Clue to price direction at support

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glebecki

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If price is bouncing back and forth off support but essentially remaining at support,
what do you look at or what do you look for to give you a clue that price will eventually move up from supprt towards a higher resistance level above; or give you a clue that price is destined to fall off support down towards a lower support level below?
Please answer or comment. Thanks, --george
 
George,

As a first suggestion look up Wyckoff using the search facility.
Also go to Technical Analysis-Price and Volume

You are asking one of the most interestingly difficult questions in trading. One clue, price more frequently continues than reverses. Another, what is volume doing will sometimes give an answer. Another, what is price doing within the congested range (bar lengths, lower highs, tests etc).
 
glebecki said:
If price is bouncing back and forth off support but essentially remaining at support,
what do you look at or what do you look for to give you a clue that price will eventually move up from supprt towards a higher resistance level above; or give you a clue that price is destined to fall off support down towards a lower support level below?
Please answer or comment. Thanks, --george
Click to expand...
================================================================

how many times does it hit support ?? More than twice is a good indicator that it will prob break, if not that very second, then pretty danged soon.

Whats the volume doing --- is there tremendous volume with the price moving in a tight range --- probably going back up as the shorts are covering and loading up to go long.

and while this place LOVES to trade naked, which constantly gives the McGiver sisters chuckles, one or two indicators, the bols pointing DOWN, the bottom LRC WAY below, the fib at 32%, the trend DOWN and significant support below might tempt one into believing theres more downside ahead !

mp
 
Thank you, nine, for your helpful response to my question. I will check out your suggestions and watch carefully for the clues you provided. -- george
 
Thank you, mp, for your helpful response. I do not understand 'LRC'. What's that?
And I liked the quote a lot. -- george
 
nine said:
You are asking one of the most interestingly difficult questions in trading.
Click to expand...

Indeed! indeed!

"If you can trust your support and resistance
And-can keep your head when all about you are losing theirs
…………You'll be a Man, my son!"

with apologies to Rudyard
 
nine said:
George,

As a first suggestion look up Wyckoff using the search facility.
Also go to Technical Analysis-Price and Volume

You are asking one of the most interestingly difficult questions in trading. One clue, price more frequently continues than reverses. Another, what is volume doing will sometimes give an answer. Another, what is price doing within the congested range (bar lengths, lower highs, tests etc).
Click to expand...

Nine,

Do you use VSA in your own trading? Just interested...
 
Not in the strict sense it would imply. Rather than trying to read each bar I take the Wyckoffian approach and try to read the overall message over thrusts, pullbacks and tests. But volume is secondary for me and if I get a strong price signal I will go anyway.

My focus is basically price action at potential support and resistance with volume as a supporting actor.
 
Mr Marcus is watching from above

I dont really care anymore I usually have R or S as my target and exit on the mad bar as it approachs hard and fast 1st time, always found if I hang around to see if its going to or not I end up giving to much back and end up all ...............

Emotional because of my internal weakness I have built my method around :LOL:... errrrr Mr Marcus ...any hope for me :)

Rather wait till it makes its mind up then go in again if I am ok with the direction it decides on.......... if not I pass

Good post mp, not repping you because it will go to your head :cheesy: nice description of price behaviour at support imho (y)

How did your move go Mr Marcus or do you never post, just indicate from above :):?:
 
nine said:
My focus is basically price action at potential support and resistance with volume as a supporting actor.
Click to expand...

Interesting... This is similar to my approach to trading!! Although I agree with a lot of the Wyckoff concepts, I have focused on those principles which can be coded and backtested.
 
Marketology & The Jet Streams effect on price systems.

j1zp8.png




Its raining pips !! Hows the rest of the song .. "i'm gonna go out n lalala .. absolutely soaking weeettt!" :)

j2uu0.png
 
nine said:
Not in the strict sense it would imply. Rather than trying to read each bar I take the Wyckoffian approach and try to read the overall message over thrusts, pullbacks and tests. But volume is secondary for me and if I get a strong price signal I will go anyway.

My focus is basically price action at potential support and resistance with volume as a supporting actor.
Click to expand...
==========================================

"THRUSTS, PULLBACKS AND TESTS"

either youve met the McGiver Sisters or you believe in the art of fencing, which does NOT mean building a place to keep the sheep contained !

have you ever watched a ziggy ?

mp
 
glebecki said:
If price is bouncing back and forth off support but essentially remaining at support,
what do you look at or what do you look for to give you a clue that price will eventually move up from supprt towards a higher resistance level above; or give you a clue that price is destined to fall off support down towards a lower support level below?
Please answer or comment. Thanks, --george
Click to expand...

You don't state what happened to price before the bouncing scenario you describe. This is important because you have broadly three price scenarios prior to the bouncing scenario.

1. Price could be in an uptrend but is retracing from a resistance level and finding support
2. Price has been ranging and is still ranging
3. Price could be in a downtrend but is barely retracing from a support level

Apart from volume,tick data, chart patterns, candlestick, price action and fibonacci retracement analysis. You could look at studies relating to momentum and volatility as you may find momentum divergence(s) and volatility squeeze(s) on one or more timeframes.

If this scenario applies to a price chart less than 1 hour it's noise :LOL:
 
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