Support and resistance are technical terms which explain areas of price where major buyers/sellers see opportunity. Also these areas aren’t exact price points, rather they are ranges of areas and they also gravitate to other price areas over time, these areas are never constant forever, although if you see price headed towards support that stems from decades ago it should hold.
From support to resistance
- Thread starter trader1974
- Start date
I disagree with most of what you write here.
S/R are previous turning points or resting points on price, not "where major buyers/sellers see opportunity".
And they are not 'range areas'.
Also, "although if you see price headed towards support that stems from decades ago it should hold."
Is not true.
In my opinion.
padutrader,
Do you back test or forward test and prove profitablity/edge with your way of trading?
your living will be vague exactly as your question
what do you want to back test about trend...
you need to test strategies and methods......i do not use both
i only follow trends.......it may be a 8 bar trend or 800..that is a different matter....trends trend and they then stop and then they trend again.
what is there to back test?
What time frames do you watch for your trading?
change is the only constant.
a support or resistance is a point where market tests...
if a market repeatedly test an area, that area is validated and a S/R is marked.
this is a trap.
because, if a trend is really strong, it should not be repeatedly testing any area...... it should be moving continuously away.
so once an S/R is formed the trend is weakened
i am not sure who this question is addressed to me or simplemelike