Questions about resistance and support

I'll ask some questions about resistance and support:

1) If a resistance or support has been passed in the past, should it be considered next time when price near it?

2) When can we say a resistance or support has been broken?

Thanks

 

I think I need a chart to make me clear. In this chart, region A and B have been passed in the past, can they still be count as resistance and support regions?

<IMG SRC =http://www.elitetrader.com/vb/attachment.php?s=&postid=3823015>

 

I think your intent well meaning – else I wouldn't be responding

But what you’re asking is nonsensical


1.) It should be considered only if, and when – price considers/ acknowledges it

2.) Whenever price breaks through and moves away / or simply doesn't acknowledge it and moves on


Btw – your chart – hurts (and it's near impossible to see price)


just sayin
RN

 

I agree: your chart hurts.

It's going to be next to impossible for you to find support and resistance while peering through all of the overlays you have on your chart. If you really want to know where the S&R lie, get rid of all the lines and boxes and channels and bands and MAs and PPs and so on and so on and so on and repost it with just price, preferably on a white background. Preferably with just bars, not candles. Then I'll show you where to start, key word being "start".

 

I paste another clear chart here, if you can't see it clearly, please double click the attachment.

<img src = "http://www.elitetrader.com/vb/attachment.php?s=&postid=3825938">

 

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Mr k;

Thanks for chart
May -july chart does NOT mean near as much as a 1 year chart,10 year chart

See my other ''trend '' comments, today'' Books have been written on that subject.Enter ''search,, top right hand area.this page

 

Thank you for posting a cleaner chart.

Support is an area where buying pressure overwhelms selling pressure. More specifically, support is the zone or level at which those who have enough money to make a difference are willing to show their support by retarding, halting, and reversing the decline by buying.

Resistance is an area where selling pressure overwhelms buying pressure. More specifically, resistance is the zone or level at which those who have enough money to make a difference attempt to retard, halt, and reverse a rise by selling.

None of this has anything to do with "Pivot Points", "Fib" lines, trendlines, moving averages, envelopes, channels, clouds, bands, or anything else that originates in the trader's head, whether an arithmetic calculation is required or not. Support and resistance are in the market. They exist independently of the trader. They are there whether or not the trader even knows they are there.

If you want to find them, it will be necessary for you to find those levels/areas where price has been repeatedly turned back, whether up or down. I say "repeatedly" because if it is turned only once, it will be difficult, though possible, for you to take advantage of it, though that is another topic.

I've noted several levels of support (blue) and resistance (pink) for you. If you're interested, try to locate others. If you can, the results will do you far more good that a dozen lines and patterns and indicators.



Note: you will usually be able to tell whether or not you have pegged support or resistance correctly in real time by how price reacts when it breaks through one of these levels. Here, for example, price practically rockets past resistance in most instances.

 

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Kiev;
I agree with much of that;
except 50 day, + 50 period moving average can be very helpful Prices may or may not bounce along OR under 50 dma;
sometims they DO, sometimes dont.

Not much resistance in a bull trend/market;
not much support in a bear trend /market.
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Jack Schwager top trader books;
book of Proverbs, candle chart books, all of these books are helpful.

If you want to trade SPY, silver, cash silver.....[not a stock tip; it's an educational comment], you would want plenty of SPY,silver charts/chart books on silver......................................,and all data/silver ,SPY prices.

 

BINGO!

 

1. All trading is done in a window. The four sides are determined in the same manner all the time.

a. The right one third of your display is devoted to lines you draw which extend into this space. This is the future "container" of market variables and where the Break Out (BO) will occur.

b. You are currently unable to know what the left side of your window really is. So your not being able to do this tasks means that you cannot determine the other two aspextcs of your window.

c. What you are calling resistance does not matter at all.

d. what you are calling support does not matter at all.


2. "When can we say" is a reference to one and only one specific event in the market's operation.

This is the criteria which determines the answer to 1. b. above.

There is only one criteria and it is the only criteria that exists.

A measure is taken of the kind of turn that is occurring during the event of a turn. This turn is a turn from one dominance to the other dominance.

The best practical way to do this is to use a look up table.

For the moment lets assume you can do this process. You have solved the 1. b. part of your question.

For 1. c. substitute the word resistance with the word "upper" and apply upper to the independent market variable.

For 1. d. substitute the word support with the word "lower" and apply lower to the independent market variable.

Someday, you will discover that during trends, the context of a trend changes as various trend events occur to form the trend. Perhaps you have realized that trends have two ends: beginning and ending. Between these is the middle where the "context" keeps changing.

1. c. is called the beginning and 1. d. is called the end for the short trend case. (The opposite is true for long trends.) Trends are either completed or NOT completed AND in either case they still have the two ends. Thus the look up table is arranged to take these matters into account.

For you to make any progress with the present dilemma your mind gave you, you will have to change how you think about markets. Lets say you have encountered trend containers other than support and resistance. Lets say you can associate a definition with these alternative names. If so, then you are on the way towards getting out of your dilemma.

Here are these alternative names: Right trendLine (RTL) and Left TrendLine (LTL).

The UPPER line is ALWAYS the RTL and the lower line is ALWAYS the LTL.

The picture of the market is always in these four sides (going clockwise: RTL, future, LTL, beginning of the trend. Anything outside of this framing is NOT to be CONSIDERED.

Obviously, the end of a prior trend is the same as the beginning of the new trend.

S and R are static and not usefule. The RTL is most important and the LTL comes from the RTL.

To see your dilemma stated in other terms, search the posts of trader.fighter.