Hello All,
This question might have already been answered, but I could not find it so I'm calling to you all for a lightbulb moment.
This may be completely stupid, this probably can be calculated and demonstrated with a lot of spare time, but it might be quicker to ask to knowledgeable FFers
Here we go :
I read in many posts/discussions about support/resistance levels for some things that I instinctively think should not have.
Let me illustrate with 2 examples :
- Indices (DAX, S&P, FTSE/UK, etc etc)
As I understand these are a benchmark of a country stock market, or an aggregate of several stocks performance. So... while all those stocks have their own S/R and technicals that will influence the value of their respective indice, how can the corresponding indices have their own life/technical analysis ?
"Mmmmh ok so it looks like the DAX is reaching a key support level @ xxXXxx"
How could this happen if the underlying stocks that are part of the Dax do not reach a support level themselves ? And even then , many of them/the biggest ones would have to do so at the same time ?!?
- Currency crosses (Let's say ... EUR/JPY)
Same thing here, it puzzles me to read about technical analysis on such pairs when (and again, don't hesitate to use a flamethrower on me if what follows is total heresy) this is a product of EUR/USD and USD/JPY. So ... when we are nearing support/resistance on EUR/USD or USD/JPY, then EUR/JPY would be nearing a support/resistance level too ? Or is it a bit more complicated than that ?
Thanks for anyone who will take the time to answer, the bottom line for me is to know whether it makes sense to go for a deep technical analysis on crosses and indexes or ... is it a total waste of time.
J
This question might have already been answered, but I could not find it so I'm calling to you all for a lightbulb moment.
This may be completely stupid, this probably can be calculated and demonstrated with a lot of spare time, but it might be quicker to ask to knowledgeable FFers
Here we go :
I read in many posts/discussions about support/resistance levels for some things that I instinctively think should not have.
Let me illustrate with 2 examples :
- Indices (DAX, S&P, FTSE/UK, etc etc)
As I understand these are a benchmark of a country stock market, or an aggregate of several stocks performance. So... while all those stocks have their own S/R and technicals that will influence the value of their respective indice, how can the corresponding indices have their own life/technical analysis ?
"Mmmmh ok so it looks like the DAX is reaching a key support level @ xxXXxx"
How could this happen if the underlying stocks that are part of the Dax do not reach a support level themselves ? And even then , many of them/the biggest ones would have to do so at the same time ?!?
- Currency crosses (Let's say ... EUR/JPY)
Same thing here, it puzzles me to read about technical analysis on such pairs when (and again, don't hesitate to use a flamethrower on me if what follows is total heresy) this is a product of EUR/USD and USD/JPY. So ... when we are nearing support/resistance on EUR/USD or USD/JPY, then EUR/JPY would be nearing a support/resistance level too ? Or is it a bit more complicated than that ?
Thanks for anyone who will take the time to answer, the bottom line for me is to know whether it makes sense to go for a deep technical analysis on crosses and indexes or ... is it a total waste of time.
J
The solutions are in your mind, not in the market...