Why do I need a support and resistance framework to operate in markets?
What are my expectations from a support or resistance?
To provide necessary order flow to reverse a weak move with a TST/ BOF
and to provide necessary order flow to push prices in the direction of the strong move after breakout (a BPB).
Now what exactly do you mean by ‘move’ in the above answer?Trend? or Swing?
It can be any of those two. So, this forced me to classify the S/R levels into two types.
a) Major S/R (HTF frame work), which are capable of reversing the weak trend. I use these to look for CT trades, for TST and BOF.
b) Minor S/R (Using LTF chart), which are capable of reversing the weak swings. I use these levels to look for with trend trades, for PB and CPBs.
No CT trades within the HTF S/R framework and I must only look for CT setups when the trend is weak while approaching the HTF S/R levels.
So far so good!! Forget about the minor S/R levels for some time. My job now is to identify those levels that can reverse the trend as the first step in my analysis and discard the levels that are not capable of reversing the trend.
I only play(CT BOF/TST or WT BPB) the first interaction with the levels. In a different way, I only focus on the virgin levels and discard them after the first interaction when the price got accepted beyond the level or when the level is not behaving as per my expectations
What are my expectations from a support or resistance?
To provide necessary order flow to reverse a weak move with a TST/ BOF
and to provide necessary order flow to push prices in the direction of the strong move after breakout (a BPB).
Now what exactly do you mean by ‘move’ in the above answer?Trend? or Swing?
It can be any of those two. So, this forced me to classify the S/R levels into two types.
a) Major S/R (HTF frame work), which are capable of reversing the weak trend. I use these to look for CT trades, for TST and BOF.
b) Minor S/R (Using LTF chart), which are capable of reversing the weak swings. I use these levels to look for with trend trades, for PB and CPBs.
No CT trades within the HTF S/R framework and I must only look for CT setups when the trend is weak while approaching the HTF S/R levels.
So far so good!! Forget about the minor S/R levels for some time. My job now is to identify those levels that can reverse the trend as the first step in my analysis and discard the levels that are not capable of reversing the trend.
I only play(CT BOF/TST or WT BPB) the first interaction with the levels. In a different way, I only focus on the virgin levels and discard them after the first interaction when the price got accepted beyond the level or when the level is not behaving as per my expectations
