In order to resolve a long standing ‘dispute’ I like some opinions on this:
When would YOU ‘deem’ that support or resistance has been broken?
Let’s say that you’ve clearly identified a line of support or resistance.
Would you ‘deem’ that support or resistance has been ‘broken’ simply UPON INTRADAY PENETRATION of such support or resistance OR upon a CLOSE below or above such support or resistance?
In addition:
While I have no doubt in my own mind that the CLOSE is ‘all important’ for equities and commodities do you believe (depending on your answer to the above of course) that this applies to trading forex pairs given the fact that there really is ‘no close’ i.e. unlike with equities and commodities which open and close at given times forex is really traded 24/7 (24/5???) and different brokers in different timezones will have different closing prices.
[quote=dpaterso;57584]When would YOU ‘deem’ that support or resistance has been broken?
For me a break and a failed retest is my signal to take it seriously
after a candle has breached a major s/r level when a new candle opens, thats when it is officaly broken to me.
Hey,
Thanks you two.
Tony:
Would you mind explaining your ‘take’ in just a little bit more detail for me i.e. I don’t want to misunderstand what you’re saying (from what I understand at THIS point you’re describing first what I would call a ‘penetration’ i.e. an initial ‘penetration’ but then a retractment intraday but then I’m not sure what you’re saying when you refer to a ‘retest’. I mean I know what a ‘retest’ IS but in what context are YOU using it).
(I see that ‘post count’ is falling behind my old friend)!!! :p!!!
johnnykanoo:
You’re describing what to ME is a ‘close below support or above resistance’ right (which I’m 100% in agreement with for EQUITIES).
[quote=dpaterso;57661]Hey,
Thanks you two.
Tony:
Would you mind explaining your ‘take’ in just a little bit more detail for me context are YOU using it).
(I see that ‘post count’ is falling behind my old friend)!!! :p!!!
just not as prolific as you!
This chart is the current GU 4H. The resistance has been penetrated to the upside and is now being subject to a retest. If it holds at this level and moves away upwards I would deem the resistance to have been broken. In the absence of a retest I would use a new trough as evidence that the uptrend in this case was still intact
Thanks Tony,
I THINK I’ve ‘got you’.
I couldn’t help but notice that you have what appears to be Stochs on the bottom of that chart with a line drawn which I’m assuming you’re using to indicate support. Now FUNNILY ENOUGH that’s EXACTLY WHY I’m asking this question here i.e. I can draw the same lines of support and resistance on Wilder’s ASI BUT the ‘gazillion dollar question’ is would you enter a trade or stop and reverse upon an IMMEDIATE PENETRATION of that line or only after a CLOSE BELOW that line!!! THAT is the ‘issue’ that I’m trying to resolve!!!
The line on the stoch is divergence.
Good morning,
Yes daydreamer65: you’re right (and I should have noted that I was aware of the difference) i.e. it was just the ‘concept’ that I was asking about.
To put it another way:
I’ve attached a daily chart of GBP/NOK with the ASI shown (it’s not necessary to be familiar with the ‘workings’ of the ASI for all intent and purpose here). The red lines on both the chart and the ASI are indicative of (where I’m concerned anyway) support and resistance is / was. Again my question is: at what point would YOU have deemed that either support or resistance had been broken? Three days (bars) back on the chart resistance had been broken (one way / method or another). My question is this: would you have ‘deemed’ resistance to have been broken THE INSTANT that the bar three days (bars) back on the chart PENETRATED the red resistance line OR would you have ‘deemed’ that resistance had been broken ONLY ONCE THAT BAR HAD CLOSED AFTER penetrating that red resistance line? Needless to say there is a VAST difference between the two ‘takes’ i.e. this chart is a FINE example. If you ‘deemed’ resistance to have been broken only upon PENETRATION of the red resistance line then (if dictated by your trading system whatever it may be) you would have gone LONG UPON PENETRATION of the red resistance line and look what has happened so far. On the other hand if you ‘deemed’ resistance to have been broken only upon a CLOSE above the red resistance line then of course the scenario is totally different i.e. you’d not BE in a long trade trade right now. (I must reiterate that it’s not the ‘workings’ of the ASI that I’m trying to ‘fathom’ here but purely when YOU would ‘deem’ support or resistance to have been broken).
As a matter of fact (now that I think about it after clearing the early morning cobwebs from the mind):
Tony:
Did you not buy ‘the book’??? I seem to remember you doing so but I’ve never heard anything from you about it since. If you DID buy it AND READ IT (LOL!!!) then you’ll probably know WHY I’m trying to get a definitive answer to this i.e. it relates to the ‘Swing Index System’ and for some or the other reason Wilder APPEARS (to me anyway) to not be consistent in his entry and SAR points for that system and it’s driving me NUTS!!! ENTRY is apparantely when you get an ASI CLOSE above or below a HSP or LSP but your SAR is placed IMMEDIATELY after the formation of a HSP or a LSP. This is not making sense nor working for me I’m afraid (many ‘whipsaws’) and I’m just trying to make sure I’m not interpreting this incorrectly. The big problem is that the text (in some cases) seems to conflict with the ‘red pages’ for the system which in turn seem to conflict with the ‘work sheet’ and associated example / chart for the system.
(As a matter of fact Tony: I NOW remember us ‘joking around’ about the diagrams for this VERY SAME SYSTEM back then)!!!
Anyway: again I must add (and / or stress) that my question is NOT ‘system specific’ i.e. this is ‘back to basics’ really.
THANK YOU!!!
I’m assuming you were pointing me in the direction of Jocelyn’s post (which I now read and ‘digested’)!!!
I think that MAYBE I should go through that thread myself and ‘take a look see’. It MAY just serve to ‘perk up’ my ‘Wilder stuff’!!!
Thanks again!!!
[QUOTE=tonymand;57728][quote=dpaterso;57661]Hey,
Thanks you two.
Tony:
Would you mind explaining your ‘take’ in just a little bit more detail for me context are YOU using it).
(I see that ‘post count’ is falling behind my old friend)!!! :p!!!
just not as prolific as you!
This chart is the current GU 4H. The resistance has been penetrated to the upside and is now being subject to a retest. If it holds at this level and moves away upwards I would deem the resistance to have been broken. In the absence of a retest I would use a new trough as ee that the uptrend in this case was still
I was just about to reply to this thread until I realized it was created in 2008… Oh wait. Damnit! >_<
No reason not to reply on this thread it is still a useful question & answer session.
Also it was refreshing to see that the main protagonists are still around on these
boards, maybe not posting as much these days but still here.
