Magos is talking about pivot points.
These, like diagonal trend lines, channels, mas and fibs might or might not be support and resistance.
True support and resistance is horizontal and its based on what price has done before. When it runs up against a point and then can't get thru ... that is meaningful. So look at charts and look at what happens where price runs up against prior zones of contention. How many times does it work? After so many times is it likely to break through? Does resistance become support and so on.
Edwards and McGee (spelling?) do a bit of work in this space but there should be some threads on it here too.
I like your use of the word
TRUE? what about telling that Technical Analysis is an ART and that we are all artists!
When it comes to TA (Technical Analysis), each person can have a difficult understanding of the market (different strategies ,patterns ,methods, implementations ,levels ,etc a million other things) but basics are basics, due to the fact that market is based on Micro and Macro economic factors.
What young traders must understand, when they start becoming profitable that one day the pattern can change, therefore they have to be dynamic and change their style.
A trader should never limit them self’s only in TA.!
According to investopedia
Reviewing Different Types of Traders
Before we focus on swing trading, let's review all the other major styles of equity trading:
• Scalping - The scalper is an individual who makes dozens or hundreds of trades per day, trying to "scalp" a small profit from each trade by exploiting the bid-ask spread. (You can read about scalping in Introduction to Types of Trading: Scalpers)
• Momentum Trading - Momentum traders look to find stocks that are moving significantly in one direction on high volume and try to jump on board to ride the momentum train to a desired profit. (You can read about momentum trading in Introduction to Types of Trading: Momentum Traders.)
• Technical Trading - Technical traders are obsessed with charts and graphs, watching lines on stock or index graphs for signs of convergence or divergence that might indicate buy or sell signals. (You can read about technical trading in Introduction to Types of Trading: Technical Traders.)
• Fundamental Trading - Fundamentalists trade companies based on fundamental analysis, which examines things like corporate events such as actual or anticipated earnings reports, stock splits, reorganizations or acquisitions. (You can read about fundamental trading in Introduction to Types of Trading: Fundamental Traders.)
.. trades that are right because for some reasons he only can understand!
