Support and Resistance

Discussion in 'Technical Analysis' started by tyler19, Aug 30, 2006.

  1. Don't forget guys that there are different types of s/r levels or zones.

    Some involve plotting them before the open and others involve their development based upon current market info after the open while others involve both.

    Some involve mathmatical equations while others involve volume analysis while others involve candlestick analysis while others involve volatility analysis and while another involves wide range bodies (WRB) analysis (my preference) while others involve any combo of what I've mentioned above.

    In addition, support and resistance analysis is not a strategy all by itself and will give us tons of difficulties if we approach it as such (a strategy all by itself).

    Instead, s/r analysis involves many variables and these variables must be discussed, studied, learned as you are learning s/r analysis as a whole.

    Further, because of all those variables I think one of the best approaches to applying s/r analysis is to already have a strategy (entry rules, exit rules, money management rules et cetera) and then use s/r analysis as a confirmation tool to your strategy.

    Simple example...lets pretend you have a method that involves breakouts or breakdowns from triangle patterns.

    You could only take such trades if such occurs at a s/r level or zone.

    Here's an analogy...pretend s/r analysis is like a track n field meet.

    You can't possibly learn and perform in every single event.

    Best to select one or a few events and master it so that your not walking away feeling lost.

    Therefore, instead of making general remarks about Track n Field...

    Might be more useful to talk about a specific event that your performing in that Track n Field meet.

    Last of all, if you guys want to discuss discussions of what's occurring over at T2W...

    I'm sure Baron would appreciate you guys discuss such over there or via pm only.

    Mark
    (a.k.a. NihabaAshi Japanese Candlestick term
     
    #11     Sep 1, 2006
  2. 4re

    4re

    Hey Lamont,
    I haven't seen or heard from you in a while. Things are going well in my S/R emini journal. Have you checked it out lately. I enjoyed having you visit us early on when it was just getting started. Take care and drop in sometime.

    Gary
     
    #12     Sep 1, 2006
  3. 4re

    4re

    Hope this will help you.

    Gary
     
    #13     Sep 1, 2006
  4. I'm glad it's going well, but I haven't checked it out lately. I've been going for much bigger moves than you do, so I haven't had anything to contribute. But I'm glad somebody's maintaining a "manual" S/R thread in addition to the more mechanical S/R varieties.
     
    #14     Sep 1, 2006
  5. 4re

    4re

    One of these days when I have the time to trade longer during the day I would love to go for bigger moves. I am still running the thread the same the method the same just the characters coming in are different. So far I have not had one losing week since starting the thread and just 3 days that I quit trading because of my 2 loss in one day rule. I still read all the time and continue to try an be a better trader. I have started incorporating some basic chart patterns into my thread to help some of the new traders learn how to judge when it is time to bail or hold on for a complete trade. Good to hear from you and I hope you are doing real well.

    Gary
     
    #15     Sep 1, 2006
  6. This site could be helpful if you're trading the ES ( scalpTrader )
     
    #16     Sep 1, 2006
  7. Thanks! Is price acting differently near important resistance and support?
     
    #17     Sep 2, 2006


  8. Study "Market Profile" and you will find some of the most critical s/r levels each day at key volume distribution points. I have never found any s/r levels from any other method that have the rock solid performance of MP levels.....they are quite amazing!

    Here were some of Friday's levels............

    http://www.charthub.com/images/2006/09/02/ES_317_VB.png

    http://www.charthub.com/images/2006/09/02/ES_317_VB_2.png

    Here off 1311.00 again which only made 1 point with remainder out at b/e after delta shift back to positive.........

    http://www.charthub.com/images/2006/09/02/ES_317_VB_3.png

    Here a MP level as resistance and then a level which was broken through now as support.........amazing how effective they work every day...........

    http://www.charthub.com/images/2006/09/02/ES_317_VB_4.png
     
    #18     Sep 2, 2006