Best Thread Support & Resistance Explained

re: Support & Resistance Explained

DionysusToast said:
I find it most bizarre that no-one can address real-life scenarios like this or even want to discuss them. It has to be charts or nothing.
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When you attempt to discuss things like this the thread turns into a fundamental vs technical debate (when, strictly, you're not actually talking about either) then it gets flamed to death.
 
re: Support & Resistance Explained

DionysusToast said:
Are you saying someone is copying the work you copied ?
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A humorous concept worthy of, perhaps, a wry smile but unfortunately it's not quite true.

The writing I did on getting a job in the industry was 100% original and the site has lifted it verbatim.

And yes, a lot of my work was loosely based on my interpretation of J16 although most aspects of our approach could not be further removed.

Still, credit where credit is due - permission to start the thread was actually asked of J16 before I even began it.

At any rate, I only posted to expose the remarkable (and in turn, somewhat humorous) irony of the situation in which a detractor of mine then goes ahead and recommends a link where someone has basically copied my original work ;-)
 
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re: Support & Resistance Explained

Haven't you posted a statement before k-fed? Could have sworn I saw a few sbetting statement of yours a while back :confused:
 
re: Support & Resistance Explained

DionysusToast said:
I find it most bizarre that no-one can address real-life scenarios like this or even want to discuss them. It has to be charts or nothing.
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I guess it's because a lot of people now start off with charting.
Someone could probably find examples of SR just looking at prices - eg Livingstone trading stories - but I'm just not sure it;s how many people trade these days unless they are completely fundamental players.
We'd have to have a chart showing how price stayed at price x for x mins and how when it came back to it next week it also hung around price x for a statistically significant longer amount of time, etc. etc.
 
re: Support & Resistance Explained

D70 said:
Reading this thread. I am getting the impression that "traders" have become removed from the coal face. They talk of "MACD's" and price action like they are some kind of mystical tool. Do you even know how an MACD indicator is constructed? Do you actually know what causes a price to move? What is "price"!? And support / resistance.... WTF are you guys talking about. Doesnt anyone relate their trading / price action to everyday observations? I think you are all way off the mark.
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Then put us all back on the mark...otherwise it is pointless to post what you posted. It is just too easy to be critical. I've seen some of your other posts, and I'm sure you've got some good thigns to share.

Dionysus the example of a company takeover is a good one. You probably haven't received many examples like that, because many here trade forex or the indices rather than individual shares. Also when you look at the chart, if there is a takeover, price will move significantly, and hover around the area as you mentioned. This is usually enough for the chartist to wonder what caused that. It is at minimum noticeable on the chart that something unusual has occurred, and you can then take your head out of the sand and find out :)
 
re: Support & Resistance Explained

scose-no-doubt said:
When you attempt to discuss things like this the thread turns into a fundamental vs technical debate (when, strictly, you're not actually talking about either) then it gets flamed to death.
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True enough, I'm not talking about either or maybe about both. I am avoiding a "TA doesn't work stance" I was hoping we'd talk more about how markets are different and the different factors in play.

I can see BBMacs approach if he's day trading currencies because apart from news, you don't actually have much to go on other than price.

Shakone said:
Dionysus the example of a company takeover is a good one. You probably haven't received many examples like that, because many here trade forex or the indices rather than individual shares. Also when you look at the chart, if there is a takeover, price will move significantly, and hover around the area as you mentioned. This is usually enough for the chartist to wonder what caused that. It is at minimum noticeable on the chart that something unusual has occurred, and you can then take your head out of the sand and find out :)
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Absolutely true - in fact the buyout is a bad example because the buyout price is naturally a good mark-up on current market and is very obvious. It is a good example because I wanted to provide 1 example that showed past events messing with S&R (buyout) and current events messing with S&R (short term traders pushing the market). I would agree that you would see unusual activity and investigate. Those are the types of things I thought we'd all be trading in our own ways.
 
re: Support & Resistance Explained

this is how we work with p/f charts.
not only do we look for s/r,retests and clusters etc
we also use 45 degree trendlines as supp/res.ie divide the chart into bullish and bearish sections using 45 degree trendlines.these should really make most of the decision for you
i routinely day trade from 1 min p/f data input using only 45 degree trendlines.the strike rate is incredibly high
enclose chart of eurusd
10 min data input..box size is 12 pips by 3 reversal
lines are 45 degree trendlines
2 weeks of data

scyg6s.gif
 
re: Support & Resistance Explained

i did not explain the rationale behind using 45 degree trendlines
if the price cannot move up or down by the amount of the box size,then it is in a consolidation.so a 45 degree trendline ,especially on 3 box reversals means that the market is trending and not moving sideways.we are looking at price action only,and not change in price over time
so,we can then break down each chart into bullish and bearish sections using the 45 degree trendlines
 
re: Support & Resistance Explained

The 45 degree line is a somewhat misleading and inaccurate charting tool.
If you zoom out, your line will be less than 45 degrees..... and vice versa.
 
re: Support & Resistance Explained

P&F trend lines do not follow the exact same conventions as trend lines for bar charts, and are much less subjective. First, they do not necessarily have to connect previous tops or bottoms. Second, the way they are constructed will always result in them being charted at 45 degree angles (or 135 degrees if decreasing)
 
re: Support & Resistance Explained

D70 said:
The 45 degree line is a somewhat misleading and inaccurate charting tool.
If you zoom out, your line will be less than 45 degrees..... and vice versa.
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sounds like you dont have the right charting package
is it it-finance ??
 
re: Support & Resistance Explained

If the size of an angle of any line on a chart varies according to scale; say if you are drawing a line free-hand, then if you change the scale the line will not intersect the same points and you cannot infer any support or resistance exists. If the charting package links particular points then the line and it's angle will be invariant. Of course, whether or not that makes such a line a potential area of support or resistance is a matter of conjecture.

Perhaps it is better to consider support and resistance as examples of positive feedback loops created by traders responding to the imagined patterns they see. When you do that areas become soft and it is easier to accept the way reality often fails to validate your particular view of how price action works.
 
re: Support & Resistance Explained

cable...gbpusd
3 weeks of data
16 pips by 3 reversal
10 min data input
a 45 degree bearish resistance line since 17 october
nice and simple to trade from..imho

2ezianm.gif
 
re: Support & Resistance Explained

Keep in mind that the best professional traders, those that are the cream-of-the-crop, the very best-of-the-best, the most elite traders in the world are accomplishing 3-8% per month, so why are you aiming for 3-8% per day? Are you a better trader then these seasoned hotshots?
 
re: Support & Resistance Explained

fxcoaching said:
Keep in mind that the best professional traders, those that are the cream-of-the-crop, the very best-of-the-best, the most elite traders in the world are accomplishing 3-8% per month, so why are you aiming for 3-8% per day? Are you a better trader then these seasoned hotshots?
Click to expand...

Actually some prop shop traders are making around 50% per month but...they know what they are doing.
Hedge funds making around 10-20% per year and other money funds have a lot more than just basic risk management to take care of including balancing, etc. etc.
 
re: Support & Resistance Explained

bbmac / stewart
i saw that you have a grading system for supp/res.is it possible you could let us know how you grade,and how you use it ?
many thanks


ps.was wondering,if i could get office space/a room for a saturday morning in the future,preferably in the west end,would you give us a seminar,as you did some years back.by invitation only
 
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