>>>> CONTINUED FROM PREVIOUS POST
And so I started streamlining, watching every indicator <> market reaction and backtesting:
Eventually i ended here:
Thats it, this is all that really matter. What is it that move price? Liquidity. How you identify liquidity levels on the chart(assuming you know what to look for)? Not with RSI, MAs, MACD(aka McDonalds), Stochastic, not even fibs and not by diagonal lines! Liquidity are certain levels/areas on the chart and there is no better way to identify "levels" by other than horizontal lines.
There are other benefits. If you can identify valid level, it will be same important price level(or area) for any timeframe which cannot be said for indicators. You will also unlikely mark it wrong than u could diagonal lines whose everyone often draw different way. It really cant get more simple, either certain level hold or not, either big players find certain level attractive to buy or sell there, or not. On top of that, if your strategy involve this then you know you have correct strategy that will work forever. Market may change and behave differently every time but this basic fundamental point will always apply: there will always be levels on the charts where big players will buy or sell from and thus move market opposite way.
With this, you know your strategy is fundamentally correct, all u need to do is to learn identifying those levels and get skill on it. But you wont need to be afraid anymore that market may start to behave for unknown period where it periodically whipsaw all your indicators. You will not feel just "lucky" if you get it right as with indicators because you will know "yes, that was that correct level where they unloaded large orders". Even better is that with this you can also identify possible opposite liquidity pool, so you even know where to close your position with precision.
Now, it may look difficult and all, but if you are to spend rest of your life researching and learning to become successful trader, you may as well embrace this simple but correct, rock solid and timeless concept and just waste your precious time on something that actually matter: identifying correct levels on the chart where you can join the ride with THEM! I know it helped me trendemously, so it can help u too. And dont say I trade naked, I have my lines! ;)