Support and Resistance Levels

Discussion in 'Trading' started by libertad, Apr 16, 2004.

  1. My firm has alerts software that specializes in spotting these levels in real-time. PM me if you are interested in checking it out.
     
    #21     Apr 16, 2004
  2. dbphoenix
    Elite Member

    Registered: Sep 2002
    Posts: 4250


    04-16-04 01:33 PM

    The MA is generally irrelevant unless it coincides with price S/R. As you say, it's concentrated price levels, either by volume or by time or by effort or any combination thereof. The source of the buying and selling is irrelevant.

    As for your "guessed visual" question, I'd have to know your strategy and your tactics. I don't much care about the bid and ask or about T&S.
    ..................................................................................................

    The thinking with regards to the concentrated price levels is that there is always a reason that demand or supply happens....

    For example....you pull up a daily chart ....you look at the concentrated price levels....and you think about this scenario...

    Stock float: 200,000,000
    Price accumulation levels: 10% lower...visual support
    Negative news: price declines 10% to same level in am...
    5x normal daily volume...at the mark
    The 5 min stops...at the mark...green kicks in...I'm in...
    Price regains 2%...red kicks in...I'm out...

    Sound familiar...unfamiliar?..ie...no extremes..no play ?
     
    #22     Apr 16, 2004
  3. dbphoenix

    dbphoenix

    If you're buying a strong bounce off price support, that seems okay by me if it fits with your tactics and risk tolerance.
     
    #23     Apr 16, 2004
  4. dbphoenix...thank you for your responses...

    To me....the LT chart tells me where the investors like it...when the price moves in extremes...not normal...then the LT players have some thinking to do...In the past they liked it here...why not like it here...again...no fundamentals have changed...

    You see the visuals...it's not Friday afternoon...or next to a holiday...If it drops to the next visual...they should like it even more...green starts...you add...when advances to next visual...I'm out...

    Sound familiar....no extreme...no play ?
     
    #24     Apr 16, 2004
  5. dbphoenix

    dbphoenix

    See my previous answer. :)
     
    #25     Apr 16, 2004
  6. DVB

    DVB

    As long as we are talking about S&R, is there a way to backtest S&R levels with Excel or VBA? How would you define it with formulas?

    DVB
     
    #26     Apr 16, 2004
  7. SumJurk

    SumJurk

    No offense, but I think that's what most traders call them...the Pivot and its corresponding Support and Resistance levels.

    And, as far as they're significance goes, I don't think you give them the weight they deserve.

    But, you're right, this discussion doesn't really belong on this thread...
     
    #27     Apr 16, 2004
  8. SocalTrader
    Senior Member

    Registered: Oct 2002
    Posts: 329


    04-16-04 02:06 PM
    Re: Support and Resistance Levels


    --------------------------------------------------------------------------------
    Quote from libertad:

    What is the best method for calculating support and resistance levels?
    --------------------------------------------------------------------------------



    My firm has alerts software that specializes in spotting these levels in real-time. PM me if you are interested in checking it out.

    .......................................................................................................

    Over what time frames? min.....daily...etc...
     
    #28     Apr 16, 2004
  9. dbphoenix

    dbphoenix

    Yes, that's what most traders call them. That's why I used the word.

    As to significance, I give them the weight that is justified by their performance.

    And as to the thread, there have been, as I said, two lengthy threads on the subject already. Again, anyone who's interested need only do a Search of Trading using "pivot".
     
    #29     Apr 16, 2004
  10. SumJurk

    SumJurk

    Not trying to nit-pick here, but you didn't use the word. You said pivots. That's why I asked you if you meant the S/R levels to be included in pivots.

    And, you said yes, if that's what I call them. And I said most traders call them S/R levels...
     
    #30     Apr 16, 2004