So it’s an interesting thing to see certain price point levels get a reaction. Some classify it as support/ resistance/ some classify it as supply and demand… Re pricing/ market maker levels… I’m sure there is a million names for it. My thing is this, do you guys believe in this kind of theory? its crazy how there are so many different theories on what these levels consist of…market orders or the algo simply re tracing back there…would love to get your guys take on the “levels” that we see in today’s markets…
Just part of a whole plan , yes S&R lines are important, for me they help road map a trade
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traditional support and resistance tends to get traders taken out though… Market always runs the stops and liquidity around those levels…
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Rather Support and Resistance support are very important in understanding what and how the market are reacting toward the changes of the price and vice versa
Hence why its a map not a entry point
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Levels are a really important benchmark in market analysis. So yes, it definitely requires detailed research and competent use.
you’re actually right, in fact
Think of the market as an auction house - the auctioneer (market maker) seeks where he can best do business.
So a rare coin is for sale, current market valuation is maybe 1000 - not much point in seeking buyers at say 777? - there will be no pre-order buys there - maybe 750, or 700 or 780 - but not at a random number of 777.
It really is that simple - sell/buy orders sit at levels where there is liquidity - i…e likelihood of more buy/sell orders.
look closely at the crosses - you will see the interaction of these orders.
It’s a theory that works, if you understand how to mark up and read price action then you’re halfway there to becoming a successful trader.
I’ve never plotted a support resistance level in my life. No plan on starting now.
Although that does make me some kind of freak in the trading community.
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You can find out the whole momentum of the market through support and resistance.
Love the “levels” the market tends to run… Big banks or what not running these levels? potentially. Or it could all be random…I however don’t believe in randomness