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all about support and resistance

  • #1
  • First Post: Apr 19, 2019 5:15pm Apr 19, 2019 5:15pm
...that trading is all about support and resistance.

example -- price will go up and stop somewhere so i draw a resistance level there (remember that these levels are areas and not exact lines). from there, price will go down so i draw a support level there. then price will go sideways for a bit and attempt to break the levels that i drew. often, price will go back inside the range which is why i always wait for the pullback after the breakout before entering.

only time price will not stay sideways for a while is during strong trend... which isn't a big deal because it's easier to trade strong trends than ranging ones.

i used to download all the indicators i can and test them but in the end, it's all about simple support/resistance areas.
  • #2
  • Apr 20, 2019 5:46am Apr 20, 2019 5:46am
Hi iLi3CK - What do you do if it does not pull back?
Don't trade what you think. Just what you see!!!
  • #3
  • Apr 20, 2019 3:22pm Apr 20, 2019 3:22pm
What's interesting is that I have a strategy that just opens trades at certain times of the day, no technical nor fundamental analysis nor looking at s/r levels and it's profitable so far. I guess you can call it time based analysis.
  • #4
  • Apr 20, 2019 3:38pm Apr 20, 2019 3:38pm
There is a law of trading : the more objective the analysis, the greater the progress and profit.

Trading on supply/demand zones is called SUBJECTIVE trading, because you impose your beliefs on Market " I think from here it will reject, because it made a Shooting star right in the supply area. I think it will go in the next demand area" . Candlestick pattern does NOT work as majority are using and Steve Nison did NOT said about situations when to select candlestick patterns.

Trading books teach you how to trade NOT how to make money!

It is the job of the trader to discover the situations when candlestick works and when not. No book in the world will teach you such things, only yourself by your own discoveries wich result after much, much, much, duh... MUCH! practice!
Money moves the market, not an indicator.
  • #5
  • Apr 20, 2019 6:52pm Apr 20, 2019 6:52pm
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Imagine being an ant. To say the travel paths are all just circles in perspective. Walking in a sphere, but every moment the ant is in, it believes it's on the top of its own little circle. It couldn't go up and down for depth due to limitations of it moving side to side.
But for the sake of debunking these for others as I already posted in my last post. I took just the last bit of information provided by the market. You can take whatever history you would like though. It's the same.

You can't say 1.3000, being a pretty fine round number, if I may say, wouldn't qualify as the majority of everyone's support/resistance point.
So here ya go. In red are circles where, let's face it, you're uncertain about holding it. The hopeful stage. You couldn't determine when it'll go down ever again at that point.
And in black are all the points that when it comes to making money never even gave you a chance. They were spaced just a little bit away from your reach, analysis, & psychic abilities.
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  • #6
  • Apr 21, 2019 1:07am Apr 21, 2019 1:07am
Quoting Swisse
{image} Imagine being an ant. To say the travel paths are all just circles in perspective. Walking in a sphere, but every moment the ant is in, it believes it's on the top of its own little circle. It couldn't go up and down for depth due to limitations of it moving side to side. But for the sake of debunking these for others as I already posted in my last post. I took just the last bit of information...
hi - I like complex ideas made simple. so the ant walks to the top of the globe_ can't go physically higher and stops and comes back down? and this is price? So all we have to do every time is wait for the ant to get to the top of the globe. This easier than I thought!!! How long do we have to wait? and sphere is solid glass? Why does the ant want to walk up the sphere?
Don't trade what you think. Just what you see!!!
  • #7
  • Apr 21, 2019 1:42am Apr 21, 2019 1:42am
So what makes price to reverse? Is it predetermined support & resistance levels?
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Check profile for my blog
  • #8
  • Apr 21, 2019 1:54am Apr 21, 2019 1:54am
Quoting BreakDaStops
So what makes price to reverse? Is it predetermined support & resistance levels? {image}
I think it might be gravity or the ant is scared of heights. No seriously I think the best way to learn is by questions! and it has to be fun!!
Don't trade what you think. Just what you see!!!
  • #9
  • Apr 21, 2019 1:55am Apr 21, 2019 1:55am
Quoting skyway
{quote} Excellent question. I always wonder why when the ant eventually falls back down. If only someone can offer a good logical answer.
Might be gravity!
Don't trade what you think. Just what you see!!!
  • #10
  • Apr 21, 2019 2:20am Apr 21, 2019 2:20am
Quoting Theoak
{quote} hi - I like complex ideas made simple. so the ant walks to the top of the globe_ can't go physically higher and stops and comes back down? and this is price? So all we have to do every time is wait for the ant to get to the top of the globe. This easier than I thought!!! How long do we have to wait? and sphere is solid glass? Why does the ant want to walk up the sphere?
I'm not even sure if I understood anything by reading it.
complex idea made simple with colorful kid toys
Inserted Video


