Best Thread Support & Resistance Explained

[arabianights]

re: Support & Resistance Explained

It meaningless anyway. What is %? The overwhelming majority of treasury type trades go through a market maker. So that's 50% speculation straight away by some definition

 

[virtuos0]

re: Support & Resistance Explained

Imagine you buy a Twix for 50p, then next week you see that the Twix in the same shop has fallen to 45p! Total bargain! So you buy one.

The week after you go back in the shop and they are back up to 50p, you're a little pissed off, but you figure that you've paid 50p before, it aint the end of the world.

The week after you pop in and see that the Twix has risen to 52p! Bugger this for a lark, I've never paid that much for a sodding Twix you think to yourself, and go back home miserable and Twixless.

That's how S&R works.

 

[Scotty2Cues]

re: Support & Resistance Explained

Imagine you buy a Twix for 50p, then next week you see that the Twix in the same shop has fallen to 45p! Total bargain! So you buy one.

The week after you go back in the shop and they are back up to 50p, you're a little pissed off, but you figure that you've paid 50p before, it aint the end of the world.

The week after you pop in and see that the Twix has risen to 52p! Bugger this for a lark, I've never paid that much for a sodding Twix you think to yourself, and go back home miserable and Twixless.

That's how S&R works.

wat?

 

[scose-no-doubt]

re: Support & Resistance Explained

Imagine you buy a Twix for 50p, then next week you see that the Twix in the same shop has fallen to 45p! Total bargain! So you buy one.

The week after you go back in the shop and they are back up to 50p, you're a little pissed off, but you figure that you've paid 50p before, it aint the end of the world.

The week after you pop in and see that the Twix has risen to 52p! Bugger this for a lark, I've never paid that much for a sodding Twix you think to yourself, and go back home miserable and Twixless.

That's how S&R works.

D+

 

[Vorbis]

re: Support & Resistance Explained

there are so many facts that are wrong...

Can a fact be wrong and still be a fact? And if it is wrong, is it in fact, a fact in the first place?

 

[arabianights]

re: Support & Resistance Explained

king crimson fan?

 

[valutist808]

re: Support & Resistance Explained

very good post DT ... i think will help us a lot with some charts explained .. i can agree with your point of view but some examples would be perfect.

Best,

 

[Dommo]

re: Support & Resistance Explained

Can a fact be wrong and still be a fact? And if it is wrong, is it in fact, a fact in the first place?

This sentence is false.

So, yeah, uh, no, uh, yeah, uh, no, uh...

 

[Vorbis]

re: Support & Resistance Explained

king crimson fan?

The wall on which the prophets wrote
Is cracking at the seams.
Upon the instruments of death
The sunlight brightly gleams.
When every man is torn apart
With nightmares and with dreams,
Will no one lay the laurel wreath
When silence drowns the screams.

Confusion will be my epitaph.
As I crawl a cracked and broken path
If we make it we can all sit back
And laugh.
But I fear tomorrow I'll be crying,
Yes I fear tomorrow I'll be crying.

Between the iron gates of fate,
The seeds of time were sown,
And watered by the deeds of those
Who know and who are known;
Knowledge is a deadly friend
When no one sets the rules.
The fate of all mankind I see
Is in the hands of fools.

Confusion will be my epitaph.
As I crawl a cracked and broken path
If we make it we can all sit back
And laugh.
But I fear tomorrow I'll be crying,
Yes I fear tomorrow I'll be crying.

I don't know why , but T2W and trading forums in general always makes me think of this song. Knowledge is a deadly friend When no one sets the rules.

Back to the cracked and broken path...

 

[DionysusToast]

re: Support & Resistance Explained

The whole argument/discussion about support/resistance can be summed up thus:

There are areas and factors on a price chart that have historically seen imbalances of demand/supply or supply/demand, and have historically proven to be turning points in the market. I refer of course to previouis price pivots and other factors such as fibs/trendlines.

Sometimes the market respects these areas/factors if price tests again, sometimes it doesn't...and it is price action's behaviour leading up to and around them that can (along with some other technical tools if one chooses to use them) tell us which outcome has the greater probability.

It is that simple.

BBMAC - this is not a specific poke at you but In the case of short term trading the S&P, the above statement is not correct.

This is why I think we can comment on our own markets and timeframes but not see these as generalisations.

