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A common misunderstanding is that there is a 'one-size-fits-all' approach to support and resistance. S&R is present at different scales to diferent degrees, and there are traders trading at these different scales. If one cannot read the signals at these different scales, thats fine, stick to the 10-point or so fixed 'zones' of S & R, but for those more attuned to the dynamic nature of S&R, and who can trade dynamically, recogntion of the different scales within which the market trades is important. It is easy to get fixated on one scale and assume that is the only scale of relevance. It is a subtle distinction, though, not everyone gets it. |
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This common misunderstanding arises from an equally common misunderstanding as to the nature of support and resistance. There are "support" and "resistance" in every tiny swing on a tick chart, but one is not required to trade that just because he happens to use a tick chart to follow price action.
Yesterday, for example, support was at 1675. Resistance was at 1710. That's what the trader trades, regardless of what bar interval he's using to monitor price action, if he's using any bar interval at all.