Broke very strong resistance area, could continue highere.
Stuff to remember:
— First look for significant move, then follow it to its origins where you might find a suitable level to evaluate further
— Make sure the initial move is significant on the same timeframe as the one you use for viewing your candidate level most clearly
— Check the distance that price traveled before the trend ended, longer distances mean larger initial imbalances and improved probabilities in the future
— The strong initial move can contain a few small retracements but not so many that make this move slow and weak
— Avoid opposing levels on the same and immediately higher timeframes, prefer to have a clear road ahead for your trade to run
— Make sure your level is placed correctly (low for Demand, high for Supply) in relation to the big picture's important tops and bottoms
— Trading the first return of price to a valid "fresh" level carries the highest probabilities due to the larger imbalance
— A valid level is considered "fresh" if price has not returned to it since its creation. It has nothing to do with how old the level is
Thank you for this sir!! I have learnt a lot from watching you place support and resistance lines. It is essential to understand these basics before moving on to learning other indicators. Thank you! :D
Do you have any indicators you recommend for traders?
tradewonk
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@jodijak, No i don't use anything, only what you see
lapoochi
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@tradewonk, interesting you don't use any indicators at all? I'll admit I was trading better when I was using strictly resistance/support lines... I've been studying charting and TA for over a month and I think I've become paralyzed by over analyzing and have a hard time even entering a trade now if all my indicators aren't telling me to buy. I do think I'll come around soon and be able to couple technical analysis with resistance/support lines and levels but I do believe one could trade very successfully keeping it simple like yourself and just trading "what you see".
tradewonk
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@lapoochi, If you know what to look for, then you don't need a indicator to tell you that