Playing bounces off support and resistance

[Phoenix01]

Hi, What do people use to help them confirm if price is bouncing off a major support or resistance level? The only thing that has worked for me so far is candlesticks and reconizing rejection candles and patterns. Sometimes its perfect and sometimes it just blows straight through after the stopping candle.

Omar

 

[wackypete2]

Hi, What do people use to help them confirm if price is bouncing off a major support or resistance level? The only thing that has worked for me so far is candlesticks and reconizing rejection candles and patterns. Sometimes its perfect and sometimes it just blows straight through after the stopping candle.

Omar

First, make sure you have a valid support or resistance level, pivot point, or otherwise. Try waiting for a candle to close THROUGH the s/r level and the next candle reverse direction and closes back over the level. Buy/sell on the breach of the high/low of the 2nd candle.

Nothing is perfect. No set-up, candle, ma, ta, fundies, or anything else will work all the time. It is up to YOU to manage your money and your trade.

Good Luck!!

Peter

 

[DionysusToast]

I take it you are day trading as this is in day trading forum. Can you confirm that ?

Also - what market are you trading?

 

[Phoenix01]

Yes i am day trading, the FTSE 100 and sometimes crude oil.

 

[DionysusToast]

In terms of answers you are willing to accept.

Are you of the opinion that all you need to know is on the chart and that nothing outside of that can help you ?

http://www.tradersaudio.com/faq/10.mp3

 

[Phoenix01]

I think the majority can be determined from the chart. However i do use economic data coming out that day and week, to help determine the trend. Why?

 

[DionysusToast]

Many people limit the information they are willing to use in short term trading futures contracts.

As such, there's little point discussing things that fall outside of that domain as they have already decided not to use them, or rather, they have already decided what they should use, despite the fact they are net losers.

Click the link, listen to the MP3, ask yourself if you'd see any of that on a chart.

 

[MrGecko]

2b / 1-2-3

 

[Chartsy]

First, make sure you have a valid support or resistance level, pivot point, or otherwise. Try waiting for a candle to close THROUGH the s/r level and the next candle reverse direction and closes back over the level. Buy/sell on the breach of the high/low of the 2nd candle.

Nothing is perfect. No set-up, candle, ma, ta, fundies, or anything else will work all the time. It is up to YOU to manage your money and your trade.

Good Luck!!

Peter

thats a good way to play it