Regarding S/R...that is why all of my trades are based on Market Profile. I know that if we are outside of value and come in to test
VAH for example, if we dip into value by 7 ticks or so, there's a higher probability of price moving lower to another value pivot (be it
VAL or
POC) than price quickly reversing and coming my way. This keeps my stops tight with a higher % of wins (62% so far in 2007) and lets me keep a risk/reward of average $.80:$2.00.