ok, so for intraday trading, how long do you wait after market opens to start drawing S/R? I am thinking that they should be drawn as they happen then trade according to how those lines get tested. I am new to S/R, so it's obvious that we will have plenty of horizontal lines on our charts. How do we place importance on each of those lines? volume?
SusanaDT, Don't forget, there is no shame in asking Magna to delete specific off topic posts as you see fit to maintain the integrity of your journal.
It's valid because the double-bottom or double-top pattern (including the pipe or the tweezer) usually occurs at or near the S/R or the trendline. Hence, my underappreciation for many technical patterns (eg. wedge, triangle, etc). Before answering your question, let me first ask you something. When you look at a chart, do you usually take a vertical view as if you were looking at it from the side? I too did this for many years until that fateful day when I realized that it's so much better to have an "aerial" view of the chart. Bring up a candlestick chart. Now look at each candle as a tug-of-war between the bulls and bears...as if you were looking down from a helicopter. Isn't the visual much easier on the eyes? Now to your question. No, you don't wait until the market opens to draw the S/R because you'll be using the S/R drawn from the previous day unless the price penetrates out of the range and establishes a new S/R. But keep in mind that there are many minor S/R within the larger S/R. Whether it's fortunate or not, many traders believes only the S/R with the outer extreme is considered as the legit S/R. For example, the intraday high vs. the intraday low. However, I beg to differ. Most of the time, you will visit those intraday extremes only once per day whereas you'll revisit minor S/R more often than you care to admit. These minor S/R is what really constitute those two extreme S/R. I hope that makes sense to you and good luck.
Hey everyone. Supp and res will be pre determined until they're not. Be aware of higher tf's as supp and res have more relevance. For example your trading 5 min tf, you go long at support, price is180 but on the 4hr chart you have a major res level at 190 and all the supp res traders are selling, you see?
This thread is proving a VERY VALUABLE POINT and the point is exactly what Susana was trying to avoid by her desire to HELP other traders. Why is it so hard to KISS? What makes it so easy to complicate KISS? Why does everyone (almost) find a desire to muddy the waters with trash? I mean come on, REREAD what the thread is supposed to be about. The very wording: The Price Action Journal" should turn off 99% of traders that still are in the minor leagues. Lets do Susana a favor and get back in the groove.I mean today is a trading day;;;;;;;; This is where her Journal cuts the mustard .......PRICE ACTION...........Learn it or take your "TINKER TOYS" and "asteroids & Pong" computer away.
I respectfully choose to take the glass half-empty view of your statement. S/R and/or trendlines require hindsight (previous bars) to produce with any accuracy. The tweezer itself is price action capable of setting a foundation for S/R and/or trendline analysis. If you are fortunate enough to have predetermined S/R and/or trendlines and this action occurs at or near those predetermined levels that provides some level of confirmation. Tweezer is easily recognized, easily risk-managed and occurs regularly, but not necessarily frequently, on all time frames. On fast charts where only seconds to minutes are available to react, such as the case in a portion of my trading, tweezer recognition is useful. Osorico
What an interesting morning... the market gods must have been reading this thread because Tweezers were all over the place this morning and gave me all the info I needed to call it a day. Attached is an annotated 2-minute YM chart... what I saw, and how I played. FWIW, I'm on vacation and had no intent of trading a full day. Cheers, Osorico
Quick question for the guys using a "3 bar reversal" how are you counting the bars? IOW which bar is bar one? TIA
If I understood right bar one is the bar before the low (bar 2), hence, you only count it at hindsight and not in real time. I'll post my chart of the ES later with some examples