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kvn

Support and Resistance

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Yes, I use quite a bit of Andrews myself. But earlier in this thread, they were harassing me about using lines that are not horizontal. :hmpf:

 

Wyckoff employed Trendlines but as Db has pointed out a number of times there is great deal of confusion regarding support/resistance, demand/supply and trendlines.

 

Anyway a colleague sent some links , lots of info. on support, resistance, price, vol etc.:

 

http://www.trade2win.com/boards/price-volume/11104-price-volume-support-resistance-demand-supply.html

 

http://www.trade2win.com/boards/price-volume/29082-price-volume-support-resistance-demand-supply-abridged.html

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Wyckoff employed Trendlines but as Db has pointed out a number of times there is great deal of confusion regarding support/resistance, demand/supply and trendlines.

 

Anyway a colleague sent some links , lots of info. on support, resistance, price, vol etc.:

 

http://www.trade2win.com/boards/price-volume/11104-price-volume-support-resistance-demand-supply.html

 

http://www.trade2win.com/boards/price-volume/29082-price-volume-support-resistance-demand-supply-abridged.html

 

The second link is an abridgement of the original thread (the first link). It's available in pdf form and was posted to my blog, but it's disappeared and I'm unable to upload it again. Will keep trying.

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Since this is the Technical Analysis section, there should be other interpretations of S&R allowed other than the one that is preached at the Dbpheonix or Wyckoff school of professional trading, right ?

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You have a good thread going here. I’m also a fan of confluence but feel the first S/R should start with price itself. Congestion areas where a high level of trading activity has taken place. VAPs do a good job of spotting these unless the PA created multiple areas of distribution that VAPs may miss. Now, the use of your fibs, pivots, etc. can form confluence with these areas. This may offer some reduction in the number of areas one must focus on. Just a thought

 

Does VAP stand for Volume at Price ? We usually use term Volume Histogram or Volume Profile here. Also we use the term PVP for Peak Volume Price.

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Since this is the Technical Analysis section, there should be other interpretations of S&R allowed other than the one that is preached at the Dbpheonix or Wyckoff school of professional trading, right ?

No other interpretations have been "disallowed".. A number of us trade using similar views of the market, but as in Db's intro (which I believe is in the free sample), there's many paths to success.

 

I have done a good amount of statistical analysis, and historical horizontal support / resistance areas do have a greater "price resistance" (movement of price past them) than both random entries and trend lines. However, if trend lines acting as S/R works for you and makes you profitable, I can't say anything bad about it. It's my opinion (and only my opinion) that trend lines work at S/R often because you are entering on the right side of the trend, so you get to trade the longer traversal. That said, it isn't an exact science, and I could completely be wrong and/or ill informed.

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Since this is the Technical Analysis section, there should be other interpretations of S&R allowed other than the one that is preached at the Dbpheonix or Wyckoff school of professional trading, right ?

 

The first link has over 100 pages, and yet he is busy trying to upload the second link with, god knows, how many more pages. I was teasing him about jamming all that stuff down our throats.

It would be nice if Dbpheonix or one of his disciples can provide a one or two page summary ,so us layman get a glimpse how the material might help in our trading before we decide if we want to pursue further.

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The first link has over 100 pages, and yet he is busy trying to upload the second link with, god knows, how many more pages. I was teasing him about jamming all that stuff down our throats.

It would be nice if Dbpheonix or one of his disciples can provide a one or two page summary ,so us layman get a glimpse how the material might help in our trading before we decide if we want to pursue further.

 

I haven't mentioned the Wyckoff Forum at all, and I mentioned my blog only in reference to the t2w links which Bearbull provided. If someone wants to go there to read the material, that's fine. If no one does, that's also fine. I'm hardly trying to jam anything down anyone's throat, but I do make the material available to whoever is interested.

 

As to the "one or two page summary", exactly what is it that you'd like a one or two-page summary of? Wyckoff's approach? If so, see the Introduction to the Wyckoff Forum. If you're looking for something else, I'll try to oblige.

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Hi All,

i like the use of trendlines, they have been used since the Phoecians used them thousands of years ago. A couple of good traders named Babson and Andrews, used Pitchforks. Babson made 50million dollars and in todays time that would be roughly 500 million. You can google free info on how to trade the pitchforks. They have a 80% chance to return to the medium line. Their is als Action and Reaction lines. And of course just plain old trendlines work as well especially where you have multiple touches.

 

Best of luck traders.

 

windatback

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I have done a good amount of statistical analysis, and historical horizontal support / resistance areas do have a greater "price resistance" (movement of price past them) than both random entries and trend lines. However, if trend lines acting as S/R works for you and makes you profitable, I can't say anything bad about it. .

 

But you forgot that any three year old can draw a horizontal S/R line, but it takes a master to draw a proper trendline.

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But you forgot that any three year old can draw a horizontal S/R line, but it takes a master to draw a proper trendline.

Would you mind demonstrating, then? I don't think anyone's attacked the use of trendlines as S/R.. I have said what I use (after you asked) and stated my personal opinion, but that doesn't mean someone can't profit nicely from them.

