Are Your S/R Lines Better Than Random?
- Thread starter Savoy
- Start date
I really like Grimes' blend of discretion and thorough mathematical common sense. That video's somewhat famous. My take-away from that is that few (not zero) lines hold actionable information and that in the end they're just hints to help the trader execute an idea he already has.
Most importantly, it makes a case for me that if price happens to bounce off one of (too many) lines, especially something derived like a "fib", it's not a convincing argument for a trend reversal, so I should be patient and think "pullback". An attempt to break through a recent high/low which then fails, however...
I think I've seen a Lifetime movie that started this way.
Draw horizontal lines somewhat randomly on a chart and...
there are periods where price:
And then at the end of video, this suggestion:
"repeat this exercise... have a friend draw the lines... this is worth a lot of your focus and attention"
Disagree.
there are periods where price:
- does not cross or touch a line;
- crosses a line seemingly without interaction;
- seemingly interacts with or around a line.
And then at the end of video, this suggestion:
"repeat this exercise... have a friend draw the lines... this is worth a lot of your focus and attention"
Disagree.
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Draw some random lines onto a chart.......
After the Fact you'll only see where the random lines worked and price reversed, your brain will ignore the lines which price went straight through.
Live ofcourse, no way to know which will bounce or reverse so sadly trading of S/R lines is kinda pointless.
Properly drawn, might at times slightly out perform randomly drawn, but not by much, at times it will also under perform so likely comes out pretty much the same.
After the Fact you'll only see where the random lines worked and price reversed, your brain will ignore the lines which price went straight through.
Live ofcourse, no way to know which will bounce or reverse so sadly trading of S/R lines is kinda pointless.
Properly drawn, might at times slightly out perform randomly drawn, but not by much, at times it will also under perform so likely comes out pretty much the same.
Are Your S/R Lines Better Than Random?
Way better..., and that video is B/S (imo of course)
All but one line came off as random
None of the discussion involved what was important
Reminds me of the adage - draw enough lines.., something is bound to work
But then..., what the hell do I know anyway
RN
Way better..., and that video is B/S (imo of course)
All but one line came off as random
None of the discussion involved what was important
Reminds me of the adage - draw enough lines.., something is bound to work
But then..., what the hell do I know anyway
RN
so, you think the important part is that you can't rely on just SR basically...
Thank you Savoy for some interesting thought & clear video!
I tried for my self just doing 1 day at a time with just 2-4 lines & kept on repeating & found it very intriguing. So much so I am going to forward demo as a side project this week.
It just lifts the burdon of trying to get right where to choose & how to draw S&R lines. The conventional wisdom of learning, studying & practicing for a long time will in most cases improve ones skill may just be an illusion. Instead this way of knowing ahead of time that the lines have no reason/past value/significance frees the mind to focus on the present, the flow, the intent.
In the same way as using the flipping of a coin to determine entry direction focuses the trader to concentrate on m/m skills.
Liberating
I tried for my self just doing 1 day at a time with just 2-4 lines & kept on repeating & found it very intriguing. So much so I am going to forward demo as a side project this week.
It just lifts the burdon of trying to get right where to choose & how to draw S&R lines. The conventional wisdom of learning, studying & practicing for a long time will in most cases improve ones skill may just be an illusion. Instead this way of knowing ahead of time that the lines have no reason/past value/significance frees the mind to focus on the present, the flow, the intent.
In the same way as using the flipping of a coin to determine entry direction focuses the trader to concentrate on m/m skills.
Liberating
I find it curious what.., and how - you derived what it is..., I think - but not curious enough to ask
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Rely on just S&R for what
predicting
low risk entries
contextualizing PA
measuring / gauging
breach of which would an invalidation of a signal / trade breaking down
respect of which would be a trade-able signal
breach of which would also be a trade-able signal
changing a flat tire
feeding the dog
decorating the Christmas tree (which I have yet to do)
the price of tea in china perhaps
S&R - whether it a specific price..., or range - exist
They were made intentionally..., they exist intentionally..., they are used intentionally..., they cease intentionally..., they are reverted to the other - intentionally
To ignore them would be myopic
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Many whatevers are intentionally made to appear as S or R
There's a vast difference in the real ones
The real ones can be leaned on..., the orchestrated ones are traps
RN
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