I have been a pure supply and demand trader, having great results for the past few months. It's going well but that I have bad days that may cost me the previous 2-3 weeks of profit. I could blame it on poor risk management or feelings, but I need to blame it on my winrate this moment. Consistency and my profits speak for itself, although I've never calculated .
I gave it a thought on how best to remove these terrible days and to boost my win rate and this is by incorporating support and resistance on top of my own SD zones. I was never a huge fan of these, but following backtesting and forward testing, I can tell that I hit more winning transactions by incorporating this extra confluence element.
But and I must admit, I never really understood when a supply demand and support/resistance line/zone will hold or not. It felt like gambling for me so with this mindset, I chose to have a cash management, to choose a thus far it has been demoned to be great.
BUT, I would like to genuinely know (because this is what I'm basically trading) if there are indiions or not when any of those zones will hold.
Quick summary of my egy:
1.) Identify provide demand area on the current timeframe and one time frame greater
2.) Identify support/resistance about the timeframe you exchange (I use any random SR indior to draw it for me, but does anybody know a very good one? No matter free or paid)
3.) I seldom take first touch transactions and await a indiion of reversal the moment price reaches these regions
These are my criteria to stack the odds to my favor but I am dealing with the following issues:
1.) My take profit is but only because I do not know where else to take my profits. I thought about the huge problem area but price doesn't even reach some of the SD or SR areas and turns. Any info on this?
2.) I don't understand when a zone will hold. I think that no 1 call tell whether it will hold 100 percent or not, but what might be some indiions for this? Because this is my main dilemma
3.) I thought about waiting for the M1 trend to alter and then exchange in the direction of the trend, but price bounces and just never comes back and it sucks not buying low, selling high and missing heaps of pips.
It might be tough to answer these questions and in the end, I'll have to backtest and forward test a lot to find my own answer but if someone is out there that transactions SD and SR as the primary egy and found good success with it, I would really like to consult with you (no matter if from the forum or through direct message).
Thank you for anybody helping out!