 

How do you trading using them? What rules validate/invalidate trendlines for you? What is considered a breakout (and are they tradeable)? A bounce (ditto)?

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The reason this S/R worked so well for kvn is not because it is horizontal but because it had multiple touches.

 

attachment.php?attachmentid=7346&stc=1&d=1216688012

 

 

If a level was validated several times, the flip will be more reliable afterwards... my 2 cents, cheers Walter.

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Would you mind demonstrating, then? I don't think anyone's attacked the use of trendlines as S/R.. I have said what I use (after you asked) and stated my personal opinion, but that doesn't mean someone can't profit nicely from them.

 

How do you trading using them? What rules validate/invalidate trendlines for you? What is considered a breakout (and are they tradeable)? A bounce (ditto)?

 

Since you and Dbpheonix may have been educated in the Wyckoff tradition.

You pull up a chart that shows either a spring or upthrust that had been formed. You show me where you would enter and I will show you how I would enter with a trendline.

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But you forgot that any three year old can draw a horizontal S/R line, but it takes a master to draw a proper trendline.

 

I disagree. If it were that easy, everybody would be seeing S/R at the same place, but that's not the case.

 

If "any three year old can draw horizontal S/R", than I'm sure you won't mind showing me where the important S/R levels are on the attached charts :)

 

7347d1216708873-support-and-resistance-nq_30min.gif?stc=1

 

attachment.php?attachmentid=7348&stc=1&d=1216708839

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The job of the Trendlines is to indicate the direction & angle of the Trend, vast majority of the time when they appear to offer support or resistance is due to the fact that price found support or resistance at that price level(to the left) as depicted in the attached (red lines), these are from the price action observed in the past few days(support) and this morning(resistance)

 

Think it would be far more productive to drop the ego , avoid controversy and engage in constructive dialogues and exchange of trading ideas, otherwise it would merely be a repeat of what went on in VSA threads a few months back:crap:

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I disagree. If it were that easy, everybody would be seeing S/R at the same place, but that's not the case.

 

If "any three year old can draw horizontal S/R", than I'm sure you won't mind showing me where the important S/R levels are on the attached charts :)

 

 

A three year old can see it if you add the volume histogram to the same chart ? If you want see more detail you zoom into on the next lower timeframe, another word if your chart cover one whole trading day, I would also zoom in on the Volume histogram for every single hour. I think if I remember correctly that is how Kiwi uses S/R

If not, then why would people even bother to study market profile ?

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Hi All,

i like the use of trendlines, they have been used since the Phoecians used them thousands of years ago. A couple of good traders named Babson and Andrews, used Pitchforks. Babson made 50million dollars and in todays time that would be roughly 500 million.

windatback

 

I guess he can afford to live on a private island anywhere in the world ? ;)

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A three year old can see it if you add the volume histogram to the same chart ? If you want see more detail you zoom into on the next lower timeframe, another word if your chart cover one whole trading day, I would also zoom in on the Volume histogram for every single hour. I think if I remember correctly that is how Kiwi uses S/R

If not, then why would people even bother to study market profile ?

 

I didn't talk about market profile nor volume... Suppose the chart is from FX where only tick volume is available, what would you do then?

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The job of the Trendlines is to indicate the direction & angle of the Trend, vast majority of the time when they appear to offer support or resistance is due to the fact that price found support or resistance at that price level(to the left) as depicted in the attached (red lines), these are from the price action observed in the past few days(support) and this morning(resistance)

 

 

Hey, nothing wrong with that. It is just one view. This is the Technical Analysis Section and not the Wyckoff Forum.

As a matter of fact, the Chimp basically agree with some of my interpretations such as the angled line and multiple touches that you guys have a problem with.

And he is spending most of his time on the Banana Island nowadays.:o

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i may have read it on tl,it doesn't matter where,some technician wrote that trendlines are to be thought of more as crayon lines,they aren't drawn with a sharp pen,i use both trendlines and horizontals and they each have their specified uses as do all tools,intraday the diagonal tl's work great ,the horizontals not so well,on a daily or weekly chart the horizontals work,i don't see any reason for argument here,screwdrivers work better on screws than nails,there was a lot of this hairsplitting over in trad2win and i notice a lot of people have moved over here ,please don't restart this posturing and grunting ,it does little for trading,and even less for the trad lab,it just makes for a lot of reading to find a tidbit of fact

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You reminded me of the other point I was going to make! Start with the big picture maybe the daily a 240minute hourly whatever to determine the major areas, it's easy to get drawn into the minor vibrations if not careful. Of course when you are in a major area then drill down to a faster chart to get a bit more fitness or to actually trigger entries.

 

I do it myself far too often...get drawn into the smaller undulations and essentially scalping back and forth smaller swings.

 

Blowfish-

I'm working to determine the best chart to use to determine my S/R. My personal trading method is:

1. I look at the Daily and the 4 Hour Charts.

2. I trade off a 4 hr Chart (with 1 hr charts for entry)

 

I'm working to possibly look at Weekly charts to plot S/R but I have a fear this is TOO far out. A Weekly chart seems to have some merit to plot S/R, but I'm not looking to get someplace 500 pips away any time soon.

 

Any thoughts?

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