Hi,
I posted this in another forum here but didn't get a reply, so here goes again
Coming from the Forex arena and having much success trading longer term time frames but not so much day trading I decided to expand my horizons and based off of a conversation I had with a daytrader friend of mine a while back I decided to take a look at the above.
I have been watching quietly on the sidelines for the past few weeks, just trying to get an idea as to how price reacts to levels and I am quite amazed to see that price really does respect support and resistance levels. At least to an extent.
So from what I have seen, assuming you get the correct price action at these levels, so being patient and waiting for the ideal setups, it seems you can have quite a good level of success trading bounces. This is a little new to me as I am a trend trader at heart, but from what I have seen, you will get a much better strike rate and find more consistency trading bounces.
Am I correct in my analysis or have I missed the point completely? Maybe the recent conditions are exceptional?
I am not saying I am not going to back test heavily, but I would be interested to get some experienced views in any case just to make sure I am not barking up the wrong tree.
My other question is... should I be using the price ladder and T&S to support my trade or is that overcomplicating it? Up until now I have literally been watching just the charts with absolutely nothing else.
I look forward to your thoughts and comments.
Kindest
Vince
I posted this in another forum here but didn't get a reply, so here goes again
Coming from the Forex arena and having much success trading longer term time frames but not so much day trading I decided to expand my horizons and based off of a conversation I had with a daytrader friend of mine a while back I decided to take a look at the above.
I have been watching quietly on the sidelines for the past few weeks, just trying to get an idea as to how price reacts to levels and I am quite amazed to see that price really does respect support and resistance levels. At least to an extent.
So from what I have seen, assuming you get the correct price action at these levels, so being patient and waiting for the ideal setups, it seems you can have quite a good level of success trading bounces. This is a little new to me as I am a trend trader at heart, but from what I have seen, you will get a much better strike rate and find more consistency trading bounces.
Am I correct in my analysis or have I missed the point completely? Maybe the recent conditions are exceptional?
I am not saying I am not going to back test heavily, but I would be interested to get some experienced views in any case just to make sure I am not barking up the wrong tree.
My other question is... should I be using the price ladder and T&S to support my trade or is that overcomplicating it? Up until now I have literally been watching just the charts with absolutely nothing else.
I look forward to your thoughts and comments.
Kindest
Vince