Specifically, if you said%2

 

[DionysusToast]

re: Support & Resistance Explained

I just actually _read_ this thread, it's comical how much incorrect information within.

I'm not even going to bother arguing with the incorrect opinions in it, but there are so many facts that are wrong... it's hilarious.

Come on - you know you want it.

 

[scose-no-doubt]

re: Support & Resistance Explained

I read a post by Martinghoul or someone like that who was talking about institutions pushing price to and through certain levels due to gamma exposure etc. Very interesting.

 

[DionysusToast]

re: Support & Resistance Explained

I read a post by Martinghoul or someone like that who was talking about institutions pushing price to and through certain levels due to gamma exposure etc. Very interesting.

Did you say Gamma exposure ?

 

[DionysusToast]

re: Support & Resistance Explained

Imagine you buy a Twix for 50p, then next week you see that the Twix in the same shop has fallen to 45p! Total bargain! So you buy one.

The week after you go back in the shop and they are back up to 50p, you're a little pissed off, but you figure that you've paid 50p before, it aint the end of the world.

The week after you pop in and see that the Twix has risen to 52p! Bugger this for a lark, I've never paid that much for a sodding Twix you think to yourself, and go back home miserable and Twixless.

That's how S&R works.

so these people are making these decisions based on their concept of value, what is cheap and expensive. Got that.

these people are the driving force behind the markets sometimes (e.g when price bounces off a resistance point) and they remain totally unaware that there is such a thing as TA or support & resistance.

I say this because your hypothesis is such that they are making the decision without considering that horizontal line on the chart. They move the market, yet are doing it for reasons related to their own personal concepts of value which they share with other people at the same price point. This also leads me to conclude that if such people have the power to move the markets because of their concept of value, that TA and support and resistance must be a well kept secret that allow those entrusted with the secret to profit from those making decisions based on value.

I want into that club.

 

[Shakone]

re: Support & Resistance Explained

BBMAC - this is not a specific poke at you but In the case of short term trading the S&P, the above statement is not correct.

This is why I think we can comment on our own markets and timeframes but not see these as generalisations.

Specifically, if you said%2

Why do you think it is not correct.

 

[DionysusToast]

re: Support & Resistance Explained

Why do you think it is not correct.

Balls... what happened to the rest of my bleedin post...

will re-write on Monday... sheesh...

Where did that %2 come from ???

 

[Prawnsandwich]

re: Support & Resistance Explained

so these people are making these decisions based on their concept of value, what is cheap and expensive. Got that.

these people are the driving force behind the markets sometimes (e.g when price bounces off a resistance point) and they remain totally unaware that there is such a thing as TA or support & resistance.

I say this because your hypothesis is such that they are making the decision without considering that horizontal line on the chart. They move the market, yet are doing it for reasons related to their own personal concepts of value which they share with other people at the same price point. This also leads me to conclude that if such people have the power to move the markets because of their concept of value, that TA and support and resistance must be a well kept secret that allow those entrusted with the secret to profit from those making decisions based on value.

I want into that club.

Maybe you have got everything the wrong way around....maybe the people who move the markets DO see the horizontal line....and the more people that see the horizontal line, the more effective it is...

 

[scose-no-doubt]

re: Support & Resistance Explained

Maybe you have got everything the wrong way around....maybe the people who move the markets DO see the horizontal line....and the more people that see the horizontal line, the more effective it is...

I thought GammaJammer's day in the life of FX trader thingy cleared that up for us. S'all about transacting on giving prices better than x isn't it?

 

[Prawnsandwich]

re: Support & Resistance Explained

I thought GammaJammer's day in the life of FX trader thingy cleared that up for us. S'all about transacting on giving prices better than x isn't it?

Eh yeah ...I suppose it is ? I'm not familiar with that thread ..

But take a simple example of a weekly pivot point / S/R line where price has continually reversed from over a long period of time....in the multi- trillion dollar market that we all know Forex to be...you would have to assume that some pretty big players are involved in that type of price action..

 

[scose-no-doubt]

re: Support & Resistance Explained

Not really a technical article but I enjoyed it.

http://www.trade2win.com/knowledge/articles/general_articles/day-in-life-fx-spot-desk-trader-1/

http://www.trade2win.com/knowledge/articles/general_articles/day-in-life-fx-spot-desk-trader-2/