| The vast majority of traders I have encountered are searching for the right tool or strategy to help them identify the correct area and direction to ENTER a trade. The problem is that the market is an ongoing auction that is constantly trying to discover a price that everybody can agree on. Thus, any expectation of an exact repeat of what happened in the past is going to lead a trader into a completely random situation that will often result in their money being taken by the market regardless if they had the correct entry area or not.
Even if a trader is a master at finding the correct areas of support and resistance, the way that the price reacts to that area will be different in each individual situation. It is true that areas of support and resistance tend to hold upon an initial test. However, the manner in which the price respects the zone will be different each time. Read more...
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