Welcome to another week of tips. Today I am going to show you something I had personally noticed in the markets through testing and just my experience throughout. It is to do with buying at support and selling at resistance but what makes an opportunity slightly better or worse than the other.
You may or may have noticed that sometimes you buy at support without actually having any reason aside from the fact that price is at support. Now I am not talking about additional confluence with RSI or fibs etc but do you actually think price will hold. Do you happen to forget that your initial prediction might be that price will carry on lower rather than holding.
Here is a quick video explenation of the charts and something for you to think about when you are trading or testing things yourself.
Hope that made sense. I would probably emphasise this on the daily more than the lower time frames but the principle applies. I would say daily we tend to do it more for the simple reason that it typically takes a while to play out so we might forget what we initially thought. That’s it for this week’s tips, hopefully you found some value in it and improves your trading.