FTSE Does it Again: Respecting Support and Resistance Levels

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This morning, out of total randomness, I thought I had a look at the FTSE on a 2 min chart. The chart above was what I found, it was respecting Support and Resistance (S/R) levels like a textbook chart, bouncing and breaking various levels as it should and making trading pretty BORING.

This is the FTSE 100 on a 2 min chart on the 18th of May 2012.

If you are not familiar with the concept of Support and Resistance levels, please have a read at the following articles:

Do Not Trade Unless It’s Textbook Clear

This is how trading should be, it should be boring and, more importantly, it should be boringly profitable. On the 2nd of May, FTSE did the same thing on the 5 min chart (click here to read the article), it was bouncing up and down at levels that are screaming out to the traders.

There is no doubt that the Indices, Forex, Commodities and Stock market often respect S/R levels. However, traders should only pick the best charts to trade. Like it or not, S/R levels are not respected everyday and the best days are when the charts are as clear as a Textbook chart. By choosing the best charts, the probability of a winning trade is greatly increased.

Conclusion

I hope the message is clear, traders should always be patient and walk away when the charts are not clear. Also, be a diligent trader, Textbook charts are not profitable unless traders makes an effort to find them.

Thank you for you time and happy trading.

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