S/R
- Thread starter sulong
- Start date
<<Given the plummet, supply is more likely to be found at the LRL on the 23rd than the supply line, which is still tentative.>>
Yes it did .Very good.Wouldn't have realised that if you hadn't pointed it out.
Yes it did .Very good.Wouldn't have realised that if you hadn't pointed it out.
It's become a habit. I learned a long time ago that every line is nothing more than an application that is the result of the chartist's perception. It's not exactly imaginary, but it's just what it is: a line.
Price, on the other hand, exists independently of perception. The price paid for any given point is the price paid. How the chartist perceives it or what he thinks about it is irrelevant. If you've ever read Magee, it's the distinction he makes between the map and the territory. The price is the territory. The line is a map.
Therefore, while I still use lines, the first thing I look for is important price features, particularly reaction highs and lows and the volume that accompanies them. That's really where the rubber meets the road.
DB
I too rarely use my S3/R3 levels, however when price decides to trade outside of s/r levels 1 & 2, I immediately focus my attention on the next midpoint & S3/R3 level as a potential stopping point (theyâre on my spread sheet just in case).
From my personal experience, when the previous days range is relatively tight, letâs say between 3 â 5 points, and during the current session price abruptly decides to trade outside of s/r levels 1 & 2 you can bank on using S3/R3. For instance, today is a good example (see chart).
This is just my observation based on my personal experience!!!