Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

kvn

Support and Resistance

Recommended Posts

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

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites

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 ?

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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)?

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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

Share this post


Link to post
Share on other sites

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:

Share this post


Link to post
Share on other sites
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 ?

Share this post


Link to post
Share on other sites
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 ? ;)

Share this post


Link to post
Share on other sites
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?

Share this post


Link to post
Share on other sites
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

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites
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?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • My wife Robin just wanted some groceries.   Simple enough.   She parked the car for fifteen minutes, and returned to find a huge scratch on the side.   Someone keyed her car.   To be clear, this isn’t just any car.   It’s a Cybertruck—Elon Musk's stainless-steel spaceship on wheels. She bought it back in 2021, before Musk became everyone's favorite villain or savior.   Someone saw it parked in a grocery lot and felt compelled to carve their hatred directly into the metal.   That's what happens when you stand out.   Nobody keys a beige minivan.   When you're polarizing, you're impossible to ignore. But the irony is: the more attention something has, the harder it is to find the truth about it.   What’s Elon Musk really thinking? What are his plans? What will happen with DOGE? Is he deserving of all of this adoration and hate? Hard to say.   Ideas work the same way.   Take tariffs, for example.   Tariffs have become the Cybertrucks of economic policy. People either love them or hate them. Even if they don’t understand what they are and how they work. (Most don’t.)   That’s why, in my latest podcast (link below), I wanted to explore the “in-between” truth about tariffs.   And like Cybertrucks, I guess my thoughts on tariffs are polarizing.   Greg Gutfield mentioned me on Fox News. Harvard professors hate me now. (I wonder if they also key Cybertrucks?)   But before I show you what I think about tariffs… I have to mention something.   We’re Headed to Austin, Texas This weekend, my team and I are headed to Austin. By now, you should probably know why.   Yes, SXSW is happening. But my team and I are doing something I think is even better.   We’re putting on a FREE event on “Tech’s Turning Point.”   AI, quantum, biotech, crypto, and more—it’s all on the table.   Just now, we posted a special webpage with the agenda.   Click here to check it out and add it to your calendar.   The Truth About Tariffs People love to panic about tariffs causing inflation.   They wave around the ghost of the Smoot-Hawley Tariff from the Great Depression like it’s Exhibit A proving tariffs equal economic collapse.   But let me pop this myth:   Tariffs don’t cause inflation. And no, I'm not crazy (despite what angry professors from Harvard or Stanford might tweet at me).   Here's the deal.   Inflation isn’t when just a couple of things become pricier. It’s when your entire shopping basket—eggs, shirts, Netflix subscriptions, bananas, everything—starts costing more because your money’s worth less.   Inflation means your dollars aren’t stretching as far as they used to.   Take the 1800s.   For nearly a century, 97% of America’s revenue came from tariffs. Income tax? Didn’t exist. And guess what inflation was? Basically zero. Maybe 1% a year.   The economy was booming, and tariffs funded nearly everything. So, why do people suddenly think tariffs cause inflation today?   Tariffs are taxes on imports, yes, but prices are set by supply and demand—not tariffs.   Let me give you a simple example.   Imagine fancy potato chips from Canada cost $10, and a 20% tariff pushes that to $12. Everyone panics—prices rose! Inflation!   Nope.   If I only have $100 to spend and the price of my favorite chips goes up, I either stop buying chips or I buy, say, fewer newspapers.   If everyone stops buying newspapers because they’re overspending on chips, newspapers lower their prices or go out of business.   Overall spending stays the same, and inflation doesn’t budge.   Three quick scenarios:   We buy pricier chips, but fewer other things: Inflation unchanged. Manufacturers shift to the U.S. to avoid tariffs: Inflation unchanged (and more jobs here). We stop buying fancy chips: Prices drop again. Inflation? Still unchanged. The only thing that actually causes inflation is printing money.   Between 2020 and 2022 alone, 40% of all money ever created in history appeared overnight.   That’s why inflation shot up afterward—not because of tariffs.   Back to tariffs today.   Still No Inflation Unlike the infamous Smoot-Hawley blanket tariff (imagine Oprah handing out tariffs: "You get a tariff, and you get a tariff!"), today's tariffs are strategic.   Trump slapped tariffs on chips from Taiwan because we shouldn’t rely on a single foreign supplier for vital tech components—especially if that supplier might get invaded.   Now Taiwan Semiconductor is investing $100 billion in American manufacturing.   Strategic win, no inflation.   Then there’s Canada and Mexico—our friendly neighbors with weirdly huge tariffs on things like milk and butter (299% tariff on butter—really, Canada?).   Trump’s not blanketing everything with tariffs; he’s pressuring trade partners to lower theirs.   If they do, everybody wins. If they don’t, well, then we have a strategic trade chess game—but still no inflation.   In short, tariffs are about strategy, security, and fairness—not inflation.   Yes, blanket tariffs from the Great Depression era were dumb. Obviously. Today's targeted tariffs? Smart.   Listen to the whole podcast to hear why I think this.   And by the way, if you see a Cybertruck, don’t key it. Robin doesn’t care about your politics; she just likes her weird truck.   Maybe read a good book, relax, and leave cars alone.   (And yes, nobody keys Volkswagens, even though they were basically created by Hitler. Strange world we live in.) Source: https://altucherconfidential.com/posts/the-truth-about-tariffs-busting-the-inflation-myth    Profits from free accurate cryptos signals: https://www.predictmag.com/       
    • No, not if you are comparing apples to apples. What we call “poor” is obviously a pretty high bar but if you’re talking about like a total homeless shambling skexie in like San Fran then, no. The U.S.A. in not particularly kind to you. It is not an abuse so much as it is a sad relatively minor consequence of our optimism and industriousness.   What you consider rich changes with circumstances obviously. If you are genuinely poor in the U.S.A., you experience a quirky hodgepodge of unhelpful and/or abstract extreme lavishnesses while also being alienated from your social support network. It’s about the same as being a refugee. For a fraction of the ‘kindness’ available to you in non bio-available form, you could have simply stayed closer to your people and been MUCH better off.   It’s just a quirk of how we run the place and our values; we are more worried about interfering with people’s liberty and natural inclination to do for themselves than we are about no bums left behind. It is a slightly hurtful position and we know it; we are just scared to death of socialism cancer and we’re willing to put our money where our mouth is.   So, if you’re a bum; you got 5G, the ER will spend like $1,000,000 on you over a hangnail but then kick you out as soon as you’re “stabilized”, the logistics are surpremely efficient, you have total unchecked freedom of speech, real-estate, motels, and jobs are all natural healthy markets in perfect competition, you got compulsory three ‘R’’s, your military owns the sky, sea, space, night, information-space, and has the best hairdos, you can fill out paper and get all the stuff up to and including a Ph.D. Pretty much everything a very generous, eager, flawless go-getter with five minutes to spare would think you might need.   It’s worse. Our whole society is competitive and we do NOT value or make any kumbaya exception. The last kumbaya types we had werr the Shakers and they literally went extinct. Pueblo peoples are still around but they kind of don’t count since they were here before us. So basically, if you’re poor in the U.S.A., you are automatically a loser and a deadbeat too. You will be treated as such by anybody not specifically either paid to deal with you or shysters selling bejesus, Amway, and drugs. Plus, it ain’t safe out there. Not everybody uses muhfreedoms to lift their truck, people be thugging and bums are very vulnerable here. The history of a large mobile workforce means nobody has a village to go home to. Source: https://askdaddy.quora.com/Are-the-poor-people-in-the-United-States-the-richest-poor-people-in-the-world-6   Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.