¿How to properly spot S/R?

Hmmm. Very interesting. This is what I found
november.png
 
_eug_ said:
If you can figure out why we topped on Jan 8th, you will also figure out why this temporary support came in here. I am literally spoon feeding you right now.
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Thanks for the guidance, I found a congestion + breakout +test setup on April 2019. The market topped in January just below the bottom of that congestion and today we stopped at the level where price confirmed the test of the breakout in nov-dec.

upload_2020-1-22_12-7-49.png
 
When price falls through a level (gray levels on chart) the best action is to place a short at the level if fell from - taking a long to resist/supply/sell orders is a huge risk.
https://imgur.com/a/I6Lo4e0
I hope this helps and not muddy the water further
 
Erin said:
When price falls through a level (gray levels on chart) the best action is to place a short at the level if fell from - taking a long to resist/supply/sell orders is a huge risk.
https://imgur.com/a/I6Lo4e0
I hope this helps and not muddy the water further
More...

Thanks, what I understand from this is that potential resistance is defined at a level where supply showed itself in the past i.e a Lower High that developed into a trend. So when prices return to that area one gets ready to go short again. Is that what you were trying to communicate or I got it wrong?
 
Just remember the higher time frame levels = more significance and bigger reaction. The tricky part is figuring out how far the reaction will go and where to take profits.

Your short is a scalp against the bigger test which is going on here. Today is a test of Monday's lows.
 
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