It may surprise some to know that I have subscribers who use the TraderSmarts Numbers strictly for confirmation. These subscribers get their own support / resistance areas everyday. I encourage this! So why would you want to use the TraderSmarts Numbers if you get your own areas?
Well for one thing the TraderSmarts Numbers are extremely accurate! It is not uncommon for a TraderSmarts Number to be the high or low to the tick, or within a few ticks, of an intraday rotation, or of the actual high / low of the day. So what is the best way to use the TraderSmarts Numbers in tandem with your own numbers? The following is one way I recommend:
1. Without looking at the TraderSmarts Numbers you get your own areas for support / resistance for the next trading session (part of your nightly homework).
2. After you get your own areas you go through the TraderSmarts Numbers and compare with the areas you came up with. If a TraderSmarts Number lines up with your own area you put an asterisk next to your own number or designate it in some way. You give this area added significance for the following session. If it lines up with a "Highest Odds Short FTU or Highest Odds Long FTD" or an area I talk about in the contract notes you give it even more of an added significance.
3. The next step is key and there are two ways to do it depending on where you are at with your own areas:
A) If you are extremely confident in your own areas you ignore all the TradersSmarts Numbers during the following session that don't line up with your own. Don't even look at them don't know them. Don't confuse yourself.
or
B) If you are just starting to create your own areas or not so confident in them then you include the TraderSmarts Numbers that don't line up with your own areas as "areas to pay attention to" for the following session as well.
4. Then after the day is over you go through the charts and see how price reacted at your areas and at the TraderSmarts Numbers. This is only for review. If price reacted at a TraderSmarts Number that you didn't have see if you can see something that you didn't see before as to why that area would be significant.
Doing this will help you learn to create your own areas of support / resistance. If you already create your own areas of Support / Resistance then using the TraderSmarts Numbers in conjunction with your own areas will provide added confirmation prior to the next trading session of significant areas that you need to be paying attention to.
This confirmation and confluence alone can be an invaluable asset to your trading and is the reason I have subscribers who use the TraderSmarts Numbers strictly for this purpose!
Trade smart and trade well!
www.tradersmarts.net
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