Please tell me if I am wrong. Once you spot a strong move in either direction, you look for the last trend that formed before that strong move and define the pivot for Support or Resistance. Then wait for prices to move back to that level and take the trade once a setup develops at that level.
¿How to properly spot S/R?
- Thread starter PAAddict
- Start date
E
Erin
Ill use NQ - when price failed to hold above the last swing higher low and fell below the buy orders it created a situation where we knew there was more sell orders at that level then buy orders
E
Erin
You were correct to buy the pullback this morning - this may explain why price stopped lower then you expected - price can never rise past the nearest pullback - it has to deal with the orders in that pocket
Thanks! I will look into it.
It looks like today we don't have any reference point to define Resistance.
E
Erin
but we do for support - the obvious is the breakout
E
Erin
E
Erin
Oil is looking interesting
Obviously, the high of the day is resistance and the low of the day is support. However, that does not mean either will hold when price comes back to that level.
However, in say an uptrend, supports are more likely to hold than resistance levels.
If you see sideways price action and/or HH, HL, followed by LL and LH where price is not trending, again don't expect and S or R to hold and you may not want to trade. Instead wait to later or another day.
However, in say an uptrend, supports are more likely to hold than resistance levels.
If you see sideways price action and/or HH, HL, followed by LL and LH where price is not trending, again don't expect and S or R to hold and you may not want to trade. Instead wait to later or another day.
I am still puzzled by your method. I have drawn a couple of places (Yellow rectangles) where I don't understand why you don't see those as levels of interest.