Support and Resistance is the name of the game
Hi all, below is an article that I learned years ago and that has contributed massively to my trading success over the years and I would like to share with you. Due to the rules at tradingview, I cannot post the link so I will write it here.
When it comes to trading support and resistance is the name of the game and support and resistance comes right off the chart. Name any indicator you can imagine, any concept of data crunching you think of, they all use the Open, High, Low, or Close from whatever time frame they are analyzing. In short, they get their data from the chart.
Every indicator, algorithm, volume analysis, Market Profile, or Fib level, all seek to do the same thing, “FIND SUPPORT OR RESISTANCE”! Moving averages, traders try to use them for support and resistance. Bollinger bands, Keltner Channels, MA Envelopes, they use them to try to find support and resistance.
No matter what, all methods ultimately seek to find the support or resistance from which traders will enter, manage, and exit their trades.
Contrary to popular belief, indicators, if used correctly, DO NOT identify support or resistance. Indicators DO NOT time your trades. Indicators if used correctly are “TRADE FILTERS”. They merely give us permission to buy or sell support or resistance once WE have identified it, not a piece of software.
It does not matter what you put on the bottom of your chart if you don’t know how to read the top half of the chart you will not make it in this business. That is our focus and that is what we teach, how to correctly get a “READ” on the market by understanding how Market Structure works.
Key Points:
All trading is about support and resistance: Indicators DO NOT identify support or resistance or time your trades.
The majority of traders use indicators to find support or resistance, the majority of traders lose
Indicator do not identify support or resistance, they are merely trade filters
If you don’t know how to properly read the top half of the chart, then it does not matter what you put at the bottom of the chart.
Trading at its basic essence is about knowing with a high probability where buyers are most likely to come in so we can buy, or where sellers are most likely to come in so we can sell, with a level of confidence that the trade will produce some form of profits while we manage our trades to longer term targets.
If you don’t know how to spot support or resistance, how will you know when the market is testing it? If you don’t know where the market is most likely to go, how will you know when it gets there? How will you know where the best exit is in real time?
Therefore, every day when you check the market opening. Do not ask yourself if you could trade today. Ask yourself if you could find support and resistance today.
Remember, BUY AT SUPPORT & SELL AT RESISTANCE.
When it comes to trading support and resistance is the name of the game and support and resistance comes right off the chart. Name any indicator you can imagine, any concept of data crunching you think of, they all use the Open, High, Low, or Close from whatever time frame they are analyzing. In short, they get their data from the chart.
Every indicator, algorithm, volume analysis, Market Profile, or Fib level, all seek to do the same thing, “FIND SUPPORT OR RESISTANCE”! Moving averages, traders try to use them for support and resistance. Bollinger bands, Keltner Channels, MA Envelopes, they use them to try to find support and resistance.
No matter what, all methods ultimately seek to find the support or resistance from which traders will enter, manage, and exit their trades.
Contrary to popular belief, indicators, if used correctly, DO NOT identify support or resistance. Indicators DO NOT time your trades. Indicators if used correctly are “TRADE FILTERS”. They merely give us permission to buy or sell support or resistance once WE have identified it, not a piece of software.
It does not matter what you put on the bottom of your chart if you don’t know how to read the top half of the chart you will not make it in this business. That is our focus and that is what we teach, how to correctly get a “READ” on the market by understanding how Market Structure works.
Key Points:
All trading is about support and resistance: Indicators DO NOT identify support or resistance or time your trades.
The majority of traders use indicators to find support or resistance, the majority of traders lose
Indicator do not identify support or resistance, they are merely trade filters
If you don’t know how to properly read the top half of the chart, then it does not matter what you put at the bottom of the chart.
Trading at its basic essence is about knowing with a high probability where buyers are most likely to come in so we can buy, or where sellers are most likely to come in so we can sell, with a level of confidence that the trade will produce some form of profits while we manage our trades to longer term targets.
If you don’t know how to spot support or resistance, how will you know when the market is testing it? If you don’t know where the market is most likely to go, how will you know when it gets there? How will you know where the best exit is in real time?
Therefore, every day when you check the market opening. Do not ask yourself if you could trade today. Ask yourself if you could find support and resistance today.
Remember, BUY AT SUPPORT & SELL AT RESISTANCE.
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