I agree with the point that drawing the s/r lines can be a challenge. I believe the folks in the group do as you stated ant drawing them in advance such as the night before. Some S/R levels can be intraday levels as well. I like the concept of using floor pivots and the MP levels and I think that YH and YL are valid as well. One doesn't have to have every line on a chart. Actually, what I do in TS is have multiple workspaces. One workspace may be my Market profile workspace with
POC;s and
VAH and
VAL. I then have a seperate workspace for pivots. It's farly easy to switch tabs. If price starts to approach a level one can go to a lower time frame chart with no lines, or draw in one horizontal line where price is approaching and see how it starts to react. I use pivots and MP by Suri Dudella and his stuff can be broadcast to as many charts as you want. So if I have a daily chart as a source chart of pivots, for example, I can braodcast the pivots to any chart of any other timeframe. I don't have to draw anything. This is not a pitch for his stuff it just works for me.
David
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That is why it might make more sense to use static levels that are plotted before the day starts.
I have not read the book so I can't recommend it, but there is a book specifically about this type of method called "Price Action Trading".
Some levels to think about could be:
1. MP levels (POC, VAH,VAL)
2. Yesterday's High (YH)
3. Yesterday's Low (YL)
4. Day Before Yesterday's High (DBYH)
5. Day Before Yesterday's Low (DBYL)
6. Key numbers (aka Floor pivots)
7. Actual pivot levels-places where the market did react/retrace/stall. |
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