By all means, this will take you to all of the posts ever made under Jack Hershey. http://www.elitetrader.com/vb/searc...=3232377&sortby=lastpost&sortorder=descending Report back to us when you have done a complete report about what the masses of experienced ET traders think of Jack... Any other conclusion than "unknowing crackpot" means you did not really read it
The question you asked in the OP is this: "The question I have is this: when do you regard a support (or resistance if you are looking to go short) is broken and give up on it and look for another opportunity away from the immediate market conditions." Recently a person posted a trendline that was broken and an FBO followed. It was on a chart that also demonstrated the R and S of the instrument. We saw the chart poster does not know what S and R are as well. We know you are inexperienced and unfamiliar with mostly everything. This is probably why you titled the thread as you did and why you formulated your question as you did. Trading R and S is easy. The formation on that posted chart was at R and five trades could have been called very easily. It is a very common formation and most people can trade it quite comfortably if they are able to think. With regard to R and S they are terrific places to do a lot of different kinds of trades. BO of R or S to new levels of R or S respectively may be what you are asking about. Your parenthetical comment: "(or resistance if you are looking to go short)" could mean to expert traders that you want to learn how to trade price bouncing short off resistance once price touches R. Some of the favorite trades of some people are FBO's. Failure to BreakOut's are price moves that DO BO temporaily and then retrace back into the prior R/S range. A lot of people have written on the lagging characterisitc of R and S whereby an R becomes an S or, the alternative, an S becomes and R. This is sometimes called even harmonic trading. I would say about half of the posters who are still trying to learn (who have posted in this thread) should give up trading. The OCD's who post here have given up trading and are very angry people as you found out. Trading is a very very logical enterprise. And success in trading depends on knowing how markets work. That is why when I first responded to you I suggested the exits to the entries I discussed. Trading R and S is a two sided coin: the entry and the successful exit. Look at trading on R and entering to take the BO. The next occurence is the fork in the road regarding an FBO or not an FBO; you are screwed at this fork right now. Suppose no FBO comes into the picture, do you know what to do to handle the unfoldment after a BO of R? No you do not. What is the next successful trade after a breakout of R? You do not know. In your posts you have succeeded in explained to your readers that you know little or nothing about how markets operate. Do you realize where you are heading? That is, do you know what direction a person who thinks as you do, winds up? The Obsesive Compulsive Disorder detractors in this thread have wound up where they are out of their frustration and anger of not being able to use their minds to be able to trade. Another way to say it is they are severely fucked up mentally. That is not going to change for them; they are trapped in a loop from which they will not emerge. As you see most people contributing to this thread cannot ID an S or and R. You cannot either if you are accepting the illustrations posted here. One thing you might consider is the relationship of P and V the variables of the market. If you do, you can figure out why trends continue and why they end. Asking questions about R and S is futile if you can't ID R or S in terms of the variables of the market. Your question stinks.
Ha....are you getting us prepped for what may come down the pipe in the next couple days? I like seeing a FBO followed by a nice mean reversion trade back to the middle and then to the other side of the lateral range. The last unemployment # comes to mind. Hoping we can finally get a FBO out of R followed by a breakdown through S....the 1080 level. Isnt it time for the lid to blow off of the stew?
s/r is broken when price penetrates that line, returns for a retest, and price fails to recover that line.
Because I still TRADE for a living (40% ROI this year), I don't have time to search through every post an ET member makes, searching for fuel to flame. I'm glad your trading prowess has brought you to such a level of financial independence that you have the time to engage in this thrilling pursuit.
that is definitely the case sometimes. the other two examples are ... 1. when price turns without a retest 2. when price retests more than once apart from these additional two cases I thought your post was excellent