Or because they're random? I've seen people with so many lines on their chart that price simply doesn't have a choice but to bump into one of them.
Support & Resistance? Why do some work and some not? S turned to R - or vise versa Incorrect context - causing one to "lean" against the wrong one..., or..., identify one as the other..., or..., identify something as S or R - that doesn't actually exist Overall bias not correctly identified *up.., one should reasonably expect R to fail..., * down.., one should reasonably expect S to fail - in chop both should fail..., in a PB - one should fail.., then hold..., then the other fail Mkt environment actually changed And let's face it - price orchestration =============== Regardless..., when this happens - and it does to all of us for a variety of reasons - time to put on the ole trader cap and act accordingly - which means drop one's expectation(s) and get on board with price Simply random thoughts RN
Because there are billions of combinations of signals, very few high probability, and some whales manage to move the trend using their strategy. You put yourself in the right place, keep a level head, and click the button when it's your turn. You miss it you have to wait, but most don't, so they chase the trade and lose their capital. The markets are fat-tailed loaded, one persons noise is another persons perfect signal, you do your job, they do theirs, and you have to make sure you have the confidence to come out on top! They all work at some point, it just depends how long you wait for x, how much y occurs for that particular setup, then of course you have z which is your confidence and it all looks like it's random!
Support & Resistance? Why do some work and some not?" You can debate these kind of things till the end of time, but it's up to the trader...to...See the Light; Trading is part art, part science -- there really is nothing more to say beyond that, or to teach or explain. I personally like to think of Support/Resistance levels...as a fight...between two teams: Good and Evil, God and the Devil. The Devil trying to rise, vs God trying to push it down.
Which two MA is that? What's the use of putting 2 so similar together? It seems that this MA is a very good guage or filter on whether the trade will work out or not or whether the direction you are taking is right. Do you use this on that specific time frame only? I trade the hourly, with entries on m5/1. Edit: nvm I found it, 18SMA. I still have a few questions. 1) why 18? 2) do you only use this on scalping lower time frame? (I trade hourly)
Learn to spot the horizontal lines that matter, diagonals oscillate too much in price based on which TF you use providing tremendous oscillation among traders looking at, supposedly, the same thing.
I'd like to add something to your fight analogy. I see a fight between two teams and one of the teams is going to win in the end, but as always there will be individual players on both sides that will feel like losers...beat up...injured...or benched!
draw any line over two axes.. and you will encounter support or resistance structure within that line. The more consolidative the line is, less variance and deviation over time. ie/./. the worst market to trade. Positive and negative correlation lines are best statistically to apply S/R trades. Ultimately the money is within the math of the trade.
They are 17/18, software I use to show others charts of signals or examples, I can't thicken the lines, so I use 17/18, bet you thought it was something useful, grin. I use multiple timeframes of whatever works well. I trade off 60 minute but risk is $500 but going for $1,000 plus, whereas trading off 2 minute charts it is much smaller risk and targets. I use 18 as when backtesting it works, and any from 14 to 22 sma's work, but 18 gave me smallest draw down of losing trades by 1% over others, I use 18 from monthlies to 30 second charts, I recall I started in 1978 with 21, but when home P/C came out, being tad faster works out better. I use various ways to define trend, slope, close beyond a pivot, thrust bar completely above the 18sma. I don't like taking an indicator below or above the chart to define trend cause many indicators are either late or too early to the party. I have used other periods of sma depending on strength of some strong trends to have ability to get into them with a tight stop. It is those trends where it ripping at 60 degree or higher.
Exactly, I received in past a lot of charts (metals LME) from Glencore and Natexis. So many lines that they were always right. The problem was that it was only clear in hindsight which line was the correct one. I was shocked that these "professionals" made that kind of charts. Threw them instantly in the garbage.