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Registered User
Joined: 9/20/2005
Posts: 6
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Other than drawing a horizontal line, what are ways to spot support and resistance points?
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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That's the type of interpretation question the trainers can't answer. I'll move this to the Stock and Market Talk Forum where other traders will be more likely to see it.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 4/8/2005
Posts: 9
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Sometime the 50 or 200 day moving
averages are resistance points because
so many people trade with them. lepaul
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Registered User
Joined: 3/24/2005
Posts: 40
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Trend lines are the most powerful in my opinion but the moving averages are another, regression channels, fibonacci fans/arcs, bollinger bands...there are many.
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Registered User
Joined: 1/1/2005
Posts: 35
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That is a vague question. many different kinds of support and resistance..such as chart pattern resistance, psychological support and resistance(such as round numbers), horizontal consolidation support and resistance, trendline support and resistance, moving average support and resistance, old high-old low support and resistance, etc.
Do some homework. The answers you seek can be found in some good books on technical analysis.
try Bulkowski's 'Trading Classic Chart Patterns'
or Schwager's 'Getting Started In Technical Analysis'
or Murphy's 'The Visual Investor'
or Kamich's 'How Technical Analysis Works'
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Registered User
Joined: 12/19/2004
Posts: 457
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I don't think in terms of support and resistance "points" as that implies a specific price where you expect price to turn.
I do think in terms of support and resistance zones where I would expect a particular trend to pause, if not reverse.
The width of the zone is roughly determined by the volatility of the stock. The more volatile the stock, the wider the support/resistance zone.
All of the conventional methods (ie. chart patterns, moving averages, etc.) are guided by the concept of support and resistance.
Chart patterns themselves are nothing more than lines drawn to connect visually significant price extremes. Lines that define chart patterns ARE support/resistance lines.
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Registered User
Joined: 5/17/2005
Posts: 221
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Nice question ...one that could generate a lot of discussions. I like to keep it simple. use the horizontal line method. It works well for daytrading. Support and resistance are perceptions of the price. Typically I like to trade stocks that have 60% Institutional Ownership. They are likely to set what they are willing to buy the stock at and what they stop buying at. If they have large orders of a stock to fill they may buy over a course of several weeks and the stock may trade in a lateral channel. Starbucks is a great example of this.
There is one book that I own on the subject Support and resistance simplified by Micheal Thomset....
Good luck with the trading
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Registered User
Joined: 10/7/2004
Posts: 2,126
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Folk, support and resistant is a straight and simple concept. It is within the price action, and yes the best way to see them is visually. there are programs that will calculate the support and resistant points, but many time not as accurate as your eye. By the way, only your a visual inspection of a chart will tell you the support, and resistant level and more important their meaning.
Don't try to make something symple into something complicated.
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