One of the ideas I've wanted to focus on is trying to define zones of repulsion on a chart. If you can identify likely zones of repulsion, you have a good method of identifying places to enter and exit a trade.
So far I've identified the following factors that indicate a likely zone of repulsion. If you have a confluence of the following factors, my belief is that any price reversal is more likely to be strong and persistent. If you have a price action signal like a pinbar or engulfing bar, I would look for a minimum of three of the following factors before I would consider a trade.
- support and resistance levels
- trend lines and channels
- rejection off moving averages
- big round numbers for price levels (1.0000, 1.5000 etc)
- fibonacci retracement levels (especially 50-62.8%)
- chart patterns
- fakeouts / upthrusts out of a range
- oscillator divergence