Day Trading & Forex Forum

dbphoenix

I'm interested in price and price movement as a manifestation of the dynamics of buying and selling pressures and how the results of all this determine support and resistance and trend. This isn't about indicators or Level II or Gann or Elliott or Wolfe or Fibonacci or moving averages or "channels", which is not to say that any or all of those things may not be perfectly wonderful and may be signposts on the road to riches. But they are of no interest to me. And there may be like-minded individuals to whom they are of no interest either. If so, this thread may provide shelter and sustenance.

GirlPower

Be pleased to contribute what I can, but as I'm nort sure what you mean by the 'ignore feature' I'm going to go right ahead and ignore it.

You might want to take a look at the 'No Indicators Revisited' thread on the index forum as well, but that doesn't always run true to its title and it's pretty dead at the moment.

How about a really simple statement of what the relationships are between these aspects?

Support and Resistance are points where respectively, Demand overshadows Supply and Supply overwhelms Demand. That would assume no other direct or indirect manipulation of the price - just straightforward buyers & sellers.

High, lows and particularly round number points are likely SR points (especially decade points).

Recent High/Low points also act as SR points. Current day, previous day, weekly, monthly, 52wk Highs & Lows.

Where the bunny hits the mincer is when we look at the relationship between Price & Volume.

DBP, you're an expert on this, why don't you give us your take on it?

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Felicity
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dbphoenix

You're on the right track, but allow me to make a few modifications.

S/R are not points where demand overwhelms supply or vice-versa. They are rather points or levels or zones at which the movement of price might be affected due to the fact that price was affected there earlier by demand overwhelming supply or vice-versa. In other words, a swing high occurs because supply overwhelms demand, at least for the time being, but one cannot assume that a swing high is going to act as resistance simply because it's a swing high. It must also act as resistance in order to be resistance. If it doesn't, then it isn't. Again, this is not to say that highs, lows, round numbers are not potential S/R. But they are not actual S/R until they actually provide S or R.

As for the expert part, I'm just looking for the truth, and I've learned that the truth is to be found in price. Understanding the behavior of price is the real trick.

barjon

dpb

I'm surprised you found the No Indicators Revisited "primarily about indicators". It's far from that and it's very much along the lines you're advocating. Maybe worth you having another look from the start of the thread - if you can ignore the odd aside, deviation, argument and even the odd indicator that is

Not averse to pursuing on a different thread tho'.

Just to add to your thoughts. If the price reverses at a resistance level it can be either that new supply has come in or that demand has been withdrawn - presumably you look to volume to tell you which?

dbphoenix

If the "resistance" level has demonstrated that it provides resistance and price reverses there, it could be doing so for either of the reasons you suggest. Volume provides a clue, but since volume is only trading activity, one has to look at the relationship between volume and price. If, for example, there's a lot of activity and price is difficult to budge, then one can assume that demand is insufficient to outdo supply. That may not be the case if buyers can trigger short-covering, but you play the hand you have. OTOH, if there's not much activity but price rises anyway, one can assume that there is at least some demand, but not enough selling interest -- yet -- to curb it.

But I suspect you knew all of that already . . .

Trader333

dbp,

Yes I am also interested in your work on this as I am also a member of your Yahoo forum and I am pleased to see that you have decided to post on T2W again. Have you asked for the same on ET or is this exclusive to T2W ?

barjon,

There is a lot of talk about Elliot on the No Indicators thread especially at the beginning as well as ratios and I guess that dbp wishes to discount those as well in this discussion.


Paul

Rognvald

How does support equate with accumulation and distribution with resistance if at all?

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Rognvald

darktone

This is so similar to my view its nearly disturbing . If this bird can get off the ground and stay simple as it should then im keen to debate and hear other folks ideas on price action.

regards

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