Discussion in 'Technical Analysis' started by tyler19, Aug 30, 2006.
How Do I find the support and resistance zone?
When price stops and reverses or goes sideways, that's s/r.
The highest price of the prior 10 days is the 10 day resistance level. The lowest price of the prior 20 days is the 20 day support level. Notice there is no absolute inherent single resistance or support level. Everything changes as the number of data points change. Some traders write of moving average support levels also. It is possible to have support or resistance levels created by mathematical calculations such as Fibonacci levels, Bollinger Bands or market measurements.
This probably means support and resistance levels are another optical illusion that humans see when looking at graphs or tables on numbers. Human brains see patterns everywhere. I graph random numbers and see support or resistance levels. Random numbers can not have support or resistance levels. Random number patterns that I recognize are an illusion.
I've been active on t2w for over a month, with a couple of hundred posts to my name, all in search for a consistently profitable strategy but have yet to find anything useful. As you're refering to a thread on t2w I have to react that it's not going to be that easy. Looking for answers I've only gotten more questions left unanswered.
This doesn't mean the link you're providing isn't useful, but I think what you'll find in most books, study guides and online tutoring is that any principle is almost always accompanied by a very clear example. Trendline? Sure, put up a chart where price trends nicely up, pullbacks on low volume, and continues up. In reality however, these clean moves don't appear that often and the wannabe trader is left out there wandering where to find the patterns that appear in all those books, guides, forums,...
Just a critical sound of my part. Feel free to comment.
I've been following your progress on T2W ever since I recommended the thread to you and have been amazed at your reluctance to assume any responsibility for your own lack of progress. You've been getting extraordinary (and free) advice from someone who's been making a living as a professional trader for nearly twenty years yet doing little other than complain about how no one is willing to take you by the hand, stroke you, feed you, provide you with a setup, tell you where to enter and exit, etc.
Here it is a month later and yet you're back where you started: "here is what I did yesterday; tell me what I did wrong". This is not how a profitable strategy is created. A strategy has to be tested. It can be backtested, which you have refused to do and continue to refuse to do, or it can be tested in real time, which can and probably will take months, and you don't want to do that, either. It's too hard. It's too confusing.
You appear to be playing a combination of Poor Li'l Ol' Me and Look How Hard I've Tried. But until you begin to adopt a professional attitude toward your own growth and stop shifting the responsibility for your lack of progress on others, it's unlikely that you will make any appreciable progress in the future. I suggest you swallow a very large slice of humble pie.
The thread looks OK to me. Monthly and quarterly charts help me to find the most important spots. New traders often have a problem with patience. Imagine having to go a whole month without finding your way in this bidness. Took me years just to figure out that I have years more to go.
Often? How 'bout "always"?
How do you know when supply will be greater than demand in for example daily timeframe?
Weak hands.. volume... smart money...dumb money..
In advance? You don't. If this is in reference to S/R, plot the S/R in advance as part of your pre-market planning, then see how price acts when it approaches your R level. Is it hesitant? tentative? Do the bars get smaller and smaller? Or does it blast through?
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