disagree fibs can be different depends on the person believes on the high & low points of the chart, or a certain period of the chart. same holds true for trendlines. whereas, lines can only be call S/R lines when there are multiple tests/retests of those lines. FYI: many low budget chart tools doesn't include fibs, gann, wave, b/c those are harder to implement, compare to a tool that allows users to draw simple lines. if you know anything about windows gui programming, you can allow users to click two points to draw a line with only 20-30lines of additional c code.
"big/smart money" are the trends! they test the water to see if other "smart money" will climb onboard. while doing so, shake out other unfaithful traders/investers, that might go against them.
I love it when traders proclaim that a Perfect System of trading does not exist. These are the same individuals that are in a constant state of flux studying the thoughts and Methods of others and never bothering to study or verify the Market on their own and come to their own conclusions. They are sheep choosing to follow what is available instead of trying to find that which has not been seen. Fellow traders a perfect system does exsist. An exact science of trading is out there to be traded. Elliott was probably the closest to figuring it out but he still couldn't see the forest for the trees. You want perfection . . . think about the "Wave" or "Cycles". Now disregard any pattern other than the obvious and what is "perfect" in a "Wave" or "Cycle". I have just given you the foundation of the ONLY thing perfect in every Market. That bit of information cost me 2 years . . . your welcome. Now take that information and build a perfect trading system from a perfect foundation.
lilboy..... Don't mean to be cruel or hurt your feelings, but if you really, really want to make money in the stock market, forget everything you think you know. Study charts for a few years.
yes bsam, i've been studying charts for a while... still working on it. sounds like your reply was a bit off topic from my post. i was defining terms in a general sense.
BSAM . . . Absolutely nothing . . . I participate in free forums to get traders to start thinking for themselves. I want traders to start looking at the Market without being tainted by other's Methodology. I teach at a college level and get my satisfaction from seeing people use their brains for a change. Trusting themselves and not others conclusions.
Sounds honorable enough. Are you not compensated in any way by logical market trends? You seem to be coming on quite forcefully for someone who registered on 5-11-2004.
You may want to look at the file I wrote on trendlines. As to an "exhaustive study", I've been using them for 15 years now and have a pretty good idea of what they are and what they are supposed to do. If you want to believe that TLs provide S/R, nobody can stop you. But that doesn't make it so.