Quote from Hamlet:
What is R?
There are many common abreviations that come from conventions of investing and trading. Glossaries cover all of these conveniently.
Here in thei thread you see the owner querying on three levels: Support (S) and Resistance (R) which are more or less fundamentally determined by analysts to be the absolute upper and lower limits of price movement in the specific corporation's business and position in the sector in which it operates. most often traders estimate this by guessing where the price will not go. My compromise is to use a geometric construct that uses channels plus a stop strategy. If you wish google the 12 stop methods I posted and refer to types 8 and 9.
If you are making money in trading, you avoid holding or trading stocks that are testing R or S because it eats up so much time in a narrow trading range. In a trading business plan this type of stuff would appear as one of the caveats of a given method.
What resolutions do you use and which ones do you like to see line up when taking a position?
I create my preferred resolution by mechanical means. Most software packages do not have this capabiltiy. I do not use candle sticks because they cause mental distortions of data for my personal reasoning processes.
I create the resolution from the viewpoint of considering adjacent bars; one is forming (right) and the other is formed Left). I choose to keep the open and close markings as small as possible and I do this indirectly. I widen the bars and separate them. This creates white space and emphasizes the "formation" of the present bar as I "look" at it.
My primary goal is to determine that the bar forming is unimportant so generally I am glancing at best and it is not actually creating a mentally processable image. Price is very low on my list of importance for making money since I use leading indicators of price primarily.
What lines up is, of course, the crucial key to making money. I annotate into the future to observe limitations coming into the present. I deal in a philosophy of history that is the "symmetric" philosophy. The extent to which the future is important is determined by the extent of importance of crucial elements in the past.
So there you see the framework and shell of the bounded territory in time and directions. It is a vector oriented universe. what fills it is "no change", "what wasn't that" (possible missing elements of the contemporary unfolding sequence of events) and "flaws". This is an incomplete list of what can be in the space; all of those things do appear and they do one thing: make more money. I am not looking for what makes money; instead I am focussed primarily on data I need to make decisions. Making money takes care of itself. All the streams of capital that are pulling their weight are known to me. the strams of capital that are not is where I focus in parallel with the "potential" trading investments that are not in my portfolios that perhaps will be put into them momentarily.
By now you have come to be aware of how important knowledge, skills and experience are for making money.
Your specific query deals with the dynamic of the pair of events to terminate a "hold" to obtain capital and to be able to begin a money making cycle by applying capital. At my limit of a stram of capital it is the combination of about 30 partial fills to exit and about 20 partial fills to enter (think of partial fills as about 3,000 shares as a partial fill block for exits and 5,000 share blocks for entrance.
Here is what I look at:
1. The volume of the instrument is "growing" at an eveer increasing rate as it passes through a pro rata minimum rate. This, graphically is a curving line whose increasing slope exceeds a prededetermined sloping linefor buys. This is omitted for sells.
2. T&S is showing block sizes and they are dictating the size of the "market" order blocks I must use to minimize my personal impact on the trading. Graphically this can be depicted as a flow of T&S horizontally where the frequency of event controls the right to left movement of the spikes of volume. I apply a left to right "ray" to this depiction; the ray value is my block size. The market dictates where this ray is placed. Works both ways (sells and buys)
3. I keep a log of the fills being done for me by the person who is doing the work. The graphic representation is showing the cummulative total volume for the day and another line which is my partial fills times 10 and the lines are kept superimposed or I make a call to speed up the worker.
Several of these go on simultaneously in the two different directions. As you can see the thing that I am occupied with is making cash available to make money at a faster pace. What I line up is to keep my transfer as close to 10% of the action as possible. It is a case of dealing with not being to pushy in the marketplace and always being very timely as the cremeing activity is going on. The only variable for timing cremeing is volume as it's time rate of change indicates the upcoming money making opportunity.
Trading is a precision science when a lot of money is being made. Growing capital at the rate the market dictates to you is the most exciting enterprise known to mankind. You can imagine that my trading console affords me just what I need to sense.
To keep it set up to display the two points that you inquiry is about, in fact, the crucial real time focal point of making money.
All of this is surrounded before and after markets with the prep and reolution of market trading.
As real time unfolds and the market is open, a frequently repeated routine must be carried out without ommissions and getting trapped in subloops. I do :monitoring, analysis , decision making and taking timely action over and over and over.
As you know (from your questions) very few people ever get to really "see" the market much less follow the market. The vaste majority of traders are planless, have no methodologies, nor do they ever get to see the market working.
Real and stong trading is like shooting fish in a barrel.
