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Since you are talking about waves, it could be interesting, what happend since 2000. I compared the downmove from the high to the low in October 02 with the upwave to October 07. This upmove last nearly two times longer than the preceding downmove. Volatility increased since the last high and in this view it's doubtable, if the 1250 lows forms a long term bottom. If I'm correct in Db's interpretation of support and resistance, the we have resistance at 1555 and support at aroung 800. To mitigate the worse scenario, we need now a rally up.
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Swing points provide a form of support and resistance, yes, but it's somewhat different from the support and resistance provided by zones. The "resistance" provided by points, particularly if they are isolated, is provided primarily by the inability of the trader to find a trade (which, after all, is the business of the trader). There's nothing going on up there, or down there, so price returns back to an area where these trades can be found, which is where the "value area" comes from.
In a V formation, price never stays anywhere long enough to provide these zones, and one is equally likely to find a trade at point A as point B or C or any other point. Since the ES has reached that top zone twice now, the resistance it provides is a bit more formidable than a single point. But whether we make a trip all the way down to the bottom is anybody's guess. If you'll look closely at this particular chart, what appears to be a V has some of those
value areas or consolidations within it. 2004 was spent going more or less sideways, then the first half of 2005, then the second half of that year, then a little more than half of 2006. Each of these represents a potential waystation. We're at the first of them now.