Using the weekly and daily timeframe to glean market structure in conjunction with the value area points of control. It can clearly be seen the areas of strong support and resistance. I am prepared for longs and shorts should price break out of the respective S/R.
I have opted not to trade in the 'price mess' zone, to avoid an unnecessarily long holding period. We seek low to no drawdown trades that lead to quick profits. NO FOMO!
I have opted not to trade in the 'price mess' zone, to avoid an unnecessarily long holding period. We seek low to no drawdown trades that lead to quick profits. NO FOMO!
Comment:
It makes a lot of sense to wait for the market to confirm the strong resistance area is now support. Yes, it broke out and headed straight up but in the future, trade after trade after trade that type of break out won't occur. In the long run, it is better to wait for the market to confirm that an S/R level has changed its role. By doing so, we can enjoy low-stress trades with low drawdown.