Disliked{quote} @redbaron1981 Maybe by doing this you can say oh look that kind of hit this random line I drew, so did this bit. That's just ridiculous though. The idea of the support and resistance, as I explained above, is to find those value areas. Those areas where price has moved away from where it "should be" to a different price. And as you'll notice, it's key swing points. There are many areas that you could say well that's kind of a support area or kind of a resistance area. All these levels are doing is showing us a price where there "MAY" be...Ignored
Around a year ago I subscribed to some very advanced software similar to what Nanex is offering. The reason for subscribing was twofold, firstly I wanted to see if there was edge to having this kind of data. Secondly I wanted to get and idea of liquidity structure and to see if there was any correlation between volumes transacted at non significant price levels verses significant or what you will call value areas.
The conclusion of my own studies was that liquidity structure was mostly uncorrelated to price chart structure. Sometimes around highly visible highs and lows there would be an increase in HFT but not to an institutional level of volume, along with certain round numbers. The only time when there was slight correlation was around 52 week highs/lows but that was it. Whether this is due to the placement of support/resistance lines being highly arbitrary, I am not certain but I had seen enough not to have to dig any deeper.
"All these levels are doing is showing us a price where there "MAY" be some orders that will be relevant. Major levels are important and they do have an impact on trading. It's a fact."
Since you say that this is fact i.e a thing that is known or proved to be true, then I would like you to present the evidence you have that support your claim?
