# Why we say using support and resistance levels which other traders might use is good?

i can’t understand that,
for example in the school lesson Combining Fibs with Support and Resistance | Fibonacci | Elementary
we say:
"…Second, since we know that a lot of traders also use the Fibonacci tool, they may be looking to jump in on these Fib levels themselves.

With traders looking at the same support and resistance levels, there’s a good chance that there are a ton of orders at those price levels…"

If a lot of guys are buying when im buying how is a good thing? if most of the users for example buying in a specific point then the trend will change, am i right? so why is an advantage?

Because the size of the orders that cause those points of interest absolutely dwarf the speculative side of the market.

Plus, if everyone is buying, price will likely go up. At least for a little bit

if everyone is buying, price will likely go up.
why?

[QUOTE=“CDrosos;586459”]if everyone is buying, price will likely go up. why?[/QUOTE]

If you have 5 guys pushing a car, the car will likely go forward. Now add to that 2 guys pushing the car the opposite direction (backwards), it’s 5 vs 2 so the car is still likely to go forward. Now apply that analogy to the price of a pair.

[QUOTE=“CDrosos;586438”]If a lot of guys are buying when im buying how is a good thing? if most of the users for example buying in a specific point then the trend will change, am i right? so why is an advantage?[/QUOTE]

You’re assuming that they’re buying in at the end of a trend: a Fibs level & horizontal level may meet & get hit as price retraces & more people may be buying in-line with the trend & therefore strengthening it.

Now I’ll make an assumption here in that I’ll assume that the other traders in question are profitable & successful: why would you not want to be buying at the same time as them? Strength in numbers! If everyone is buying & pushing price higher, you really don’t want to be the guy that clicks the “sell” button.

but if everyone is buying who is selling? and if its obvious in a point to buy who is selling?

Not everybody who is in the market is following the same method.

At the levels at which we trade, usually below \$10/pip there will be
a counter party to the trade.

Therefore if enough traders are looking at the same level (S/R, fib)
this can, which has already been stated, move the market for maybe
a short time. Then if enough of the savvy money gets behind the move
then boom up or down she goes.

This can be seen at certain levels being hit then pulling away then going
back, an analogy of a bus at a terminal which pulls away when it isn’t full
& keeps coming back to pick up more passengers until it is full then
continues on it’s journey.

Of course in trading nothing is nailed on/works every time. I feel this is
what confuses some newbies they expect set-ups to perform the same