S/R Line
- Thread starter misterkel
- Start date
IMO, day-traders should ignore all FA (including Trump tweets....timing not predictable) and trade the charts.
IMO, swing-traders will get added value by using the FA with TA.
Just my OPINION, not facts.
So true, unfortunately. Every day now is either trade war/brexit/global slowdown improves or dampens global mood.
With regard to the topic, there is no making it weaker or stronger. Statistically speaking, S&R are meant to be broken, as was said before. It's only a matter of time. But that is of no concern to us traders, because the individual tests are not codependent unless they are relatively close to one another (enough to be considered part of a same economic context and a same overall market move).
What is relevant is the present move, and how strong or weak it is relative to the S&R. Also, let me remind you even that is subject to debate and is contingent on other forces.
If price approaches one of these areas on low volume, a major player like a bank or hedge fund can usually push it beyond the area - since there isn't much volume to the opposite side. In the same manner, a strong move towards a resistance may be met with sudden negative news, which then lead to a sell-off.
When it comes to support or resistance, it is the quality and not the quantity of the move(s)/tests that matters.
Trump is the Issue, DAX in the am is the solution while he's asleep.
It's get in, get to +6 think crap take it or stick it out then bang too late -6 SL hit and market closed -50 AGAIN!!!
Why does the market never ever explode in your direction ?? EVER, like EVER EVER, just once universe give me a break FFS!!
It's get in, get to +6 think crap take it or stick it out then bang too late -6 SL hit and market closed -50 AGAIN!!!
Why does the market never ever explode in your direction ?? EVER, like EVER EVER, just once universe give me a break FFS!!
With that kind of perfect record, you should partner up with somebody who'll take the other side at 10x the volume. Instant millionaires, the pair of you.
(I love two-sided markets.)
Agreed, often consider, 2 weeks ago, my average trade time was around 2mins so yeah.
Millionaire for them, they'd never pay up, if they did the universe would get confused and implode.
Also interestingly, loads of demo trades last week and not 1 went crazy, guarantee live trade tomorrow, cursed!!
Hahahahahha I know the feeling. My humble suggestion is add a volume analysis tool (simple volume bars will do) and once the markets start to go sideways, try to gage if volume/activity is increasing on the buying side (accumulation) or selling side (distribution). When volatility comes to a halt, it's usually one of these two things, which precede a relevant move to the next trading range. If it's accumulation, it'll likely move up and if it's distribution, likely down.
IMO S/R levels are left over orders that need to be filled AND predatory traders that know how to read levels front running those orders for quick profits. The more times we test the level the more likely we are to exhaust and to move through to the next level beyond. There are times when levels refresh and are valid again for 2nd tests but that's for you to do that homework and figure out.