Yeah, but you could also say the same thing about fundamental analysis and everything else regarding trading/investing. Since you can't see into the future, what's the point?
The Price Action Journal 2
- Thread starter schizo
- Start date
One last try.
The instance you previously referenced: can't you see (yellow box) consolidation then wide range bar breaking out above - which means there were more motivated buyers than sellers?
Once price revisits that spot good chance there would be same result. Buying pressure. Which did happen and was within 1 tick (4007 vs 4006.75) of line!!!!
Nice. 2nd measured move on the right (11 o-clock hour) was also an exact 61.8% retracement too but I know, only PA not TA.
Alright, that makes more sense. Thx.One last try.
The instance you previously referenced: can't you see (yellow box) consolidation then wide range bar breaking out above - which means there were more motivated buyers than sellers?
Once price revisits that spot good chance there would be same result. Buying pressure. Which did happen and was within 1 tick (4007 vs 4006.75) of line!!!!
View attachment 294300
So you actually don't get in at the 3-bar reversal (that's what the yellow box looks like to me) but wait until price revisits that point later. That's interesting, never thought of it that way.
Like with everything in trading at some point you must make a decision and pull the trigger, meaning, you make a decision of your evaluation of expected value. It will always be forward looking. So yes, the same applies to fundamental analysis, but others don't post charts or tables of fundamental analysis models that are assembled after the fact when everything is said and done. Looking back is easy. What gets more interesting would be if @SunTrader would indicate his support or resistance where he sees it right now. Then he/others can evaluate whether such levels hold or not. Most often it turns out that such levels are randomly crossed.
Well, that's easy. Support is at 2 and resistance at 1 (see below).
But here's a brief analysis of what I see going forward.
First, it appears that we are in a handle of the "cup and handle" formation, hence more bullish than bearish IMO.
Second, we've just registered "higher low" (cf. number 4)
Third, we've touched the trendline three times (cf. number 3)
As such, were we to cross above the trendline, there's a high probability we will revisit the resistance line at 1.
What exact price levels would this translate into and what would you do if prices reached those levels? Would you long or short at resistance and support? Unless you had well defined signals they would be meaningless.
You should remove those horizontal support resistance lines.
It causes
more confusion,
more frustration,
more distraction,
more disappointment
to day trading.
also, remove lines 3 and line 4.
just draw a box and label the box 'garbage zone - do not trade'.