Support and Resistance is Random

Discussion in 'Technical Analysis' started by Q3D, May 11, 2016.

  1. K-Pia

    K-Pia

    [​IMG]

    Could apply to Supports and Resistances.
    You only got two allies in trading : Conditions and Losers.
    Again .. I think that one has to know his patient.
    S&R & Co are tools for diagnosis. Tests.
    A test in itself tells nothing about X.
    You wouldn't trust someone,
    Just because it has Y.

    Then what's the payoff ?
    It coud be random as a fair coin.
    And I would bet the farm according to the payoff.
    Or it could be far less random as the russian roulette.
    And skip my turn to play that game ...
     
    Last edited: May 12, 2016
    #31     May 12, 2016
    birdman likes this.
  2. S&R lines are random in most cases. Job of a good trader is to figure out when they are not.
     
    #32     May 13, 2016
  3. "Random" and "inaccurate" are not the same thing.
     
    #33     May 13, 2016
  4. SunTrader

    SunTrader

    Randomly drawn support and resistance lines that randomly work.

    Who'd a thunk it.

    Wow how informative. :rolleyes:
     
    #34     May 14, 2016
  5. You can tell if you are having a trend up or down day by the AD Line. True trend days only come a few times a month which are the only times one should be daytrading.
     
    #35     May 14, 2016
  6. If that is the way you define trends you should never daytrade.

    I see every day at least one trend that can be traded profitable in ES.
    Last week I traded 11 trends with profits between 3.75 and 18.25 points net. I did one trade of 0.75 points which was a fake trend. LT average I trade between 2 and 3 trends every day from which most are profitable.
    The last 32 tradingdays the difference between high and low in RTH hours was minimum 7.5 and maximum 31.75 points, average was 18.33 points. So every day there was potential to make money in a trend.
    But I use a much more sophisticated way to define a trend. Daytrading is a difficult profession that needs a lot of skills. Just having money to open an account is not enough. And thinking that you are good is not enough too. Why do you think that 90% never make any money? Because they have money and don't need to proof any qualification. Even the biggest illiterate idiot can start trading if he has a few thousand dollar (or even less).

    It's like buying an operation room (because you have plenty of money) and start as surgeon without ever following an education. And then you would make, as wannebee surgeon, a statement that it is impossible to transplant a heart. Because each time you do this, the patient dies.
     
    Last edited: May 14, 2016
    #36     May 14, 2016
    profitlocker likes this.