Long term outlook = big money/easier to spot large movements

Discussion in 'Index Futures' started by coolweb, Aug 28, 2005.

  1. Hello,

    So I've been testing in realtime, and heres a question to the SWING/LONG term who put up BIG numbers.

    It seems from my point of view that You need to look at longer term ranges/channels such as days/weeks to see the heavy support resistance areas,
    once these have been tested and fails, the move is violently down or up, its not like a consolidation move down or a staircase up, its a violent sell down, it seems all instutions know once this point fails , end is near for the short term.

    The problem with short term ranges is , well you always don't really know how much push the move will be, how strong it will be, its sometimes stuck in the middle of the range zone so its chopping without the full force of a violent move up or down.

    I'd like to know if any long term traders utilize this same IDEA and what comments they have against this.

    I will elaborate more on the importance of RISK/REWARD benefits from this idea after a bit.