It seems to make me more vague, less specfic and trade levels that aren’t there
It is generally said that support and resistance levels are zones rather than specific levels – the folks at Edgewonk and Chris Capre subscribe to this view. But having tried to trade with zones rather than levels, I think I will have more success by sticking to the latter.
According to the DaxMasters – and Graham Levine in particular – the Dax is traded by algos and they are programmed to trade at specific levels and these levels (pivots, fibs, TLs etc.) are reasonably predictable. Therefore by trading levels rather than zones, my trading is coherent with the algos, which is the aim of my system.
TRADE PLAN: to overcome any inflexibility caused by using levels instead of zones:
– my system allows for at least two entries at strong, strong levels
– when setting my levels, I can be very conscious of nearby levels which might take out my 10pt stop –
