DislikedHey WDays, What is the signal to put the trigger on Support / Ressistance area ?Ignored
You have two ways you can go about it. Either you are aggressive and buy at support/sell at resistance, or you play it safe and wait for a bounce+retrace back.
There are a few things to note, however. Price will rotate between three cycles: range - expansion - consolidation. I like to think of the first phase as the "accumulation" phase; during the accumulation phase, buyers or sellers will set up their positions and they'll do it slowly, without causing much noise. Once they're all set, there is a sudden volatility injection in the market and price moves from A to B. Once it reaches its point of destination, it will proceed to go sideways and consolidate, perhaps retrace a little before that.
In terms of timing, we need to wait for the market to settle down. Entering while the market is in an accumulation process is simple and can be done by using a fib (could enter at the middle of the range), we could use a smaller timeframe area of supply or demand or we could wait for a fakeout and enter in the other direction.
I will elaborate further as we come accross these examples in the upcoming trade week.
I hope my crappy Paint diagram is clear enough.
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