A Primer on Support and Resistance

L

lcranston

The following is an extremely basic introduction to support and resistance. I've had it for years and used it for years, largely because it's indicator-free. And it's brief. And simple. I post it here because of the various questions about and discussions of support and resistance and because one needn't know anything at all about indicators in order to understand it. As posted elsewhere, "support" is an area where buying pressure overwhelms selling pressure. More specifically, support is the zone or level at which those who have enough money to make a difference are willing to show their support by retarding, halting, and reversing the decline by buying. "Resistance" is an area where selling pressure overwhelms buying pressure. More specifically, resistance is the zone or level at which those who have enough money to make a difference attempt to retard, halt, and reverse a rise by selling or shorting.

And that's it.

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These are not Support & Resistance Levels they are only Small Channels - In which will lead to Support & Resistance Levels once the Price Breakouts of the Small Channel Range. Support & Resistance Levels are where the Price is at the Floor or the Ceiling of A Derivative meaning the Low Bar or High Bar of Price - And the Price is than Expected to travel a lot further within the opposite direction within the foreseeable future. As in there has been A Change In Price Direction Mate over the Monthly Chart Time Frame. Try looking at the Bigger Picture when establishing that A Support or Resistance Area actually exists - And not just a little Rangeing Channel of interfere means. This will never support your trading biases.
 
peter matthew matty said:
These are not Support & Resistance Levels they are only Small Channels - In which will lead to Support & Resistance Levels once the Price Breakouts of the Small Channel Range. Support & Resistance Levels are where the Price is at the Floor or the Ceiling of A Derivative meaning the Low Bar or High Bar of Price - And the Price is than Expected to travel a lot further within the opposite direction within the foreseeable future. As in there has been A Change In Price Direction Mate over the Monthly Chart Time Frame. Try looking at the Bigger Picture when establishing that A Support or Resistance Area actually exists - And not just a little Rangeing Channel of interfere means. This will never support your trading biases.
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Where do you see the timeframe on his charts?
 
Subjective interpretation of support/resistance is child’s play. Done right, it must be quantified using ranges within a time context. Catalysts can also be factored in regardless of timeframe. This can only be done with brain power, experience, and trial/error. Pay the due to get a clue :)
 
peter matthew matty said:
Did I say anything about timeframe Bud I can see that those diagrams are not at anything near Support or Resistance Levels and are just at channel trading range.
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“ As in there has been A Change In Price Direction Mate over the Monthly Chart Time Frame. Try looking at the Bigger Picture when establishing that A Support or Resistance Area actually exists - And not just a little Rangeing Channel of interfere means. This will never support your trading biases.”

Tough to understand your writing in general. I’ll assume you had good intentions.
 
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