Can someone elaborate on this a bit more please
I don’t understand it fully
Thank you!
I don’t think it means anything particularly profound or significant, that you’re missing.
It’s just an observation that S/R levels tend not to be accurate. If you look at the previous/recent S/R levels on (say) a 1-hour chart, even the ones that are repeatedly “respected” by price over the next day or two or three will often turn out to be 5-10 pips “away from the line”. In other words, they’re approximate.
I don’t think there’s very much more than that principle to “elaborate”?
And welcome to the forum.
Thank you very much for the explanation !
Agree with lexys (as I mostly seem to). People occasionally say S/R levels should be drawn with crayons, not pencils.
You’ll sometimes see S/R levels described to the 4th decimal place. That’s true but ridiculous to take literally. The reason is, if the market believes price might bounce at a certain price, say only 10 pips off from where we are, a section of the market will not wait, they will jump in and trade off that expectation, thinking, why wait? They can generate enough volume to make price bounce 5-10 pips off the line.
I like it … I’ll dig out my old oil pastels (it’s just wiping them off the screen that’s the problem …).
An S/R level is a price zone or range, not a specific price point.
Support and Resistance levels are not exact numbers because the price it may jump or slip slightly above or below the specific line.
Next you’ll be telling us ice can be melted and reused as water
2 Likes
Maybe the author of this little saying doesn’t have exact numbers for S/R but if you want to have an appealing risk reward ratio that you can depend on, putting in small stops compared to your possible profits, then you had better have them. Obviously you won’t get them from those who think it isn’t possible. You will only be really good at this by going against the accepted cliches in every area from chart analysis to money management.
The support and resistance levels are relative indications, not exact ones.
All you did was repeat the thread title. And direct it to me.
Why would you be so dumb bro???
3 Likes
I was thinking the same, when I saw the post earlier today (and was wondering whether you’d reply). But the contribution was on a par with many of his others. 