Support and resistance
- Thread starter bobvago
- Start date
Support/Resistance are not trade signals...they are an analysis or simply referred to as "s/r analysis".
Thus, you need a trade signal (e.g. traditional chart patterns) to use with s/r analysis. For example, if your chart pattern shows up at a support area...your chart pattern will give you either a buy or sell signal. Yet, if no trade signal appears when price reaches support...there's no trade.
Newbie mistake is to think that support implies only buy and resistance implies only sell.
Same is true for resistance.
How do you determine them ? Use Google...there you'll find maybe many dozens of different ways to compute s/r levels and you'll find hundreds of trade signals on Google to use with s/r levels.
Also, most of today's charting software have s/r analysis (several types) computed in the software.
Simply, S/R Analysis is one of the most commonly discussed analysis on the planet. Very easy to find all the free info you want on Google about any questions you have about that type of analysis.
By the way, if you hate Google...use the "Search..." function here at the forum in the upper right corner. You can find maybe a few hundred threads at this forum where members talk about their use of s/r levels (analysis).
Thus, you need a trade signal (e.g. traditional chart patterns) to use with s/r analysis. For example, if your chart pattern shows up at a support area...your chart pattern will give you either a buy or sell signal. Yet, if no trade signal appears when price reaches support...there's no trade.
Newbie mistake is to think that support implies only buy and resistance implies only sell.
Same is true for resistance.
How do you determine them ? Use Google...there you'll find maybe many dozens of different ways to compute s/r levels and you'll find hundreds of trade signals on Google to use with s/r levels.
Also, most of today's charting software have s/r analysis (several types) computed in the software.
Simply, S/R Analysis is one of the most commonly discussed analysis on the planet. Very easy to find all the free info you want on Google about any questions you have about that type of analysis.
By the way, if you hate Google...use the "Search..." function here at the forum in the upper right corner. You can find maybe a few hundred threads at this forum where members talk about their use of s/r levels (analysis).
As wrbtrader mentions above, there are many different ways, and everyone does it differently. Simple moving averages, exponential moving averages, trendlines, swing highs/lows, market profile and pivots are more "traditional" ways of figuring our the S/R. Other people use more "occult" methods to find S/R, such as Fibonacci extensions, Elliott Waves, and even Jupiter cycles around Mercury.
It's all up to you to research and find out what works for you and what does not.
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What does "solely support and resistance" mean? As pointed out above, S/R means different things to different people.
Give us your definition of support and resistance.
I am trying to tell you an important thing: how I trade is not how you should trade. With regards to S/R, start here:
https://en.wikipedia.org/wiki/Support_and_resistance
Have you read the "Market Wizards" series of books by Jack Schwager? This would give you an idea of the multitude of trading methodologies.