Hi Rick, I always trade Sup. Res. It starts off as Supply & Demand. What I look for is
a Bullish candle with a higher high than the next big Bear candle. They can be a couple
of candles apart. I don't trade the big move down but hope for a quick return to the zone
marked in blue where I wait for a possible short entry. If it plays out I take the trade and
that area now becomes a Res. zone. Ditto for the bottom, which becomes Sup.
I trade the range for as long as possible , if there is a break above or below I then wait
for a retest of the breakout point for possible trades. They sometimes don't come back
so I look for another zone further down or up, whatever the case may be. It could also be on
the 1H chart. I make up my initial zones on Sundays on Daily 4H & 1H charts. so there
are plenty of trades to be found. Because I only trade Asia I like to get an entry between 7am
and 5 - 7 pm. If the charts show an entry set-up happened overnight I will enter on opening
candle, if the overnight move isn't too big. Didn't like the big gap down on EURCAD this
morning so will watch it for a while. Like you say could be short, could be long, if it breaks
above Res. Using a TDI indicator now to replace the RSI and AO. does the same job and
is better with divergence. I can't remember the name of the website where I downloaded
from, but the guy was using it trading pivot levels and after using it for a few months it
works well.
EC 1H & 4H chart
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