I wanted to post a thread to try and find the answer to this question
'What is true support and resistance?'
I have come accross many methods of finding support and resistance but the trouble is so many of them dont really work that effectivly and can have you questioning the direction of the market on two things:
breakout and bounce.
I see this because quite often price will break a support or resistance level, come back and go other way. Or somtimes break cross again and cross again.
Or it will bounce after small retracement it will either 'creep' along it and break or 'smash' through it.
I think a good way to determining true or maybe I should say strong support and resistance, wud be to think about traders phycology around these points.
Why wud price break this level and not continue?
What is going on with orders around here?
If anyone has any input it wud be appreciated, maybe we can agree on some truths.
'What is true support and resistance?'
I have come accross many methods of finding support and resistance but the trouble is so many of them dont really work that effectivly and can have you questioning the direction of the market on two things:
breakout and bounce.
I see this because quite often price will break a support or resistance level, come back and go other way. Or somtimes break cross again and cross again.
Or it will bounce after small retracement it will either 'creep' along it and break or 'smash' through it.
I think a good way to determining true or maybe I should say strong support and resistance, wud be to think about traders phycology around these points.
Why wud price break this level and not continue?
What is going on with orders around here?
If anyone has any input it wud be appreciated, maybe we can agree on some truths.