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You often speak about the importance of support/resistance and as mentionned in the article "they are the corner stone of any trading plan". Do you consider the identification of support and resistance a subjective process ?
Subjective mainly in relation to the time frame. I think that ten traders all looking at the identical chart should come up with very near the same support/resistance levels.
But the problem is when you change time frames, and then of course when you realize that some traders are looking to scalp 4 ticks, and some traders are looking to hold for 40 points.
Also some traders define support and resistance primarily in terms of horizontal lines at highs and lows. Other traders use channels and trend lines and call the top/bottom of those support and resistance. Others still may use market profile like value area's and point of control to define support or resistance.
All I know of Sam Seiden's odds enhancer calculator is what I've read in discussions here. However it is on my long term list of things to check out. I like your rules for going long at support - it seems you have conquered your dislike of reversals
From looking at 100 days of EUR.USD, I would say that 50% of the time, the price stalls after the BOF setup. In fact it happens so often sometimes I got confused whether you are meant to wait for the stall or not. Just to underline my lack of experience though, I have no recollection of whether the stall confirms the setup, fails it, or has no impact!
Obviously though the best stall is one that happens just like the examples in YTC PAT......
Actually I think the stall just provides a platform for an entry trigger, e.g. up/down twin bars, or a chance to get in if you're convinced about the bias.
Now I'm looking at real-time data, I have to decide what hours I'm going to trade. I guess I'll just trade the most convenient hours that fit in with the rest of my day, but that seems like a non-decision. Do you have a preference?
You can discover what your enemy fears most by observing the means he uses to frighten you.
I think the best price action is roughly
09.00-11.00
14.30-17.30
[GMT +01.00]
So if nothing exciting happens the market will mostly be dull between 11.30-14.00
Mostly at 12.00-13.30 I do mountainbiking or jogging for physical excercise and fresh air (non-informational side-information)
btw terratec @ the 6E thread also said roughly the same, you should take a look, but you probably have done it already
Sorry I have no idea what you mean ( not at that level yet ) but I'm just investigating priceaction in neighbourhood of recent price-swings/areas where price moved really fast from in conjunction with higher tf trend & market structure
The process I use at present to identify support and resistance is not subjective - I could program it into a mechanical trading system. I just use lines.
However often the lines come thick and fast and I realised recently that the areas or zones of S/R that people discuss are probably more realistic, and I think identifying such zones would require more skill and be less objective.
You can discover what your enemy fears most by observing the means he uses to frighten you.
Thanks for using GMT+1 - you actually confused me more since I thought you were in GMT+2 zone
I was surprised that @terratec hadn't mentioned 06:00 - 09:00 but then neither did you. From my limited experience it always seems that there is something going on there, whether it's a Asian session break-out or morning reversal or whatever.
EDIT: hold on I just re-read terratec's post. He was talking in CET timezone. So he recommends GMT+1 07:00 to 08:00 but while that's partly what I like, I would prefer to catch all the action from GMT+1 06:00 although I admit there are days when nothing happens in that first hour. Plus it would be challenging to see whether my brain would function for trading at that time.
I am realistically not going to be able to trade that time slot though due to little people running around the house at that time creating carnage. The other normal European day is also not ideal since I would rather have one long session than two shorter with a big break. We'll see.
You can discover what your enemy fears most by observing the means he uses to frighten you.