One of the most effective tools for trading successfully over time is the application of statistical probabilities to one's execution and strategy.
Probabilities help traders make more informed decisions by quantifying certain market phenomena like support and resistance levels, opening ranges, options positioning, and market sentiment, among others.
Support and Resistance
Support and resistance levels are fundamental concepts in technical analysis. They represent price levels at which a stock or market has historically had difficulty moving beyond.
Incorporating statistical probabilities into the analysis of support and resistance levels allows traders to move beyond qualitative assessments, offering a more systematic and data-driven approach to trading.