what I said with some objects, but they're mostly bland
Inserted Video


Complex idea = complex idea? I've not found a reason how to simply explain something complex to a person who fancies simplicity.
If you want a complex idea to be simple, just be better at processing the idea. It's a relationship thing like lifting a car.
You can't ask for a car to be light. A strongman just lifts because he can.
THIS HAS NOTHING TO DO WITH MARKET PRICES. It does have to do with limitations of viewing market price in a manner that isn't entirely reliable.
That's where my contribution ends. On a scale only inspiration. Not the secret to leaving Mcdonald's to be a corporate raider and feeding a family of 5.

For those who say support and resistance is the end of all knowledge give or take. I can't help with denialism. I respect flat earth people and however they handle their business.
  • #11
  • Apr 21, 2019 3:28am Apr 21, 2019 3:28am
Quoting Swisse
{quote} I'm not even sure if I understood anything by reading it. complex idea made simple with colorful kid toys https://www.youtube.com/watch?v=0t4aKJuKP0Q what I said with some objects, but they're mostly bland https://www.youtube.com/watch?v=N0WjV6MmCyM Complex idea = complex idea? I've not found a reason how to simply explain something complex to a...
Hi - You have gone all complicated on me. I'm honestly trying to understand, I really liked your ant idea and I thought it was a good analogy and just needs to grow it a bit as a better analogy of the markets. I was asking simple questions to try and grow the idea. They are very simple question such as why does the ant want to climb the sphere. If the sphere is solid then how do we ever get breakouts? I don't think we can accept not to questioning things. Unless it is why a negative x a negative is a plus (and Half the teachers don't know). If we do not question things then we will never learn. Just think of all the developments in science started with a question. Here is a question for you. If the world is flat and I wanted to go to India for tea. I'd have always gone east, we would never have found the west Indies - unless someone did not question the answer.
Don't trade what you think. Just what you see!!!
  • #12
  • Edited Apr 24, 2019 1:43am Apr 23, 2019 1:40pm | Edited Apr 24, 2019 1:43am
Quoting iLl3CK
...that trading is all about support and resistance. example -- price will go up and stop somewhere so i draw a resistance level there (remember that these levels are areas and not exact lines). from there, price will go down so i draw a support level there. then price will go sideways for a bit and attempt to break the levels that i drew. often, price will go back inside the range which is why i always wait for the pullback after the breakout before entering. only time price will not stay sideways for a while is during strong trend... which isn't...
it is good that you focus on AREAS, rather than" static levels"... flexibility is a good sign
  • #13
  • Apr 23, 2019 7:55pm Apr 23, 2019 7:55pm
Quoting BreakDaStops
So what makes price to reverse? Is it predetermined support & resistance levels? {image}
Price reverses when traders enter the market and overwhelm the previous direction. Yes previous support - resistance levels cause traders to initiate trades as do trend lines and indicators .
Never said I was Batman,all I'm saying is you'll never see us together.
  • #14
  • Apr 24, 2019 11:53pm Apr 24, 2019 11:53pm
Support/resistance trading is highly touted because it allows for everyone to know where you enter/exit, so they can take advantage of you by using head fakes and consolidation to play with your emotions. The head fakes activate the pending orders, or make a trader jump in on presumed momentum, then they reverse price so they can hit the stops, which are typically mass assembled within easy access of the consolidation zone. This form of trading occurs on those lines you have been brainwashed to use. So, if you enjoy trading in price manipulation, go for it. It is how 95% of traders trade (and lose), the topic of many of the dead FF threads, and how the "economists" on TV explain their predictions. Profitable traders tend to know support/resistance is fake and don't bother with it.

