let me try- my first rule of trade is not to try to predict the market. so i try to be as empty headed as possible, ie not to be pre- occupied with any predetermined notions/levels. so s/r does not make sense, atleast to me. read somewhere "there are no resistances in bull markets and no supports in bear markets". these support/resistance levels act as hindrance while riding very large moves.
Yes, of course. They are very important. Actually price movement is only a constantly test of last highs and lows. Which ones are important you must find out on your own.
Most important are daily, weekly, and monthly - charts high and lows. Thats were the markets are going to retest it. Since the markets are a matrix of patterns within patterns, you must understand that only 1 support or resistance means nothing alone. But if you have a monthly high and a weekly, toghether with a daily double top, you will have high odds that the market goes down soon.
At those points or areas (support and resistance), either the levels hold or breakouts occur. (A lot of money can be made on breakouts.) What's important isn't the level itself but how price reacts, and how orders are executed, at that level. Have on open mind for either outcome. Like eft said, try "not to be pre- occupied with any predetermined notions/levels." I'm a tape reader. S&R are useful. But the tape is my only best friend.
See the Support and resistance as a zone "there are no resistances in bull markets" for entry identify possible support zones "no supports in bear markets" for entry identify possible resistance zones zones Use longer timeframe charts for S R analysis for what may cause a reversal on a intraday trend, TLs, Channels, Fibs, MP, Price action setups.
I dont understand this posts. My markets view is all about support and resistance. Cant you see them ? Are you blind ? They are like magnets and force the price to test them over and over again, thats why there are exist patterns out of this behaviour. In my opinion, if someone says, "i dont care about support and resistance" does not trade successfull or does not understand enough about markets behaviour at all. Often enough it happens, that you have a strong momentum trade and it looks it will fly to the moon, but at the next resistance it pulls back stronger as usual and the momentum is down. At support and resistance areas everything can change. That are the levels where traders have their orders, all kind of orders. This thread question is like, "anyone needs to eat to life". LOL
As was posted earlier, S&R are zones. Prices are a balancing act between thousands of decisions made by thousands of market players having hundreds of different motives in several parts of the world. Yes, the incentive is the same, realize a profit, nonetheless the reasons for taking a position at point A are different for separate groups involved in the markets. That's why S&R is never precise, hence a "zone". They do exist. You never want to predict the direction of prices, but certain prices always attract attention. Some value/long term investors determine that a security is undervalued at X, so they will swoop in and scale in every time X is hit if their long term outlook is still the same.
hence why certain support will (most likely) hold, given a certain bullish scenario In fact in a major bullish scenario you don't get a neat test of key support, it just doesn't retrace fully, but you use it for your decision making Sometimes you get a I HnS dance around support before continuation Sometimes you get repeated failures of support which indicates weakness, which may mean a good reversal will follow at a later point in time