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Originally Posted by yaed A thought on this: People often try to identify where S/R is and place their orders there as if they are betting price will or will not pass the S/R. Thats almost a 50/50 game of chance. I dont think thats how S/R should be thought of. Rather i think it could be smarter to enter once you are certain price has past that S/R area or been rejected by it, like skfx showed in one of his charts, this one: |
It's easy after the fact to see which way to have traded a S/R. That was a 4hour chart and the move before the fake break was a successful bounce. Then if one had traded the breakout, they'd have lost. How many pips past S/R did it go, 50? Where is the point that we know if it's going to be a bounce or breakout? It's so subjective. No-Brainer Trades is a great thread for S/R trading.