If each new trade is a new event, which it is because it is made up of different traders with different names, different lot sizes, and different reasons for entering/exiting, then why would any logical person assume the current trade is going to "begin" or "stop" where the last trade did? How many sports game have you watched where the teams suddenly stop scoring because they reached the points of the previous game? LOL. Oh, it might temporarily because the banks are going to manipulate those levels so they can steal the money of the traders using those lines, or it might once in awhile from the sheer volume of novice traders trading like that, but it is not consistent. The sample size of a line touch is "1", which means there is no mathematical probability on direction and any action taken on the line touch is simply a guess. Good Luck trading in the kill zone.
You cannot be extraordinary by being normal
  • #15
  • Apr 25, 2019 12:46am Apr 25, 2019 12:46am
Quoting dkrock
Support/resistance trading is highly touted because it allows for everyone to know where you enter/exit, so they can take advantage of you by using head fakes and consolidation to play with your emotions. The head fakes activate the pending orders, or make a trader jump in on presumed momentum, then they reverse price so they can hit the stops, which are typically mass assembled within easy access of the consolidation zone. This form of trading occurs on those lines you have been brainwashed to use. So, if you enjoy trading in price manipulation,...

In regards to evil consolidations that make EVERYONE lose.. it's your own biased assumption.

while it's true that the few times I traded consolidations I lost it was not because of fake breakouts, it was because after 2 or 3 losses I either:

a) expected an imminent breakout and desperately increased the lotsize.
b) removed the sl as price moved against me.
c) took profits way too early as the breakout occured and failed to recover the dd caused by the previous losses.
d) the breakout finally occurred and I reversed the position for no reason (ultimate frustration).

ignore the negative people who just say "it doesn't work".
  • #16
  • Apr 25, 2019 7:59am Apr 25, 2019 7:59am
Quoting dkrock
{quote} Yes, consolidation areas are frustrating. I worked for years to figure out when they were occurring and when they ended. They do not always occur at support/resistance lines, but frequently do. Since you cannot trade profitably in them either, not sure why you are calling me a "negative people" and then choosing to "Ignore" me. Strange?? The topic was support/resistance though. Consolidation areas frequently occur at major support/resistance lines, but they also occur at other areas of price cycles. If you are tracking the cycles, it is...

ok sorry for the ignore. I actually enjoy some of your post, until you bring up the "line line line" stuff.
I trade lines with no problem. do you have problem with lines ?

if I wasn't able to profit from consolidations, it doesn't mean anything. the same applies to you. if you show me proof that it's a losing strategy I'll be happy because it's a tough strategy indeed and I hate it lol.
until then....
  • #17
  • Apr 25, 2019 9:19pm Apr 25, 2019 9:19pm
Quoting HeyYou
{quote} In regards to evil consolidations that make EVERYONE lose.. it's your own biased assumption. while it's true that the few times I traded consolidations I lost it was not because of fake breakouts, it was because after 2 or 3 losses I either: a) expected an imminent breakout and desperately increased the lotsize. b) removed the sl as price moved against me. c) took profits way too early as the breakout occured and failed to recover the dd caused by the previous losses. d) the breakout finally occurred and I reversed the position for no reason...
True thats so nice to hear, S and R to me is bread and butter and I trade with other indicator as well , but the core to my trading is that thought this thread was about ideas to S and R not an argument wither this works or not, who cares, any trader can make anything works in the market as long as he she puts the dedicated works associated with making it work otherwise its the same loop and cycles
I Have Learned to Take Some Losses to Make Profits
  • #18
  • Edited 7:30am Apr 26, 2019 1:39am | Edited 7:30am
Quoting TheScorpS
{quote} True thats so nice to hear, S and R to me is bread and butter and I trade with other indicator as well , but the core to my trading is that thought this thread was about ideas to S and R not an argument wither this works or not, who cares, any trader can make anything works in the market as long as he she puts the dedicated works associated with making it work otherwise its the same loop and cycles
Yes the thread should be for sharing IDEAS about SRs (good or bad, whatever), but the obvious is not obvious on trading forums.
what is he talking about btw ?
BANKS don't give a damn about retail traders. first because the retail market is "peanuts" compared to the whole market. second because most brokers are MM hence our orders get internalized. third because banks don't speculate on CFDS like the retail traders do: they usually investment long term. maybe he meant hedge funds.. they don't care about us either. only the very despeate brokers do. also what's wrong with manipulation..idk.

thanks for your SUPPORT.. LOL ;-)
  • #19
  • Apr 26, 2019 2:25am Apr 26, 2019 2:25am
Look at EUR/USD right now @ Wednesdays low 1.1140. Is that going to prove to be a good buy or sell opportunity?
  • #20
  • Apr 29, 2019 4:10am Apr 29, 2019 4:10am
The basic concept of price action lies at the core of technical analysis and is a simple but powerful way to identify trade opportunities.
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