Often I receive questions regarding how I determine important price points for establishing trades. It is a combination of several factors each time but by far the heaviest weight is given to recent support and resistance levels. You would be surprised at how often after I make a trade I'll receive a comment like "you shorted at the 66.3% fib retracement" or "you got in at the 20 period exponential" something or other. Nope! Or at least that is not how I found my level. It just so happens that important S/R levels seem to match up quite often with many of the more commonly or uncommonly used technically derived levels.
Here is Read more [...]
Often I receive questions regarding how I determine important price points for establishing trades. It is a combination of several factors each time but by far the heaviest weight is given to recent support and resistance levels. You would be surprised at how often after I make a trade I'll receive a comment like "you shorted at the 66.3% fib retracement" or "you got in at the 20 period exponential" something or other. Nope! Or at least that is not how I found my level. It just so happens that important S/R levels seem to match up quite often with many of the more commonly or uncommonly used technically derived levels.
Here is Read more [...]