The more time prices touch and bounce back from support and resistance, does this mean the support and resistance are strong? Or does the more times price touches them make them weaker and more likely to break?
@Santos
Understood, thank you!
Statistics say that the more times price comes near a certain point, the more likely it is to break that point.
Buuut…
Depends on what you want to do with that data. If you’re looking for breakthrough trades… test it.
If you’re looking for bounces… again, test it.
Use proper risk management, journal your results and analyze later.
thank you!It’s honestly 50/50. Don’t overthink it.
Sometimes yes, sometimes no. Many variables. You have to be able to read the markets and know if the buyers or sellers have more momentum. Timeframe will also matter. On the 1m, I’d obviously want to see more bounces compared to the 15m. I’m always looking back through days, weeks, months, then I’m seeing which supply and demand levels are most prominent and really only focusing on those levels. In my opinion, the more the price hovers or consolidates around a support/resistance level, the more likely it is to break.