There are a lot of people tauting candlesticks but if you overlay candlesticks on any variable inconsistent chart the result will be variable and inconsistent. It is scientifically impossible to extract perfect and consist data results from a pool of variable inconsistent data. Common sense and logic seem to be foreign languages in trading . . . and that is a shame.
Support and resistance Question...
- Thread starter Kastro_316
- Start date
There are a lot of people tauting candlesticks but if you overlay candlesticks on any variable inconsistent chart the result will be variable and inconsistent. It is scientifically impossible to extract perfect and consist data results from a pool of variable inconsistent data. Common sense and logic seem to be foreign languages in trading . . . and that is a shame.
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BSAM
Elite Member
Registered: Sep 1999
Posts: 630
05-11-04 08:38 PM
Oh my goodness Prof. Next thing you'll be telling me is there is no validity to candlestick charting.
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Look folks. I'm a mind reader.
You have a lot of company in believing that this is true. Unfortunately, there's only incidental evidence to support it, about the same as for Fib.
Of course, there are all sorts of ideas floating around about what support and resistance are, so a lot of heat can be generated without much light.
db......I know we are a bit at odds on this, but note that I wrote: "IF you know how to construct them".
You state that I have a lot of company in believing that this is true. That, I believe, is what helps trendlines become valid. I very strongly agree that Fibonacci levels don't hold much validity. Just my experience, but then we are all only expressing our opinions, based on our experiences.
Yes, there are all sorts of ideas around about what S/R includes. I know you would agree that there is nothing in trading that works all the time. I've found (proper) trendline construction to be a good tool to help provide guidance for stock direction. Also, bear in mind, that failure of a trendline also provides an almost equal clue as to what action one should take in regards to buy/sell activity.
How this 'new school of traders of the 22nd (!) Century' any different?
All traders have always wanted a system that was 'Perfect and Exact Consistency'; only the best traders realized that there is no Perfect system. No system is consistent in the long term.
Self discipline, trading plan and hard work is what we know that works. Its not all about the system, its about You
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Doesn't really matter if you know how to construct them or not. Unless everyone is drawing the same lines on the same charts in the same timeframe using the same bar intervals, then trendlines can't provide support or resistance.
The job of a trendline is to show the direction and strength of the trend and also to show when the strength of the trend is lessening, changing, reversing. That's sufficient.
Doesn't really matter if you know how to construct them or not.
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Ooooh yes it does! Makes all the difference in the world.
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Unless everyone is drawing the same lines on the same charts in the same timeframe using the same bar intervals, then trendlines can't provide support or resistance.
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This is just not correct, db. This is another reason there are winners and losers in the market. Apparently the "big money" knows where to properly construct them.
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The job of a trendline is to show the direction and strength of the trend and also to show when the strength of the trend is lessening, changing, reversing.
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I certainly agree with that.
db, You are a very astute poster here, as I stated earlier. I can only come to the conclusion that you have dabbled with trendlines, but have never done anything close to an exhaustive study. I would easily bet the farm that if you (dbphoenix) really took the time, you would assume a different outlook towards trendlines.
I wouldn't give away much, just as I would not expect you to do, either. However, I'll say this: The traditional way of drawing trendlines is not always (although sometimes it is) the best way to construct a trendline. However, again, even the traditional method often can reap profitable results. Sucks to be vague, especially with someone I respect, but.....well, you know.
I don't mean to sound like a smarta%%, but for you to imply to me that trendlines are mostly a tool that is not useful as S/R, would be kinda like me telling you that you don't know when your birthday is. And I mean that respectfully and sincerely.
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Ooooh yes it does! Makes all the difference in the world.
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Unless everyone is drawing the same lines on the same charts in the same timeframe using the same bar intervals, then trendlines can't provide support or resistance.
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This is just not correct, db. This is another reason there are winners and losers in the market. Apparently the "big money" knows where to properly construct them.
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The job of a trendline is to show the direction and strength of the trend and also to show when the strength of the trend is lessening, changing, reversing.
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I certainly agree with that.
db, You are a very astute poster here, as I stated earlier. I can only come to the conclusion that you have dabbled with trendlines, but have never done anything close to an exhaustive study. I would easily bet the farm that if you (dbphoenix) really took the time, you would assume a different outlook towards trendlines.
I wouldn't give away much, just as I would not expect you to do, either. However, I'll say this: The traditional way of drawing trendlines is not always (although sometimes it is) the best way to construct a trendline. However, again, even the traditional method often can reap profitable results. Sucks to be vague, especially with someone I respect, but.....well, you know.
I don't mean to sound like a smarta%%, but for you to imply to me that trendlines are mostly a tool that is not useful as S/R, would be kinda like me telling you that you don't know when your birthday is. And I mean that respectfully and sincerely.