price channels

Discussion in 'Technical Analysis' started by reactor, Apr 17, 2003.

  1. reactor

    reactor

    hey people!

    can pricing channels be condsidered a form of support and resistance indicator?

    thanks for your time folks!
     
    #1     Apr 17, 2003
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  2. maxpi

    maxpi

    If they are set up right. Worthy of some backtesting time for sure.

    Max
     
    #2     Apr 17, 2003
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  3. bobcathy1

    bobcathy1 Guest

    Try using bollinger bands and keltner channels for back testing. I got some decent results on them on TradeStation.
     
    #3     Apr 17, 2003
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  4. gms

    gms

    reactor: There's a substantial fact to be infered from bobcathy1's post, and that is that BB and Keltner will each give you different prices for your S/R. What's more, different settings for those different indicators will give you different prices. What's more, different time frames for those different settings for those different indicators will give you different prices. Whew. So, in short, S/R is effective so long as a good number of people get active at the same price, which is probably more key than which indicator, or which setting, or which time frame.
     
    #4     Apr 17, 2003
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  5. spreadem

    spreadem

    For price channels, I lean toward them too. :)
     
    #5     Apr 17, 2003
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  6. reactor

    reactor

    thanks for the reply guys!

    im using a minute graph on the FTSE 100 cash index to spreadbet on it, along with a parabolic SAR for early exiting. it seems ok. i might have to read a book about charting to identify trend and S/R lines more easily as the only obvious S/R line is the opening price line.

    i'll keep you folks updated with my progress!
     
    #6     Apr 18, 2003
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