An indicator that gives the S&R?
- Thread starter Traber
- Start date
imagine if u were playing ping pong and u had to take the time to read an indicator instead of watching the ball,how would u do? The indicators are secondary to what u see happening,they are the big picture and u are just the little dot in the 4th row with glasses in jersey 51,read the trendlines first,thats your s and r,then worry about the micro stuff later or never, if u learn to trade off of all these indicators,u will make some money ,if u learn to trade without them u will make a lot more,u just need to know the major numbers and play it from there ,watch for a year if u have to,don't be anxious to trade,it's only fun if u win.
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Sort of like seams of synchronicity? I prefer dissonance and change like when then the smart$ decides to disagree with what the herd is doing. I'm quite content to let someone else go searching for that mythical, mystical essence of whatever and create the perfect indicator. There are very concrete prices which day in and day out provide useful points of reference, dare I say price action, which can be used to advantage when one knows what to do with them. Might I suggest a little read of George Douglass Taylor to begin with.
lj
Sort of like seams of synchronicity? I prefer dissonance and change like when then the smart$ decides to disagree with what the herd is doing. I'm quite content to let someone else go searching for that mythical, mystical essence of whatever and create the perfect indicator. There are very concrete prices which day in and day out provide useful points of reference, dare I say price action, which can be used to advantage when one knows what to do with them. Might I suggest a little read of George Douglass Taylor to begin with.
lj
Thatâs been my experience as well. If I may piggyback off your reply, please allow me to clarify further for those scratching their heads regarding our statements. If the goal is to truly become a master of your trade entries and exits, rather than seeking and then blindly following an indicator with subjective inputs, plotting OHC/3 or assorted type formulas, marking superficial percentage levels, or other like analogous modus operandi, instead educate yourself as to why support and resistance areas exist and what transpires between buyers and sellers to create them. Only then will you be able to precisely and skillfully identify veritable areas of support and resistance, their strength, and scale of probability as to whether they will maintain their strength or break down.
In summary, donât maintain the simple mindset that supply and demand is what moves price and/or stalls price, which of course, is true. Instead, break it down further and ask yourself why prior buyers are now selling at a certain level, or why prior sellers are now buying at a certain price level. In other words, why are there a significant number of buyers and sellers now reversing roles at a distinct level of price? The answer lies in the psychology of the players, not the fundamentals of the market, and itâs this psychology that creates these levels of so-called resistance and support areas. The players remember these areas of price due to a number of reasons, mostly by their own previous experience at this price level. It could be that some buyers entered into the market at a certain level only to see price fall, and if price should once again reach their entry point, they simply want to exit at break even when seeing selling pressure increase. Why do they see selling pressure increase? Perhaps other buyers may have bought below the area where the first buyers did, and now want to exit with a profit when they see the increase in selling from the first buyers who now just want to break even, and then add to the mix additional sellers who see this level as a good shorting opportunity. This psychological phenomenon will stop price from moving further upward until the sellers are overtaken by buyers or vice versa. Then the cycle repeats; which is when you once again ask yourself what is causing buyers to buy at this level and where are the sellers most likely going to be. This can all be seen in price action and price action alone. Again, for clarity, I am not referring to standard boiler plate chart patterns, but rather how current price is relative to previous price.
In conclusion, the true answer to the OPâs question, regardless of popular opinion, there is no canned indicator found in common charting software that will display the true areas of price reversals. Seeking such an item is simply looking for an easy way out and you are almost guaranteed certain failure. Its human psychology that drives price and this is why technical analysis of price action works, and why many people are unable to comprehend its worth. You either take the initiative to learn to read price, or forever be two steps behind those who can. Itâs been said many times, by me and others here as well, there are three main ingredients to a successful trading system. Those items are, in order of importance: 1, Human/market psychology including all the players and yourself; 2, money management; and 3, a statistically proven systematical method of pinpointing entries, exits, and targets based on both 1 and 2. Those three items must work in complete harmony with each other for anyone to become and remain profitable beyond nickels and dimes. As such, anything else is nothing more than smoke and mirrors.
In conclusion, those who wish to disagree and want to disclose how floor pivots, fib retracements, moving averages, your grandmaâs corns, the solar system, and the myriad of other farcical methods of supposedly identifying price levels of mystical value âwork for youâ or share the classic ET standard of âif you donât know how to use themâ rhetoric and/or âjoe blow uses them with great successââ¦â¦. P&Lâs please.
st
Quote from Stealth Trader:
Thatâs been my experience as well. If I may piggyback off your reply, please allow me to clarify further for those scratching their heads regarding our statements. If the goal is to truly become a master of your trade entries and exits, rather than seeking and then blindly following an indicator with subjective inputs, plotting OHC/3 or assorted type formulas, marking superficial percentage levels, or other like analogous modus operandi, instead educate yourself as to why support and resistance areas exist and what transpires between buyers and sellers to create them. Only then will you be able to precisely and skillfully identify veritable areas of support and resistance, their strength, and scale of probability as to whether they will maintain their strength or break down.
In summary, donât maintain the simple mindset that supply and demand is what moves price and/or stalls price, which of course, is true. Instead, break it down further and ask yourself why prior buyers are now selling at a certain level, or why prior sellers are now buying at a certain price level. In other words, why are there a significant number of buyers and sellers now reversing roles at a distinct level of price? The answer lies in the psychology of the players, not the fundamentals of the market, and itâs this psychology that creates these levels of so-called resistance and support areas. The players remember these areas of price due to a number of reasons, mostly by their own previous experience at this price level. It could be that some buyers entered into the market at a certain level only to see price fall, and if price should once again reach their entry point, they simply want to exit at break even when seeing selling pressure increase. Why do they see selling pressure increase? Perhaps other buyers may have bought below the area where the first buyers did, and now want to exit with a profit when they see the increase in selling from the first buyers who now just want to break even, and then add to the mix additional sellers who see this level as a good shorting opportunity. This psychological phenomenon will stop price from moving further upward until the sellers are overtaken by buyers or vice versa. Then the cycle repeats; which is when you once again ask yourself what is causing buyers to buy at this level and where are the sellers most likely going to be. This can all be seen in price action and price action alone. Again, for clarity, I am not referring to standard boiler plate chart patterns, but rather how current price is relative to previous price.
In conclusion, the true answer to the OPâs question, regardless of popular opinion, there is no canned indicator found in common charting software that will display the true areas of price reversals. Seeking such an item is simply looking for an easy way out and you are almost guaranteed certain failure. Its human psychology that drives price and this is why technical analysis of price action works, and why many people are unable to comprehend its worth. You either take the initiative to learn to read price, or forever be two steps behind those who can. Itâs been said many times, by me and others here as well, there are three main ingredients to a successful trading system. Those items are, in order of importance: 1, Human/market psychology including all the players and yourself; 2, money management; and 3, a statistically proven systematical method of pinpointing entries, exits, and targets based on both 1 and 2. Those three items must work in complete harmony with each other for anyone to become and remain profitable beyond nickels and dimes. As such, anything else is nothing more than smoke and mirrors.
In conclusion, those who wish to disagree and want to disclose how floor pivots, fib retracements, moving averages, your grandmaâs corns, the solar system, and the myriad of other farcical methods of supposedly identifying price levels of mystical value âwork for youâ or share the classic ET standard of âif you donât know how to use themâ rhetoric and/or âjoe blow uses them with great successââ¦â¦. P&Lâs please.
st
Sorry but most of this sounds like a lot of zen voodoo.
Thereâs no need to apologize, a vast majority of self-proclaimed traders share in your belief. But then again, the overwhelming majority of these same people also fail. Know what I mean vern?
st