Support & Resistance.
Aug 09, 2019 at 17:36
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12 Replies
Aug 09, 2019 at 17:36
Support levels are made as a market turns higher. Along these lines, on the off chance that a market is moving lower for instance and it, at that point alters course and starts moving higher, it either has made a degree of support or skipped off a formerly existing degree of support. Resistance levels are made as a market turns lower. In this way, on the off chance that a market is moving higher for instance, and it at that point altered course and creatures moving lower, it either has made a degree of resistance.
Aug 14, 2019 at 07:02
Both support and resistance are an important tool of technical analysis.
Support prevents the price from falling further. It is a point on chart where the trader expects maximum demand in terms of buying. Whenever price falls to support level it is likely to bounce back. This level is always below the current market price.
Resistance is opposite of support . It prevents the price from rising further. At this point on the chart traders expect maximum supply in terms of selling. This level is above the current market price.
So the idea is to buy near support in up trends and sell / short sell near resistance in downtrends.
Support prevents the price from falling further. It is a point on chart where the trader expects maximum demand in terms of buying. Whenever price falls to support level it is likely to bounce back. This level is always below the current market price.
Resistance is opposite of support . It prevents the price from rising further. At this point on the chart traders expect maximum supply in terms of selling. This level is above the current market price.
So the idea is to buy near support in up trends and sell / short sell near resistance in downtrends.
Aug 14, 2019 at 09:09
That is the idea but in practice I find it very difficult to trade S+R . There are so many fake outs. it is easy to find S+R trades in hindsight but in live market there are too many losing trades. I prefer momentum strategies these are easier to identify and more reliable IMHO
Aug 17, 2019 at 05:36
Support and resistance are the most important parts of technical analysis. Support can be thought as the floor price after which the prices bounce back and start rising and resistance is like a ceiling price, touching which the prices start to fall again to reach the next support level. These two together can help a trader make a winning strategy and secure high returns. There are various methods by which you can choose a price to be a resistance or support level.
Medlem sedan Apr 18, 2017
920 inlägg
Aug 17, 2019 at 15:17
jakes90 posted:
Support and resistance are the most important parts of technical analysis. Support can be thought as the floor price after which the prices bounce back and start rising and resistance is like a ceiling price, touching which the prices start to fall again to reach the next support level. These two together can help a trader make a winning strategy and secure high returns. There are various methods by which you can choose a price to be a resistance or support level.
True; support & resistant tool is the most important tool! I basically mark the market trend based on the Support/Resistant levels! In this case, D1 is my 1st choice!
Aug 18, 2019 at 08:53
The triangle sharp ends are the averages of the 4H divergences. What are the support and resistance levels, if not these?
The reason for a divergence is that the trajectory of an incline/decline was broken by an accumulation / distribution, and since there are now participants holding the bag – they are under water ever since they opened, they would likely want to get rid of their unwanted positions for a break even, plus those, whom are in gains, may just have their 1-pip beyond the opening price protective stop loss placed. These events may tip the fragile balance of the scale that has been fueling the progress in a direction.
If you can point out these levels before hand then you can prepare on time to make the necessary changes.
The reason for a divergence is that the trajectory of an incline/decline was broken by an accumulation / distribution, and since there are now participants holding the bag – they are under water ever since they opened, they would likely want to get rid of their unwanted positions for a break even, plus those, whom are in gains, may just have their 1-pip beyond the opening price protective stop loss placed. These events may tip the fragile balance of the scale that has been fueling the progress in a direction.
If you can point out these levels before hand then you can prepare on time to make the necessary changes.
macdulio@
Medlem sedan Apr 18, 2017
920 inlägg
Aug 26, 2019 at 15:39
Macdulio posted:
The triangle sharp ends are the averages of the 4H divergences. What are the support and resistance levels, if not these?
The reason for a divergence is that the trajectory of an incline/decline was broken by an accumulation / distribution, and since there are now participants holding the bag – they are under water ever since they opened, they would likely want to get rid of their unwanted positions for a break even, plus those, whom are in gains, may just have their 1-pip beyond the opening price protective stop loss placed. These events may tip the fragile balance of the scale that has been fueling the progress in a direction.
If you can point out these levels before hand then you can prepare on time to make the necessary changes.
Are you using divergence trading strategy? I have horrible experience on this strategy; even I tried with H4!
Medlem sedan Aug 27, 2017
994 inlägg
Sep 01, 2019 at 16:02
Divergence is very much popular trading strategy; as I see it works better on the longer time frame; what was your time frame then?
Sep 05, 2019 at 09:58
Abhijeet posted:
That is the idea but in practice I find it very difficult to trade S+R . There are so many fake outs. it is easy to find S+R trades in hindsight but in live market there are too many losing trades. I prefer momentum strategies these are easier to identify and more reliable IMHO
You can use any moving average indicator to determine levels more accurately, or ichimoku. Taking into account levels can be useful for predicting the correction or as an indicator of the breakdown of a trend channel.
The AI is the future.
Medlem sedan Sep 06, 2019
11 inlägg
Sep 06, 2019 at 11:35
If find MA an other indicator are useless to help with accuracy. I back test loads of strategy and always they suck
Sep 07, 2019 at 06:51
AniLorak posted:jakes90 posted:
Support and resistance are the most important parts of technical analysis. Support can be thought as the floor price after which the prices bounce back and start rising and resistance is like a ceiling price, touching which the prices start to fall again to reach the next support level. These two together can help a trader make a winning strategy and secure high returns. There are various methods by which you can choose a price to be a resistance or support level.
True; support & resistant tool is the most important tool! I basically mark the market trend based on the Support/Resistant levels! In this case, D1 is my 1st choice!
That’s a nice choice. Happy trading!
Medlem sedan Apr 18, 2017
920 inlägg
Sep 28, 2019 at 17:04
jakes90 posted:AniLorak posted:jakes90 posted:
Support and resistance are the most important parts of technical analysis. Support can be thought as the floor price after which the prices bounce back and start rising and resistance is like a ceiling price, touching which the prices start to fall again to reach the next support level. These two together can help a trader make a winning strategy and secure high returns. There are various methods by which you can choose a price to be a resistance or support level.
True; support & resistant tool is the most important tool! I basically mark the market trend based on the Support/Resistant levels! In this case, D1 is my 1st choice!
That’s a nice choice. Happy trading!
Thanks a lot mate; I am sure you know the value of support/resistant levels! Cheers!
Medlem sedan Apr 18, 2017
718 inlägg
Sep 30, 2019 at 14:24
AniLorak posted:jakes90 posted:AniLorak posted:jakes90 posted:
Support and resistance are the most important parts of technical analysis. Support can be thought as the floor price after which the prices bounce back and start rising and resistance is like a ceiling price, touching which the prices start to fall again to reach the next support level. These two together can help a trader make a winning strategy and secure high returns. There are various methods by which you can choose a price to be a resistance or support level.
True; support & resistant tool is the most important tool! I basically mark the market trend based on the Support/Resistant levels! In this case, D1 is my 1st choice!
That’s a nice choice. Happy trading!
Thanks a lot mate; I am sure you know the value of support/resistant levels! Cheers!
No doubt on it; support/resistant is the best tool to identify the market trend!
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