¿How to properly spot S/R?

Handle123 said:
Strength of the S/R, meaning more bars to left and right that have lower highs in case of Resistance, more passage of time of not violating this high makes this R price harder to violate. They are only magic numbers by those who profit by them, but until you have a close beyond them by more than few ticks and beyond, former pivot highs might be an area of running protective stops as many will have their stops just beyond these areas.

Support can be same as Resistance but also can be far different since markets often go into congestion near lows. Tops can decline in decreasing non volatile manner, but often the faster a market rises tends to become a quick ride down.

The lesser S/R areas are usually for entries within a wave of same trend, even chop has trend if your trend identifier is different than moving averages or HH/HL

Just remember, some traders look at the trees instead of the forest and vis versa, neither are wrong or correct, depends on one's trading plan.

http://thepatternsite.com/index.html

Much luck to you.
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Thank you very much for your reply. Any material I can explore regarding your view on S/R?
 
NQurious said:
What is wrong with that plan? .
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First of all, thanks for your comments.

The thing is I get into a trend,

Lets say a take a short in what then turns into a downtrend, so far 3 things need to happen for my plan to activate a total close of my trade. The last of them being, crossing a specific level, that in order not to complicate this I will call 50% of the trend I am trading. And after crossing that level I need to see a HL in order to close that short.

But sometimes I see that a Sellin Climax occurs and I do nothing, because I am not sure if it is a Climax or a Breakout, and my interpretation is that I am not sure because I dont get the concept of S/R right. What I need to include in my analisis is how to spot those S/R levels that are actually meaningfull in order to take action and change my trade from short to long, instead of waiting like a deer in the highway for price to return to the 50% of my trade.
 
SimpleMeLike said:
PAAddict,

You ask a very good question.

In my opinion, you define support and resistance based off of what you clearly see on the chart.

Here is a chart.

So how do you draw support and resistance lines. See below how I do it. Anything that looks like a support or resistance line, I draw.

Question: How do I know if the line I draw is relevant???

Answer: I worry about that when price get to the line I draw. All i can do is wait and see.




View attachment 203339

View attachment 203342
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Thanks for your reply
 
PAAddict said:
I would appreciate if you don't hijack the thread. If you don't think S/R works, then is of no use to contribute besides saying that in your opinion it doesn't work.
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%%
I like to measure many S+R levels;
then find a moving average i like, long story short..................................................................................
 
humbletrader2016 said:
How do you define S/R?

It can be a trendline, a horizontal line or lines to form a pattern such as triangles, wedges, head & shoulders, W/M and etc... It can be MAs to help you recognizing a big bullish or bearish picture. It can be a Fib tool to measure retracement and etc...

How to use S/R?

Some traders use S/R from large time frames to determine a temporarily bottom or top, from medium time frames to determine intraday trend reversal and from smaller time frames for entry/exit points. Besides, S/R can be used to recognize market trading sideway so you don't often get trapped in.

How to use it properly is up to every profitable trader because it's not the same for everybody. That's one way to find your trading edge. Have you ever been to a trading room with professional traders before? I did and were among more than 50 of them years ago. You'll find none of them displaying the same thing on their screens.

It does not matter how many textbooks that you read (I probably read over 50 of them while standing in a corner of Indigo or Chapter bookstore many years back), you will find none of S/R materials from textbooks giving you any edge to make consistent profits.

The bottom line is you are the only to discover the proper ways to use S/R by yourself to suite your trading style.

------------------------------------------

This is the first time I write a lot in a post on ET. Congrat to myself...... blah blah blah.... Yeah, I'm bored here. I'm sitting in a hotel room waiting for sunset so we could go out for dinner. This trip is so far fck boring me. The only good mood I've is to milk out from ES market for +5 points so far this morning.
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Thanks for the input.
 
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