One of the main problems is that traders use support/resistance levels or zones as price reversal areas or areas where a price reversal is most likely to occur. Another problem is that traders think support/resistance levels or zones are trade signals themselves.
Therefore, the most efficient way to use s/r levels or zones is to use them independent of a trade signal. Simply, if you get a pattern signal not occurring at a s/r level of zone...it's not valid for trading although it may be a valid pattern signal.
Another problem is that s/r levels or zones are very dynamic via the fact they represent changes in supply/demand. That in itself implies they can behave as reversal areas and continuation areas. For example, if there's more demand than supply (rising prices) and suddenly more demand show up...the volatility spike is still a change in supply/demand dynamics via producing a strong continuation price action. Therefore, if you're have trade problems at s/r levels or zones...it could be due to the following:
* The identification of s/r areas you're using do not represent key changes in supply/demand.
* Failure to realize that s/r areas do not represent reversal areas. They represent changes in volatility and that in itself can allow them to also behave as continuation price areas.
* The pattern signal you're using to signal trades at s/r areas is poorly designed via lacking something involving supply/demand and volatility changes.
WRB Analysis can help with the above to improve your trade strategies via either the entry signal or profit targets...hopefully both. Therefore, you now have access to the WRB Analysis Tutorial Chapters 1 - 3 v2.1 (study guide) within your private thread
and I look forward to helping you integrate WRB Analysis into your trade method to improve the performance of your trade method. Note:Only you have access to your private thread. Thus, no other forum member can see it nor access it. Therefore, we can have a private conversation in improving your trade strategy but that's only possible if you continue asking questions and posting charts in your private thread. Simply, the support is critical in integrating WRB Analysis into your trade methodology.
Trader and Founder of WRB Analysis
(wide range body analysis)
@ http://twitter.com/wrbtrader and http://stocktwits.com/wrbtrader http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
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Basically I am looking to improve my trading style using the WRB analysis, My trading is simply using weekly resistance and support and look for the trend reversals. However the difficulty I am having is that often times the resistance and supports don't tend to hold and I am stuck with a losing trade. I mostly trade the TF and ES on the 5 min charts. I hope WRB analysis can help me with correctly identifying the levels for trading.