Thats 5pm tom7pm, thats lunch time, markets too slow for me, I hit the gym,get back for last 2 hours into the close. Any point you can find where your risk is less than your upside and you win rate 50/50 is valid, its all about containing that risk.
let me take the liberty to give my perspective. e.g. there are repeatable patterns... buying on retest of panic bottoms I have been for the past 10 years.. (aka BTFD)..with the conviction that stocks are way under valued, compared to other asset classes. and for 'making it in the stock market'... you really need just 1 super cycle like we've had since 2009... now you could say that since 2009, buying anywhere would have been good also.... that is true... 70% of my accumulations are not market-timed.. i.e. if the portfolio is cash heavy I just buy blind.... the other 30% is timed..
Honestly, I think a lot of edge can be taken from modifications of papers. I've read enough papers in my day to know a decent one. Certain things like proper experiment design, sample size, use of p-values, hypotheses, etc are good indicators. I think many of the papers we read on machine learning and statistical techniques like ARIMA prediction are very poorly designed. Many times they don't even backtest properly. I figured I would take a step back and see if there was anything useful contained inside of TA trendlines, despite how subjective they are.
Some good responses here, I just want to add the obvious that different assets/instruments behave differently than others. In my non-objective observations it seems that bonds/rates are the easiest to use S/R on, stocks are the hardest as they mostly trend in one direction for a long time. A stock's "equilibrium" value can continually increase or decrease without a substantial amount of mean reversion due to fundamentals of the business. A stock's mean reversion is towards/away from valuation rather than absolute price, while rates either just move slow enough or generally tend to mean revert much more and revert to/away from absolute price(rate). This is of course in my very unscientific opinion.
This is the first time I heard of S/R explained in terms of quantum theory - I bet "scientific thought experiment" wasn't what OP was expecting .
%% True, doz888; mostly true in bull market UpTrends. NOT much truth[ support] there in a bear market @ all, as in OCT, NOV,DEC 2018/200 day moving average. For example SPY,QQQ.,
hi. you put it as traders are using only support and resistance in the decision of getting into a position. I'm sure that this is not what the author thought about. a good trader use more indicators and technics before he press the sell/buy button so there for he doesn't has to fear the s/r lines.
It is better Study on Continuation and Reversal and not Study on Support and Resistance Do not assume they are similar.