As you can see "Magical" SR levels work every time. Support/Resistance (SR) Levels and Zones are very important for all traders. Basically, you can expect that on specific levels price will stop remain for some time or bounce off. This help up define Risk to Reward Ratio. I know few methods how to mark SR. But I have found that this method is the best to define SR levels. We can mark round numbers 1.5000, 1.0800, 50.00 – and those are psychological levels - our subconscious is telling us we should paid very high attention to them. W. D. Gann never mention to us Fibonacci numbers but he is talking about 1/4, 1/8th and 1/2 (which is not Fibonacci value but every one is using). Those levels are not only SR but also helping our brain to quickly define size of the moves and how far price will go or trace back. Those are example values 1.5250, 1.0875, 0.7500, 0.975 and so on. I hope you now you will see those levels with more confident and they work each time. Take a look at levels 1300.00, momentum become weak and price just shy away from it. look at 1200.00 where third swing from the right stops on it. And what we have now? Price just stop on one more "MAGICAL" level 1225.00 I hope you can see what I see...
So it is more like Gann ratios 1/1, 1/2, 1/4, 1/8, 1/16
jimmycdn
⋅
@pmcllc, hi yes that is correct, but I will never go to 1/16 due to the fact that my analysis are done on 1 hour chart. same goes for retracement ( i use 0, 25, 50, 75, 100 levels)
jimmycdn
⋅
I forgot to mention Importance of RSI. Take a look on Blue line on 20 levels - this is very strong support and price level of 1225.00 will act as a Support price should remain in uptrend...
cheers,
Jim
jimmycdn
⋅
I hope you like it different point of view and my perception of the market. Just like Bill Williams mention "Every Trader trades own believes not the market"...