Price movement is a battle thru Trendlines and S/R

Discussion in 'Trading' started by Digs, May 20, 2003.

  1. Digs


    Do you agree ?

    I draw all the major daily trendlines, with all major support and resistance levels from daily pivot points on the chart. This gives me the key price points where I expect the stock to either break or consolidate during intraday trading. Then its a matter of making a judgement if price is going to move to challenge the next key point or reverse back to previous key points. Of course some stocks show better reactions to these levels than others.

    So why do people need stockastic, RSI, CCI etc, mathematical lagging tools to trade when price and key price levels is where the real battle if fought !

    Do you agree ?
  2. Amen to that

  3. yep, 100%. the hard part isn't knowing what the levels are; it's getting filled at those levels and judging whether or not the levels will hold, and what it means when they don't...
  4. Digs


    Will price turn or break ???

    Price and patterns, double tops, bottoms, contiunation patterns.

    But more so the morning trading is where the battle is, and ones best chance of getting it correct !

    Midday and afternoons can be a bit dodgy !
  5. tmb


    I think even lagging tools have merit if they are widely followed. All of us market participants need certain prices that we agree are significant, so that we can jointly watch or decide what happens when we get there.

    But for me, prior highs and lows are absolutely the most fundamental. Even a trendline is a slight abstraction because you can have issues such as (1) whether to use arithmetic or logarithmic charts, (2) whether to look at 24-hour data or RTH only, (3) whether to only consider trading days or whether you should include weekends and holidays when drawing the trendline. (After all, market psychology can change with time, and so the passage of time can eventually affect prices when the market re-opens.)
  6. lundy


    price movement is a battle thru buyers and sellers.

    trendlines are subjective interpretations of PRIOR support and resistance.

    this is why sometimes price will move thru a trendline without even pausing.
  7. Brosh J.

    Brosh J.

    So what is better?
  8. Because they think it is more scientific and also it is more easy: any basic program can do it :D. For trend lines you must do it by hand when one use program they are not very pertinent.

    As for the direction of the market my model can give a bias and not only support and resistance (although they are potentials that generally coïncide with support and resistance but if I really wanted support and resistance I would use other sets of equations). For example because we have opened under the blue line which is interpreted as consolidation level (see right chart left chart was for yesterday's session) the bias was down - and it could be even anticipated that the nearest point at 8541 will be tested before (it could have been refined using lower scale analysis at 8551):

    <IMG SRC=>

    So you can have more than just support and resistance levels to get a real hedge especially if you want to challenge the market makers on lower scales you must be as armed as these sharks :D.

  9. lundy


    range lines.
  10. lundy



    i cant figure out what the hell your charts mean. Maybe you could dumb them down a little bit, VISUALLY. We're not all scientists here.
    #10     May 20, 2003