Quote:
Originally Posted by daedalus
But the second part of your question is also VERY important. The length of the swing DOES play a key role in the strength of the levels. The bigger the swing, the stronger the levels. Thats why I always say when in doubt go with the biggest swing because it will be the most powerful levels of support and resistance on the chart.
Cheers!
|
Thanks daedalus for that perspective.
Before I was thinking...wow look at that long swing... when at the end of it, and figuring it had a long way to pull back to 61.8, so I would try a counter trend trade, only to get stopped out, or, figuring it was too soon to enter back in the trend as it may pull back on a second try, and then loose out.
Now looking at it this way, it would seem "more probable" that it won't pullback as much (so not to trade during the pullback), and to enter at the 23 or 38 is not too late after all (I tend to chicken out when it trends past 0
).
So do I sound like I know what I'm talking about yet
, if not, pls set me straight
