Buying at Support or Buying at Resistance

Thanks Double top. I have only been trading a couple years and really like the idea of trading supply and demand. I want to learn more about this trading style and see other peoples ideas/thoughts before I throw down a bunch of money.
 
IMO there is more to the question and not a one size fits all answer. Has this resistance been tested once , or 2-3-4-5 times? The odds change depending on the number of tests of a level, orders at that level ect ect.
 
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If you are smart money you might buy at resistance since you have the power to break it. Also, a report might come out for example that the company is being bought out, so you could buy at resistance.

However, if you are doing technical analysis, you could buy a break of resistance but normally if I am not making stupid mistakes I don't buy at resistance.
 
Dinosaur_Supervisor said:
If you're in a down trend and buying "resistance", it's not a resistance level, it's a support level. It's only "resistance" if price is coming from below.
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I didn't say to buy resistance in a down trend. I said that resistance levels are most likely great selling points in a down trend....pretty much dismissing entirely the idea of buying at resistance. Also, there are resistance levels in down trends because markets consolidate in order to resume it's trend.
 
Money Trust said:
I didn't say to buy resistance in a down trend. I said that resistance levels are most likely great selling points in a down trend....pretty much dismissing entirely the idea of buying at resistance. Also, there are resistance levels in down trends because markets consolidate in order to resume it's trend.
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But they can also consolidate before a reversion. I don't remember Thomas Bukowski statistics on this, I believe it's more likely to resume the previous trend, but reversion is always possible.

Anyway, I believe you mean a support level becoming resistance after it's broken.
 
Dinosaur_Supervisor said:
But they can also consolidate before a reversion. I don't remember Thomas Bukowski statistics on this, I believe it's more likely to resume the previous trend, but reversion is always possible.

Anyway, I believe you mean a support level becoming resistance after it's broken.
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No, I mean a resistance level in a small trading range during a down trend.
 
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