Price, (Volume), Support, Resistance, Demand, Supply . . .

[dbphoenix]

Incidentally, I perhaps should point out that S/R should be drawn on the charts before the market ever opens, either the night before or the morning of. At the very least, one can use that opportunity to discuss S/R with interested traders to determine whether or not something important may have been missed.

 

[bracke]

Incidentally, I perhaps should point out that S/R should be drawn on the charts before the market ever opens, either the night before or the morning of. At the very least, one can use that opportunity to discuss S/R with interested traders to determine whether or not something important may have been missed.

How many s/r would you draw on the chart

EG ndx appears to have the at 1400, 1300, 1200 would you show all three and how far back would you go 2 years, 5 years, 10 years ?

Would you also draw on the previous day's ohlc ?

Regards

bracke

 

[dbphoenix]

How many s/r would you draw on the chart

EG ndx appears to have the at 1400, 1300, 1200 would you show all three and how far back would you go 2 years, 5 years, 10 years ?

Would you also draw on the previous day's ohlc ?

Regards

bracke

There's no one-size-fits-all answer. S/R are where traders expect to find trades, i.e., activity, so the PDH and PDL are the first places to look if price opens within the PDR. However, there might be something special about the day, such as that price spent the entire afternoon the prv day in a tight range. In that case, the entire range becomes potential S or R (Wednesday, for example, the NQ spent three hours between 1346 and 1355; Thursday afternoon, it found S at 1346). Or the PDL or PDH may align with S/R that go back further than the PD.

So, aside from the PDH and PDL, where is price repeatedly being turned back? Remember this isn't about lines and points and mechanical definitions; it's about traders and the trades they've made. If breaking S, for example, means that a lot of traders are going to be underwater, it's probably going to be important. If not, probably not. How important is ten-year-old S?

 

[bracke]

How important are the PDH & PDL as s/r

There appear to be many s/r levels based on PDH & PDH, Moving Averages, s/r from months or years previous, fibonacci, waves etc, etc.

Which are the ones that really count ?

Regards

bracke

 

[dbphoenix]

How important are the PDH & PDL as s/r

There appear to be many s/r levels based on PDH & PDH, Moving Averages, s/r from months or years previous, fibonacci, waves etc, etc.

Which are the ones that really count ?

Regards

bracke

Price, not indicators, provides potential S/R. And there are only one PDH and PDL.

As to whether or not they're important, you just have to see what the activity is when you get there. If there isn't any, then they're not important.

 

[bracke]

So if the price moves out of the previous day's trading range witout much difficulty the PDH & PDL were not important s/r.

By looking on the charts ( various time spans ) it is possible to idenify where the price meets s/r by the number of times it has bounced off of them ?

If the price is not near an identified s/r level what is used to determine the piossible direction of the price. Would one use channels of s/r and trade accordingly.

Regards

bracke

 

[TheBramble]

In talking about periods of time (i.e. how far back) were specific levels of Support or Resistance established, isn't the number of times these levels are tested of equal importance?

Sure a PDH/PDL and 52wk HI/LO are going to be obvious candidates, but if 49.95 has been hit and held 20 times in the last 6 months, I'm going to be very interested if it goes close to that level today, regardless of where it was yesterday.

As for moving easily through PDR, that's good enough indication of potential further movement. An easy move (say) through PDH would in principle set the PDH as a Support level. Whether of not it's tested for the rest of the trading day, it would still be a potential Support level.

 

[triplepack]

One interesting point I've noticed during the trading day , on a stock I may have followed some days /weeks ago s/r lines have been left on the chart and as the current day price action moves towards them hey presto it bounces of of it.
Obviously the market has a memory at these levels. I often see it in the $Indu previous s/rs keep controlling the price movement.

dbphoenix, do you have any ideas on the numbers which Chartman has identified on the $indu namely 32 and 64. These appear to be regular roadbumps for either pausing for breathe or reversing on? Interested in your observations on this.

Regards

Triplepack

 

[dbphoenix]

dbphoenix, do you have any ideas on the numbers which Chartman has identified on the $indu namely 32 and 64.

Sorry, I have no idea what that means. :?:

 

[bracke]

One interesting point I've noticed during the trading day , on a stock I may have followed some days /weeks ago s/r lines have been left on the chart and as the current day price action moves towards them hey presto it bounces of of it.
Obviously the market has a memory at these levels. I often see it in the $Indu previous s/rs keep controlling the price movement.

dbphoenix, do you have any ideas on the numbers which Chartman has identified on the $indu namely 32 and 64. These appear to be regular roadbumps for either pausing for breathe or reversing on? Interested in your observations on this.

Regards

Triplepack

Triplepack are you able to post a chart showing the dow s/r you refer to please.

Regards

bracke

 

[dbphoenix]

In talking about periods of time (i.e. how far back) were specific levels of Support or Resistance established, isn't the number of times these levels are tested of equal importance?

See post 85 [now 73].

 

[triplepack]

Chartman's 32-64 s/r pivots.

