indicators to show if support/resistance will hold

Discussion in 'Technical Analysis' started by pjhaggerty, Aug 14, 2009.

  1. Hey all

    i'm new to technical analysis, and I have a question for the more experienced traders up here. My question is, what indicators can you use to determine rather a support/resistance/trendline is solid or not?

    For example, let's say a stock broke through resistance. Are there any technical indicators that will show that the resistance is likely to turn into new support?

    Basically what indicators can you use to determine if there is strong support/resistance or weak support/resistance. Thanks for your replies.
  2. In this case the best there is, is rolling earnings per share.:D
  3. Doubt if there is any indicator like that.

    marketprofile may be helpful.
  4. Isn't price itself the indicator you are looking for?
  5. 1) You can only know that "after the fact". Otherwise, it would be a "holy grail" not to be revealed to anyone for anything.
    2) The "indicator" would be if the market re-traces back down to the prior resistance and no lower.....confirmation of the obvious, sort of. :cool:
  6. You could build something using a 1 min chart price & volume, along with daily pivot points ...
    So you take into account the volume on the candle that broke the pivot point S/R... Or how much volume above the avg vol was used to break that S/R...

    not sure what kind of formula you'll have to use to blend all those together, but it might be worth thinking about it...
  7. Topper


    you gotta walk before you run. i think what might help would be to watch a stock for weeks during market hours. this will develop intuition and soon you'll see similar characteristics in other stocks
  8. place a 100 and 200sma on ur daily charts, and observe.
  9. speres


    There is no indicator that will tell u this only price and volume. You didnt think it was that easy did you?
  10. metoo


    I've been experimenting with market depth recently. It helps me track the order flow. For example this morning I was able to catch the hammer bottom on ym low of the day. It started to retrace up and then pulled back down I checked the order flow and observed there more buyers than sellers which kept me in the trade. I hope this helps.

    Good Trading,
    #10     Aug 15, 2009