Support and resistance on a one minute chart?

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Is it feasible to place support and resistance lines on a one minute chart and have the market respect them? I think it is, as long as you are realistic that many of the longer term traders, that means institutional size traders, will not even care about a breakout from S & R levels until it registers on a one hour chart or greater.

So the short term support and resistance areas on the one minute charts are very intra day and can break pretty simply broken, yet the same dynamics occur over the short term as over the long term. Let me explain where I am coming from, I am using a more simplistic trading approach now relying on one minute charts and support and resistance to identify simple trades around 10 -15 pip stop losses and twice that for my targets.

This allows me to lose 50% of the time and still make good money. The support and resistance on the shorter timeframes, has really made the difference, as long as you look at what it is really, which is just short term consolidations of price, that may allow the market to push the other way, as it is easier to break down, say than up through a short term channel top, where three or four times prices have recently stalled there, it is not a certainty, but it is potentially a probability. The price should reject a move through the support and resistance and push down creating a short term breakout with a clear top, this I can trade.

From an observation point of view it occurs a lot during a whole day and many times it is just perfect, especially around the Aussie open and after the European open. Late trades, I avoid as my eyes get sore, and as this is a 24 hour system, and you cannot be up all day and night, so I do a bit before lunch and a bit before dinner and it is going well.

It is the support and resistance on a one minute chart that has got me interested as it seems to give me a market edge, that is enough to overcome the spread, and it sets up and identifies enough trades, that I can put together a series of trades that deliver regular profits.

Examples of support that I have found best always need three clear areas that touch the consolidation area and it is definitely better if it is horizontal, as flat support seems clearer than sloping support. There is less human error and less personal interpretation for a start, so if it isn't flat leave it alone as it is reducing the clarity of the areas rejection of prices.

So that is it simply, yes, you can identify areas of support and resistance on one minute charts and you can certainly use them as long as you do not expect them to stop news or a market open, as you are seriously kidding yourself. They can be great guides as to where to stick your stop loss too, just pop it above the resistance area and below the support and hope the market fails to break through. This is a tidy solution to mitigating risk as well and identifying great trading opportunities and on a one minute chart they come regular, so if you miss one, it is OK, be picky wait till it is obvious as you get plenty of opportunities.

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