Support / Resistance Study by FED

Discussion in 'Technical Analysis' started by wrbtrader, Sep 10, 2010.

  1. wrbtrader


    Here's interesting info that was posted at another forum about an article posted by Carol Osler (senior economist) of the Federal Reserve Bank of New York in the FRBNY Economic Policy Review back in July 2000 involving technical analysis via support/resistance of Forex markets.

    However, I've seen other articles by other professionals with similar like results involving futures markets (e.g. Oil, Gold, Eurex, Treasuries and Eminis) over the past 10 years.

    Regardless to what's in the article about one form of technical analysis, I'm a strong believer that successful trading involves much more than technical analysis. Thus, to succeed, you need to have all the other ducks in line (e.g. money management, market experience, proper capitalization, discipline et cetera).

    With that said, what's your opinion about the article ???

    By the way, I'm a price action only trader that uses technical analysis but I do not use technical indicators. Also, in my opinion, support/resistance and supply/demand are key aspects within the foundation of price action only trading.


  2. What conclusions can be drawn? From a quick skim, the memory of the market is ~5 days, and support/resistance lines are most frequently at numbers ending in 0 and 5. Even though the article is 10 years old, this is probably still valid. If not entirely true, it is definitely true that there are key numbers like 1000 for the S&P 500 index that act as support/resistance.