Hello, there I'm opening this thread to discuss trading in recent S/R areas with only price action because I believe that keeping trading simple and clean without any indicators/scripts it's much more beneficial because the more confluence you have in your chart the more difficult is to take an entry hence one confluence could say to buy and the other confluence could say to sell.
I think if you know how to read candles(price action) you don't need any type of indicator.
The only thing I'm happy to use its recent Support and Resistance areas because they are just areas where price had any sort of issues in the recent past so what's the probability of when the price goes back to that S/R area it will reject or retrace a bit to reverse or to "breath" to go higher breaking that S/R area.
I also know that market moves in HH and HL(vice-versa) so technically you can spot the direction of the price in that timeframe.
My issues are that which support and resistance areas work and which don't because for example once resistance breaks that become support but a candle closes below that new support then does that mean that price is now changing direction? The HL it's not broken yet so technically it should still be a buy?
Happy to discuss to hear more opinions about it.
Luciferz
I think if you know how to read candles(price action) you don't need any type of indicator.
The only thing I'm happy to use its recent Support and Resistance areas because they are just areas where price had any sort of issues in the recent past so what's the probability of when the price goes back to that S/R area it will reject or retrace a bit to reverse or to "breath" to go higher breaking that S/R area.
I also know that market moves in HH and HL(vice-versa) so technically you can spot the direction of the price in that timeframe.
My issues are that which support and resistance areas work and which don't because for example once resistance breaks that become support but a candle closes below that new support then does that mean that price is now changing direction? The HL it's not broken yet so technically it should still be a buy?
Happy to discuss to hear more opinions about it.
Luciferz