Actually, they're not. Scalpers are looking at something different than those who trade 1m charts who are looking at something different than those who trade 5m or 15m or hourly charts who are looking at something different from those who trade daily and weekly charts. So the more important question is who do you want to trade with? Scalpers who are looking at the last swing low on a tick chart or T&S display? Or longer-term traders who are focused on the previous day's/week's low and high?
well, trade signal is what it is - just a signal: "buy" or "sell" it, in reality, generated by the trading method market analyses in fact is part of the trading method correct, but trader is concern only whith the ones, which he thinks are correct, those that are part of his analyses disagree, as i said above there is only one way that counts - the one that in one's method in life everything is subjective, until it becomes part of the method, then it becomes objective we noticed that, as we noticed that different traders use different methods (if any at all) the question is which method (and trader) is more effective (i.e correct in his vision of s/r)...
===iamnewuser911 said: They work because people are looking at the same thing. lcranston Actually, they're not.==== well, they may be looking at the same thing, but through the prisms of different methods - i.e different time-frame, different trends, different positions of stops, different rules of determining which S/R is in play etc etc...
I don't understand the value of this discussion. Instead of discussing who is doing what why, it is better to put that energy in your tradeplan. I don't give a sh* who is doing what why, I only care about my profits. The markets show the global result of who is doing what why. And that's all that matters to me. And this discussion of who is doing what why will never have a winner. Millions of people have millions of reasons for taking millions of different decisions. The market does not only exist from S/R traders, there are people with other strategies too. But you only speak about S/R. Do you think that only S/R moves the market??? If trendfollowers trade big volumes they will ruin the S/R levels if these S/R traders have a smaller volume. qxr1011 was right when he said: " they may be looking at the same thing, but through the prisms of different methods - i.e different time-frame, different trends, different positions of stops, different rules of determining which S/R is in play etc etc..."
Okay, let's try the simple thought experiment here: if support and resistance worked *all* the time then price would range *all* the time and never actually break out of it. We know that's not how markets work - ergo a given support and resistance will eventually be broken (for whatever reason). Don't confuse "more often than not" with "always." If you want always, you don't want this game.
imho it definitely affects it S/R imho is part of the trend creation. S/R, as long as the trend itself, are there regardless of the fact if people aware about them or not. Like many other patterns in the market and beyond it. Without getting in the nature and the reasons of these patterns we nevertheless should definitely concentrate on how to determine when and how the pattern develops to exploit it and capitalize on it. Frustration of most traders should be understood , because while they try to determine and approach S/R based on classical TA, they forgetting (or do not know one important thing) - classical TA does not work !
correct from that we should come to the following: one should determine which S/R to use and when monumental task... but who said it will be easy
%% Thanks for the question- i am new91; NO, because 5 minutes in NOise. In other words ''. make Money Selling Stocks Short, by William o Neil'' BAC is charted as a sell,+ 10 year chart is a sell, 2 year chart is a sell. 5 minutes is noise. In an election year, you may want more longs??NOT that you would want BAC AS A LONG[ lol.] NOT A PREDICTION [educational trend comment]- ONE YEAR BAC is up..... Wisdom is profitable to direct.
Depends on what you mean by "same thing". The longer-term trader isn't going to care about a tick chart, nor is a scalper going to care about last week's high, but they are both looking at "support and resistance" within the context of their schema. Without getting into the metaphysics of support and resistance, what one looks at, again, depends on whom he wants to trade with. If he wants to trade with scalpers, he's going to be looking at one sort of support and resistance. If he wants to trade with someone with a longer-term view than seconds or minutes, he's going to look elsewhere for support and resistance.