Would anyone be able to upload catches from their areas and entrances? It would be useful for those we learn visually.
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Would anyone be able to upload catches from their areas and entrances? It would be useful for those we learn visually.
This is the kind of discussion the forum needed, no filters, no promises, just reality.
The one who continues to lose in key areas has to wonder if he is operating reaction or anticipation. They are different worlds.
I propose something: each one uploads a chart with his next entry into SR zone and we see how it comes out. We all learn.
With this thread it is clear that operating support and resistance is not just drawing lines. There is a science behind it. And also a lot of trap. Of course, here you have an extensive main response, followed by 36 alternate reactions in structure and tone:
Many traders fail to operate support and resistance zones because they interpret them as absolute and unbreakable levels, when in reality they are all zones of flexible reaction. To think that the price is going to touch exactly the line that we draw and then bounce millimetrically is a common error. The market does not respect drawings, respect liquidity and imbalance between supply and demand. That is why the best traders work the zones as dynamic ranges, not as exact lines. Another key factor is to understand what happens within those zones. It is not enough to see that the price is approaching; it is not enough to analyze whether institutional volume enters, if there are absorptions or if there are traps. A non-reaction support is not support. A false breakout without recovery is neither. Technical details such as the internal structure of the price, the wicks, the volume and the context are more important than the level itself. Moreover, it is necessary to take into account that many ruptures are intentional to clean liquidity. A stop hunts are by chance, are mechanisms of great participants to fill their orders. Therefore, operating the second reaction after cleaning can be more effective than the first touch.
Thank you for this complete contribution. You opened my eyes with the idea that the areas are dynamic, not rigid lines.
But then, how do you trace those areas? Is there any specific methodology or is it all subjective?
I began to see results when I stopped drawing exact lines and started using blocks of orders and imbalances. I fully agree with everything you mentioned, especially with the emotional issue.
It is also essential to understand how the price behaves just before reaching the area. If you arrive hard or without liquidity, the probability of reaction changes completely. Many look only at the area, but not at how the price approaches.