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RE: What does Support and Resistance really tell you?

in #trading7 years ago

You should draw your base line on the chart so I can see what you were thinking.. If your base line was at .00025 then you could have expected a bounce back to that level , and it did give you that bounce,... but I wouldnt have taken that trade in the first place, even tho it did work, I dont like the risk reward, there isnt enough profit potential percentwise to justify getting in.. your dialed in too small on the chart, and I dont see a real base on a one hour bar chart, for you to make that trade, and see a base, you would need to be working off a 15min chart, and I dont think its worth it..

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Thanks for the reply ;) In this case what would be the minimum profit potential for we to enter in a trade 10%? with at least a 10% bounce reaction forming the previous base?

yeah, 10% sounds pretty good for a minimum.. sometimes less trades make more money, by waiting for a good trade and not getting involved in low quality setups