I just quickly went through some of the old postings and here are a few examples.
I find that keeping an eye on the $indu when in a trade will give a good warning of a roadbump up ahead.
sometimes it'll stop the move or just act to give it a brief respite in the form of a flag.
As Chartman says , it doesnt always work but once you can recognise it and be aware, it appears to be a mighty powerful form of S/R. Just like knowing a previous days highor low.
As a lot of stocks follow the movement of the Dow when the indu is approaching these points you stand by
ready.

http://www.trade2win.com/boards/attachment.php?attachmentid=8937
http://www.trade2win.com/boards/attachment.php?attachmentid=8972
http://www.trade2win.com/boards/attachment.php?attachmentid=8767
http://www.trade2win.com/boards/showthread.php?t=11024&page=3&pp=15

dbphoenix have you come across this in your trading experience?

Chartman I do hope you dont mind me bringing it up off the Dow thread, apologies in advance if you do.

Best Regards

Triplepack

 

[dbphoenix]

As Chartman says , it doesnt always work but once you can recognise it and be aware, it appears to be a mighty powerful form of S/R.

What does "it" refer to, e.g., "it" doesn't always work?

 

[triplepack]

The "it " is the level on the chart on and around the 32/64 points e.g. 9832 or 10164 10332 etc.
Areas where these points are, the 32/64 often come in with short term (using a 1 min chart )s/r and can give a good warning of a reversal or short term consolidation .

The links to CM's posts show some examples. He uses them throughout his trading .
Check out his threads and intraday charts at the end of trading.
Knowing that at these numbers within the range that he is trading, there is a good probability that a reversal may occur or if it slices past , the likelihood/probability is that it will motor on towards the next 32/64 area. I view them as signposts or roadbumps like whole numbers or the 50c levels on price.

Incorporating this into other trades on stocks, it can give a clue as to when a support level which is not on the stocks chart but the index itself may cause a stocks progress to be affected.
As for it not always working, well nothing is certain but it does seem to keep showing itself up with a degree of regularity.
As I am sure your trading experience is considerable compared to mine I was curious if you had come across this before. Worth a look I feel.

If I dont come back to reply later it's cos I'm away for about 10 days on hols.

Good trading all

Cheers

Triplepack.

 

[dbphoenix]

The "it " is the level on the chart on and around the 32/64 points e.g. 9832 or 10164 10332 etc.
Areas where these points are, the 32/64 often come in with short term (using a 1 min chart )s/r and can give a good warning of a reversal or short term consolidation .
.

Sorry, I don't see how these are related to S/R at all, at least insofar as S/R is provided by price. But if another thread addresses all of this, that will be a good resource for whoever might be interested.

 

[Salty Gibbon]

The interaction of price and volume can be readily interpreted by the application of common sense. I have taught myself to successfully trade simply by " reading" the price / volume story from the live bar chart of any particular stock.

Simply by looking at the up bars, down bars, opening and closing levels on each bar and the related volume levels, I am able to trade with a very high percentage of success.

I do not consciously look for chart patterns, support, resistance etc. I just trade what I see in the unfolding story which appears before my very eyes.

I did read " Principles of Tape Reading" by Graifer & Schumacher though plus some threads on this website related to Price and Volume.

I took the knowledge, twisted it around a few times to suit my style and applied it successfully in my trading.

Price and Volume is nearly everything imho but the understanding of it is no big deal and should not be made unnnecessarily complicated .

 

[kent]

The interaction of price and volume can be readily interpreted by the application of common sense. I have taught myself to successfully trade simply by " reading" the price / volume story from the live bar chart of any particular stock.

Simply by looking at the up bars, down bars, opening and closing levels on each bar and the related volume levels, I am able to trade with a very high percentage of success.

I do not consciously look for chart patterns, support, resistance etc. I just trade what I see in the unfolding story which appears before my very eyes.

I did read " Principles of Tape Reading" by Graifer & Schumacher though plus some threads on this website related to Price and Volume.

I took the knowledge, twisted it around a few times to suit my style and applied it successfully in my trading.

Price and Volume is nearly everything imho but the understanding of it is no big deal and should not be made unnnecessarily complicated .

Well said! ------ It ain`t rocket science.

 

[TheBramble]

Price and Volume is nearly everything imho but the understanding of it is no big deal and should not be made unnnecessarily complicated .

Salty, can you sum up your understanding in an uncomplicated way?

I think you've given us a hint above, but I'd appreciate your confirmation.

 

[Salty Gibbon]

Tony

When you see a down bar with a large spread and high volume closing more than half-way up the bar, followed by an up bar with narrowish spread closing on the top of the bar on relatively low volume compared to the preceding bar, what would your immediate thought be ?

 

[LevII]

TheBramble

There is a book, the undeclared secrets that drive the stock market, by Tom Williams, on this subject if it interests you.

Problem is it is so badly written and riddled with errors as to be really hard work.

Also try www.tradeguider.com

There is also a transcript of a chat the other night on elite.

HTH

LII