I miss my Grandmother Leslie.
She was a wonderful human being who tested, checked and rechecked everything to make sure it was impossible for her grandchildren to hurt themselves.
Little rubber corners on tables, small gates to stop sleepwalking, testing locks and anything that was attached to anything else.
Nowadays we give it fancy labels like OCD, etc.
But in her generation that was how things were done.
Markets also check and test and retest everything
I noticed in many of Al’s sessions that he would wait to place a trade because Support and/or Resistance (S/R) hadn’t been tested.
“I’m not willing to buy here because the support hasn’t been tested.”
”I’m willing to sell, but the resistance hasn’t been tested, so I don’t want to have to keep scaling into a bull breakout without a clear top.”
Practice
– Setup some template text somewhere (I use TradingView drawing templates)
– Start with marking up Double Tops and Double Bottoms.
– First mark where they haven’t been tested.
– Then mark where they get tested.
– Look at what happens to the leg afterwards. How strong was it? How clear did price move?
– Look at whether the DT or DB was near the test or not?
Example 1

– Here is an example from yesterday’s PA
– Do you notice once price tests a prior S/R area, the price moves more consistently or uniformly?
– The bear move from 28 after a DT?
– The bull move from 34 up after the DB?
– The bear move from 57/58 once the DT was in?
– Finally the bull leg up from 72?
Example 2

Action
– Practice reviewing prior days (10 – 20 charts at first)
– See how you can structure larger sized trades after S/R is tested
– Can you find examples where price never tested S/R and after awhile traders decided it would not and got in anyway?








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