How to Auto Trade Support and Resistance?

Discussion in 'Automated Trading' started by greaterreturn, Jul 6, 2008.

  1. TSGannGalt:

    Your quote below was most intriguing.

    For Forex, there's no volume but you said "more-so" bid/ask data to test the strength of support or resistance.


    Can you elaborate? I'm extrapolating that you either mean using Level II data or the bid/ask spread.

    Level II is virtually impossible to get data to back test with.

    So I'm guessing you mean the bid ask spread.

    Furthermore, I see some times that prices blow right through S/R and, obviously, from my own trade experience bid/ask spread would be LARGE at those points and much tighter when it hits true S/R.

    Unfortunately, the tick data I use only includes the bid prices.

    If that's what you meant, it makes sense. So I need to get some live bid/ask data to test out the idea.

    Please clarify if I'm on the wrong track.

    Thanks again.

    Wayne
     
    #11     Aug 14, 2008