How do you use support and resistance?

Discussion in 'Trading' started by Aaron, Jul 14, 2002.

  1. Aaron

    Aaron

    It seems there are so many ways to play support and resistance. Is one way better than another?
     
  2. ANCHOR

    ANCHOR

    I would just say that you can't really use only s/r. You need something else to back up your trades.
     
  3. *Laughs Out Loud*
     
  4. like everything else, it works. except when it fails.
     
  5. Quiet1

    Quiet1

    You can only answer this question yourself. By posing it you show that in all likelihood you have not spent the 100s/1000s of hours in front of a real-time trading screen to understand price movement.

    There is NO SUBSTITUTE for hours watching price action. The question is frankly silly (yes I asked stuff like that too years ago) but only experience would tell you that.

    All the best in your endevours,

    Q1
     
  6. TAguru5

    TAguru5

    In the short time I've been trading, I have focused 100% on S/R and will continue to do so until it doesn't work anymore. Specifically, I short resistance, and I buy support. Since I'm not subjective, I immediately blow the position on a violation. In other words, the risks I take are very small while the potential reward is HUGE. As the fella who is teaching me how to trade says - "support is support.....resistance is resistance.....until they ain't no more." Simple but effective.
     
  7. ANCHOR

    ANCHOR

    TAguru5,

    I am interested in what s/r time frames you use. (15min, 1hour,daily,5day,10day,15day,20day,ect......)
     
  8. TAguru5

    TAguru5

    Anchor,

    I focus primarily on the daily charts, but I also keep an eye on the 60 minute, particulary for the holders - SMH, DIA, QQQ, BBH, SPY. I prefer trendlines (horizontal & parallel) over MA's but I do use them as well....8, 50, & 200.

     
  9. TAguru5

    TAguru5

    It depends on your time frame. 2 minute support isn't nearly as strong as support on the daily. The most important aspect of trading, IMO, is determining your time frame and sticking with it. It's a rare trader who can trade multiple time frames successfully.

     
  10. I don't use S/R as a reason to enter a trade but will use it to make sure my target price is attainable. For example, if I see a long setup that I like but there is overhead resistance (as I see it) that can possibly stop the upward momentum before my trade reaches at least a 2:1 RR then in all likelihood I will pass up on that trade. I would then wait to see if the resistance is broken before looking for a long setup again.
     
    #10     Jul 14, 2002