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Support & Resistance

  • #1
  • First Post: Jul 16, 2007 10:58am Jul 16, 2007 10:58am
What is the best way to establish the S & R of a trade?
  • #2
  • Jul 16, 2007 6:19pm Jul 16, 2007 6:19pm
I don't know what is best. But round numbers work for me. e.g 1.3600 1.3700
  • #3
  • Jul 16, 2007 6:28pm Jul 16, 2007 6:28pm
Quoting Spartan76
What is the best way to establish the S & R of a trade?
Zoom Out.
  • #4
  • Jul 16, 2007 7:15pm Jul 16, 2007 7:15pm
Quoting Bemac
Zoom Out.
...and step back
Stubbornly persistent
  • #5
  • Jul 16, 2007 7:36pm Jul 16, 2007 7:36pm
And then study when support/resistance holds and when it doesn't. Tricky, tricky.
  • #6
  • Jul 16, 2007 8:51pm Jul 16, 2007 8:51pm
Quoting Spartan76
What is the best way to establish the S & R of a trade?
Fibs
Trend lines
MAs

Quoting SunTrader
And then study when support/resistance holds and when it doesn't. Tricky, tricky.
This is when price action come to play
  • #7
  • Jul 16, 2007 10:07pm Jul 16, 2007 10:07pm
Fibs and trendlines target zones which can line up with S/R.

Support/resistance lies where most get churned-up. Where the market consolidates and spends the most time which shows that it is in equilibrium.
If market moves higher from this point it becomes support for the next time price comes back there and vice versa for resistance.

MA's are coincidental with where S/R might/might not be at any particular price/time. MA's turn only after price has, so please tell me how can they be S/R. Other than so many use them. Or the banks use them. Got to do better than that. S/R is supply and demand. Nothing more.
  • #8
  • Jul 16, 2007 10:18pm Jul 16, 2007 10:18pm
http://www.forexfactory.com/showthread.php?t=29052

Check Jim's post
  • #9
  • Edited 7:43pm Jul 17, 2007 9:07am | Edited 7:43pm
I am familar with James16 and his many threads. And the fact that he is a effective trader using MA's and what I believe more importantly price action. I don't claim to know what his total trading system entails. But I did not say MA's don't work at all. Just that they are not real S/R, only when they line up coincidentally.

Now I can recommended to you reading a trading article by going to SFO magazine website (sfomag.com) and ordering Trade What is Real, Not What You Feel, by Sam Seiden.

One quote "What many beginning traders do not realize is that they are walking east and west trying to reach the North Pole".
  • #10
  • Jul 17, 2007 11:03am Jul 17, 2007 11:03am
But to do this donīt you need to know if other traders are short, long and what they might do because of this? And even new buying and shorting. Perhaps itīs not SO important
  • #11
  • Jul 17, 2007 11:18am Jul 17, 2007 11:18am
If it is true S/R then that will tell whether or not there will be more buying or selling. That is the idea to look for S/R, after all.

Otherwise flip a coin.
  • #12
  • Jul 17, 2007 11:42am Jul 17, 2007 11:42am
Quoting SunTrader
If it is true S/R then that will tell whether or not there will be more buying or selling. That is the idea to look for S/R, after all.

Otherwise flip a coin.

Yes but i donīt see how we can know that there will be more buying (or pressure rather) than selling untill after it has happened if we donīt know who bought or shorted before. And then new ones.
  • #13
  • Jul 17, 2007 12:41pm Jul 17, 2007 12:41pm
isn't technical analysis in general just flipping a coin?
  • #14
  • Jul 17, 2007 6:07pm Jul 17, 2007 6:07pm
Quoting Clubber Lang
isn't technical analysis in general just flipping a coin?
It's more than that if you ask me. This is a damn broad question.
  • #15
  • Jul 17, 2007 7:45pm Jul 17, 2007 7:45pm
Quoting johs
Yes but i donīt see how we can know that there will be more buying (or pressure rather) than selling untill after it has happened if we donīt know who bought or shorted before. And then new ones.

It is right there on any chart. No TA involved. Just good eyesight.
  • #16
  • Jul 18, 2007 4:56am Jul 18, 2007 4:56am
Quoting Spartan76
What is the best way to establish the S & R of a trade?
I always draw daily Point and Figure charts(13 pairs) on weekdays. Trendline is very useful art. For example, this is USD/JPY daily chart. Green is "Bullish Support Line". Red is "Bearish Resistance Line".
In fact, today's low quotation is yellow color(○○○）. Today I wait till USD/JPY can defend its support line(yellow dot-line) and exceed 122.60 yen(row of ŨŨŨ).
Box size: 20 pips per box(EUR/GBP is 10 pips, other GBP pairs are 40 pips per box, I decided)
Attached Image (click to enlarge)
Click to Enlarge Name: WS000342.JPG Size: 96 KB
Peace and Happiness through Prosperity (by Konosuke Matsushita)
  • #17
  • Jul 18, 2007 9:32am Jul 18, 2007 9:32am
Quoting luqmanz
It's more than that if you ask me. This is a damn broad question.
I know I'm just joking. But seriously, I have never quite understood the "science" of technical analysis. From what I have learned about fx (which is quite limited.lol) news events seem to drive the market. Technical analysis seems like a bunch of voodoo. What good is a chart when the Non farm payrolls come out?
  • #18
  • Jul 18, 2007 9:40am Jul 18, 2007 9:40am
one more quick note. signal providers like 4x made easy. is that solely techincial analysis?
  • #19
  • Jul 18, 2007 10:15am Jul 18, 2007 10:15am
Quoting Clubber Lang
I know I'm just joking. But seriously, I have never quite understood the "science" of technical analysis. From what I have learned about fx (which is quite limited.lol) news events seem to drive the market. Technical analysis seems like a bunch of voodoo. What good is a chart when the Non farm payrolls come out?
To me, TA is most likely a method of studying social science using price charts. (You have greed, fear, uncertainty, optimism, pessimism) etc.
Trading based on news like NFP is not the same as trading based on fundamentals.
  • #20
  • Jul 18, 2007 11:24am Jul 18, 2007 11:24am
Quoting Clubber Lang
one more quick note. signal providers like 4x made easy. is that solely techincial analysis?
Its solely simple-minded nonsense.

Appeals to people who think the markets are complicated and they can never learn to trade without software telling them what to do. Instant gratification or so they think.

If you have seen their info-mercials they show hundreds at each seminar held at locations all around the US on a weekly basis. If it worked as they claim all these customers would be ruling the trading world by now.
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