[torero]

Prices either confirm one direction or another or neither. I trade on confirmation to reduce risk unless the S/R is a major one like on monthly or weekly charts. I let prices tell me when I should get in and get out, not S/R as my primary signal. Many times, I've left money on the table anticipating an S/R would stop prices, but end up breaking through and stay broken. Price first, S/R second is my rule of thumb. S/R are there but it's just another line unless prices react to it. But I do anticipate the targets by looking for S/R as possible exit points. This anticipatory guess is to calculate my RRR only.

For entries, I need confirmation to get in, like higher high/low or lower high/low. Without this, market may continue and my entry will be way off and no nearest support in sight to set my stop. If I don't have a stop, I don't take a trade. I need to let the market find me a support first before I can use it as a stop (talking about long entries here). True the entry and stop distance is far but the risk of anticipate is what many players do like "catch the falling knife" in smaller scales. I stopped doing that after finding out the bleeding from the cuts were too excessive.

One last thing, anticipating is also going against the momentum, this is something I cannot allow myself to get into. I can never anticipate where the downmove will stop. Even at S/R there is a tendency for prices to overshoot it then reverse so the stop is useless because it may get hit. Best thing is to wait for it to form and go with the momentum. Momentum is what get you into profit quickly and many times stay in profit.