I know a lot of "Old Timers" subscribe to the philosophy that Support becomes Resistance and Resistance becomes Support but the "Old Timers" didn't have the tools we have today to "verify" what we are seeing or trading. If you read Support or Resistance as being an exact price point on an exact price top or bottom then the statement, "Support becomes Resistance and Resistance becomes Support" flys down the potty faster than stinky poo. There is nothing . . . absolutely nothing verifable or even remotely consistent about ANY Resistant Top becoming a Support Bottom or vice versa. In the last 10 years in the S&P, Dow, NASDAQ or other Market NO RESISTANCE TOP HAS EVER BECOME A SUPPORT BOTTOM AND NO SUPPORT BOTTOM EVER BECAME A RESISTANCE TOP. Price will migrate through and breach a sequential support or Resistance level but just because price passes through that level doesn't make it switch hats. Generalities, variables and "close" might have been good enough for the "Old Timers" but I am of the new school of traders of the 22nd Century and I want Perfect and Exact Consistency and you can't find that any Old School trading methodology and that includes Gann, Fib, Elliott, Bollinger, RSI, CCI or Pesavento just to name a few.
I've discovered your problem for you. If you read your last sentence you'll realize that you are trading in the wrong century.
"bouncing off trendlines" trendline is a construct of your own. not everyone will draw the trendline the same way, or connect at the trendline at the same point. trendline can be used as an visual aid that shows periods of overall direction, but not necessarily mean that it will be obeyed all the time.
pspr Nope, I'm trading in the correct century but way ahead of my time. It took centuries for people to believe that the world wasn't flat after the Vikings already realized it. I figure that traders will realize the Market has built in perfect indicators a few hundred years after my ancestors have lounged in the spoils.
Thanx alot for the info guys...Im going to read over all the links you posted...I never expected to many replies!!! lol Thanx again
------------------------------------------------------------------------------------ BSAM Elite Member Registered: Sep 1999 Posts: 627 05-11-04 02:54 PM .....trendlines DO PROVIDE support and resistance; IF you know how to construct them...... ------------------------------------------------------------------------------------ lilboy: Read my previous post carefully/slowly. Additionally, who said anything about "all the time"? NOTHING/nothing works all the time.
BSAM . . . never say nothing unless you have researched everything . . . and your response shows you haven't because the Market has perfection built in if you know what to look for.
Oh my goodness Prof. Next thing you'll be telling me is there is no validity to candlestick charting. You are correct, though, in your assessment that these price points are NOT exact. Trendlines are also not exact. This is presicely why so many people misunderstand (and therefore dismiss) trendlines and S/R zones.