Another good example, of why its a good idea to trade with enough size to have at least 2 exits. ( more than 1 contract)
Please explain how you see this as not being support. What I see is a predetermined area of possible support and price action bouncing when it reached this area. I suppose it depends on your timeframe but a 40 point bounce on YM (approximately) is a nice move on YM intraday.
There are many lines that you could have drawn, and the price would/might have bounced off of any of them. But that's not a criterion of support. Support and resistance have a number of components, but one of the most important is volume, i.e., shares traded. Because a large number of people, either on one occasion or several over time, have purchased something, that amount is likely to provide support if and when price leaves that level and returns to it. That's what makes support support. Same with resistance. Draw a straight, horizontal line to the left of today's low. Note the congestion zones through which that line passes. Note the volume that accompanies those zones. Now look at the volume which accompanies the first point you've selected. There just aren't enough shares being traded there to provide support for anything. The support is being provided on the horizontal, not the diagonal.
dbphoenix, I see what you're saying. You use volume heavily in your analysis. Thanks for sharing your perspective.
NQ Wow! was there some LRBs today or what. I entered the market twice this morning, and managed to come out with 4.5pts. Then spent the rest of the day sim trading.( gave it back on the sim). Truth be told, I was only looking to fill that gap this morning, which is where I exited. The large moves caught me by surprise. There was an opportunity for a reversal entry at 7:12 ( west) but I was busy looking at other charts, making post, so it was gone before I knew it was there. As the day wore on, the pokes through my lines were more than I was comfortable with, so I stayed away. Looking at 60min. cht. I see the nq expanded its 2 day trading range by 2.5 pts. But still has retraced less than 50% 0f its dn move. And closed in the bottom of the range. ES and YM each put in higher lows for the day, on higher volume than their first low. Each of these look to me to be much stronger than NQ. I spent a large part of my day messing with goforwand's summary sheet, trying to modify it to suite myself. I'm getting close, but not there yet.
I wouldn't say I use it heavily. It's a major component of S/R, i.e., how many people are going to be screwed if price breaks through this or that level? If not many, it's not that important. Which is, by the way, why Fib sometimes "works" and sometimes doesn't, why pivot levels and TLs and MAs sometimes "work" and sometimes don't. Depends on how many people traded how many shares at that price.