Important TA concept of "support"

Discussion in 'Technical Analysis' started by Scataphagos, Jul 25, 2024.

  1. maxinger

    maxinger

    [​IMG]
     
    #11     Jul 26, 2024
    Darc likes this.
  2. Darc

    Darc

    I just gave @Scataphagos 6 Likes, just for blocking you! Hilarious! :D

    SPECIAL OFFER
    The next 10 people who Block Overnight will all recieve 6 Likes! :D
     
    #12     Jul 26, 2024
    HawaiianIceberg likes this.
  3. Overnight

    Overnight

    Yet you do not have me on block. Are you abusing the block function? Yeppers.
     
    #13     Jul 26, 2024
  4. Darc

    Darc

    How could I be abusing the Block function if I don't have you on Block ... dummy.

    I'd never Block you Mate. It's too funny running Rings around you : D
     
    #14     Jul 26, 2024
  5. Good Morning Scataphagos,

    Yes, this is the best way to trade to keep the life simple.

    It is too much work and headache finding other ways to make easy money in the trading business.

    Because if you read a bunch of trading books to learn how to trade, they author could be lying and you get scammed and waste time.

    If you buy a trading course, the seller is lying and scamming.

    So best to following the Price on the chart for free.

    And can not code algos forever cause too much work to find algos that work forever. So algos is a waste of time as well. You bet on 1 algo you lose, then start over again. Too much work.
     
    #15     Jul 26, 2024
  6. Darc

    Darc

    See, when you think about it @Scataphagos is 100% correct. Every Breakout, every Pullback, every Reversal occurs off a level of Support (or Resistance). The point of the Breakout or Bounce is a S or R.
     
    #16     Jul 29, 2024
  7. panzerman

    panzerman

    The problem with defining support and resistance classically it is always a backward looking calculation. There are a million ways to define a trend as well as high and low. You have to be able to define both in real time imo.

    Here is how I do it currently in real time. First, define a trend using a forward-backward lowpass filter, because it has zero group delay (zero lag.) More on this later. I define low and high by whitening the price data, and then lowpass filter the whitened data followed by automatic gain control to normalize the data to get it to swing between 1 and -1. Support is a value of the oscillator less than -0.5 and the forward-backward filter having a positive slope. Resistance is a value of the oscillator greater than +0.5 and the forward-backward filter having a negative slope.

    Why do I use indicators? Science! It's something that can be mathematically defined and tested. John Ehlers is the man whose articles I utilize. Now, forward-backward filtering is true zero lag, but also noncausal, meaning that future data can change past values of the calculation. Such is life.

    In back testing, this method has positive expectancy, but by using a noncausal filter, one can never be 100% certain. I have only been utilizing this method for about three months and the sample size of trades is relatively small. Also, I have some C# code, that scans a universe of 120 tickers for signals.
     
    #17     Jul 29, 2024