I disagree. Looking past a chart to develop an understanding you can build an objective framework to trade with is psychological. After all, it's only in your mind.
Why support becomes resistance
- Thread starter BobbiDigital
- Start date
I disagree. Looking past a chart to develop an understanding you can build an objective framework to trade with is psychological. After all, it's only in your mind.
Who said anything about a chart? Your question was a technical one having to do with how orders are handled.
Asking questions is fine. How else are you going to learn anything. But you needn't be such a jerk about it. Why after all would anybody bother to answer? Including me.
Have a nice day.
I got to be honest, I'm at a disconnect from all the hurt feelings floating around here. If anything the regular posters are just this dik site promoting traffic but squashing real people from sharing real ideas. If anything I posted is of interest I'll gladly post a chart
otherwise peace out.
BD
otherwise peace out.
BD
I think this is a different topic. Therefore, I highly recommend you have this particular type of discussion with someone that has specifically worked as a floor trader, institutional trader or currently employed as such. I say this because my old man was a floor trader and I have relatives along with close family friends that are institutional traders in different types of markets in comparison to each other. Whenever I had this type of conversation with one of them...it was not magical nor did it changed how I traded.
Knowing WHOM are the big players is not going to impact your trading as a retail trader. Knowing their OBJECTIVE will often be in conflict with the OBJECTIVE of other big players. That's why I mentioned earlier that the "reasons" why big players do what they do will be different on any given trading day and will often be for a different reason in comparison to another big player.
I'm not trying to make this a complicated answer for you.
You started in you're opening post with a vague topic like support/resistance without any explanation of what that is to you to prevent replies from being vague or without substance. In contrast, you have now shifted to talking about "large orders" by big players without disclosing what markets you're talking about unless I missed that in this thread.
By the way, swing points and strong continuation price actions can occur on small orders or large orders. Yet, you seem to be only interested in swing points while not interested in the fact that "large orders" can also occur as strong continuation price actions.
My point of view is that as a futures trader and you really need to give readers a lot more information than what you've done so far.
You're opening statement was full of negativity (e.g. answered many times...crap IMHO) and you have continue that tone with saying folks here have "hurt feelings" and then saying its a "dik site promoting traffic".
I think you're taking this topic too personal considering you're being offensive from the start.
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Exactly;
strongest of trends or longest of trends.Meaning, with time,, the trend changed, from bull trend to bear trend[resistance rules].
I'm not a floor trader, I'm not an institutional trader and I'm not some big market player that has impact on what I trade (futures).
I repeat, those are the folks you should be talking to and maybe you'll have that magic conversation that answers all your questions or maybe there's nothing there in their replies. All I know is that it didn't change my views about the markets and it didn't impact my trading.
As for learning, I'll always be a student of the markets because the markets is always changing. Thus, the markets teaches me something new almost every week.
Just in case you didn't know, there are a few traders at this forum that are former institutional traders. I doubt they hang out in the "psychology threads"...I could be wrong.
hypotheticaly, somewhere, wherever they have the most analysts and data, they add up everything from toothbrushes to satellites, price it all into a large bucket and reprice it as one goes up in demand and another down cost of components to produce each item change, crunch all that and you have a value, then sell above .buy below back to the value ... toss in a human value like demand/popularity of beanie babies, lack of and you have a formula, .. consider the guy ,or 2 or 3 with the most info, usually the largest accts like the fed for instance and that determines the price, toss in their exposure and that is another factor,how fast and how much do they lose per tick as a move grows...no simple answer but thats the gist, take a pebble of sand out of that equation and you have your retail trader
"only trading off charts," catches a brief moment in that larger picture
heres a pic of cl from 8/10 to 8/11
http://www.elitetrader.com/vb/attachment.php?s=&postid=3266923
below is a pic of cl today with those upper areas filled in and a value are of 95-95 .50 , with a little work to do filling in below,think paint bu number and see the spots that havent been painted yet
it's just a visual of how temporary those values are, how they are part of a larger picture, and each is a piece of the puzzle....the question should be is this expensive or cheap here and if cheap where will it become expensive and vice versa, the trend will tell you cheap or expensive and the charts will give you a target, think of it as a live google map of sheep in a pasture , if you zoom in you can see the direction they are moving and where the fences are
sorry ,long winded as usual
'
I agree. S&R exchanging roles is really a liquidity shakeout. Generally two types of traps - squeezes and shake-outs. I think the conventional explanation, while partially correct, is usually offered to conceal the first half of the trade, which is another edge.
Quote from murray t turtle:
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Exactly;
strongest of trends or longest of trends.Meaning, with time,, the trend changed, from bull trend to bear trend[resistance rules].
Wisdom is profitable to direct
Exactly. I have contextual filters for when I will trade "previous S becomes R; previous R becomes S" based on studies of the visual representation of price action leading into the instances when it worked vs. when it failed (by that I mean it resulted in a significant price swing vs. blew right through the level or hardly budged off it).
Years ago my friends and I found an "IQ" test on-line and we all took it. It was all visual pattern sequences and you had to choose which one came next. I ended up with the highest score. I think the ability to detect such pattern relationships is what made it fairly easy for me to discern contextual filters for when patterns "work" more often than not. However, all my "eyeball analyses" were tested to ensure they provided real edges