - that is the BIG question that only YOU can answer:)

J_S

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