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Originally Posted by Trader Raider
Support resistance (as how it is typically defined) only comes into play in the larger timeframes. One would want to know before entering a trade that there is no significant obstacle in the way to counter the momentum of the market. On the other side of the trade one would also want to identify a logical place to exit as the action gravitates towards the target area before momentum dries up (or take some money out if it looks like a minor one only could be taken out say off the back of a major news announcement for example).
Having said that support resistance in the larger timeframes is also a good opportunity to anticipate/predict a trade off too. But this is no different to trading off a break against the longer term trend or congestion breakout back in line with the trend. But I view this as a setup only any break / reaction still needs to be confirmed entry timed within the smaller timeframes. How many times do we see cle wicks poking out of a range that amount to nothing more than the market trying to make a move hestitating then falling back into line.
As for clestick patterns I don't get too caught up with the detail other than to be able to cleanly draw diagonals horizontals which either touch the wicks or bodies of multiple cles to "validate" the existence of a trendline support or resistance. Whether one uses fibs moving averages round number supports bollingers etc. if one can't draw neat lines then it probably doesn't exist exists only in one's imagination or the market is too erratic to enter anyway. I also like to point out that if neat lines cannot be drawn up it's not to say that nothing is there. It is just saying that the market (money flow) is not focused on that timeframe right now by zooming out drawing of neat lines are likely to be found on a larger timeframe. Now whether that timeframe is suitable to one's trading methodology psychological profile etc. that is another story. But in summary I believe it is very risky to enter a trade based on assumptions that one is not entirely confident with or that cannot be validated to some degree.
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Just quit talking about this that just present your trading plan so we can all see what you are about.
One thing is true in forex if you are not carefull you will be eaten alive over over again.
"Many are called but few are chosen"