¿How to properly spot S/R?
- Thread starter PAAddict
- Start date
E
Erin
Price pulls back against trend then crosses below the initial leg up - we had buyers supporting price but not enough and price falls below leaving sellers at that level. The first level of sellers in that pocket needs to be taken out first before price can reach the next level.
E
Erin
Price plays from pocket to pocket - the target becomes the first level it encounters - when those buy orders are used up it will to the next level below
E
Erin
price fell from the sell orders into buys and they held - now going into euro session the question is the untested level below and the next sell orders above - price continues in the direction of the swings which is up
Ok, I have been reading what Erin and Eug have been posting, and Here is what I understand so far. I am kinda slow for this so please bear with me.
The thing to look for regarding the potential levels of Support and Resistance are the price pockets that formed either in or against the trend las time price crossed through those levels.
So in any given trend,I need to go back to the last trend that crossed through those levels and identify such price pockets where supply overcame demand and vice-versa.
I ran with that logic this morning and here is what I had pre-market.
I had an uptrend that reversed and I got to the price pocket where demand overcame supply on the 13th. Here a HL formed in the hourly and the last two waves before the open indicated an uptrend. So far so good.
With that in mind, I took the first long I could get out of a retracement at 9587.25
At the time of this post, seems like supply showed up at the top of the area that provided support last week. Let's see what happens next.
If you think I am missing something obvious please let me know.
The thing to look for regarding the potential levels of Support and Resistance are the price pockets that formed either in or against the trend las time price crossed through those levels.
So in any given trend,I need to go back to the last trend that crossed through those levels and identify such price pockets where supply overcame demand and vice-versa.
I ran with that logic this morning and here is what I had pre-market.
I had an uptrend that reversed and I got to the price pocket where demand overcame supply on the 13th. Here a HL formed in the hourly and the last two waves before the open indicated an uptrend. So far so good.
With that in mind, I took the first long I could get out of a retracement at 9587.25
At the time of this post, seems like supply showed up at the top of the area that provided support last week. Let's see what happens next.
If you think I am missing something obvious please let me know.
E
Erin
Hi PAAddict, lets say we can see the pockets and we know if they are bearish or bullish then the next question to answer is do I trade the level - how do I know I am correct - this is basic entry of trade using closing value
I will see this tomorrow, I have never used closing prices in intervals smaller than daily because I did not consider those relevant. But every piece of knowledge is valuable. Thanks.