[Nemesis]

Here's a live example not in hindsight.

Expect the first tests to hold, whatever happens next, it's anyone's guess, but the fact that we approached precisely this level just before new earning seasons is far from a coincidence. If you were long, as you should had been, this level was a magnet.

[AgeKay]

Originally Posted by Logic »

There were a few traders stating that "Support becomes Resistance and vice versa . . . to the tick" but no one posted a chart to show this interesting phenomenon. Seeing that it NEVER happens consistently, how could anyone use this as a trading tool?

You won't see it on bar charts or candle stick charts. I developed my own time chart where it does show up consistently, but I am not going to post it.

[maxima]

Originally Posted by AgeKay »

I developed my own time chart where it does show up consistently, but I am not going to post it.

thats my boy!

[SunTrader]

Originally Posted by AgeKay »

.............. but I am not going to post it.

Shucks, I'm so disappointed.

[SunTrader]

Originally Posted by Nemesis »

Here's a live example not in hindsight.

Expect the first tests to hold, whatever happens next, it's anyone's guess, .......

I'm sure you are not meaning the posted chart's exact point but I look for a "zone" of support or resistance, especially when it involves a bar with a spike bottom or vice versa top. A daily chart for that zone shows weekly high/low and how price and volume reacted just prior to and into big selloff in Sept/Oct '08.

[Nemesis]

Originally Posted by SunTrader »

I'm sure you are not meaning the posted chart's exact point but I look for a "zone" of support or resistance, especially when it involves a bar with a spike bottom or vice versa top. A daily chart for that zone shows weekly high/low and how price and volume reacted just prior to and into big selloff in Sept/Oct '08.

Yes, it's an area not an exact number, particularly in a chart as big as this (weekly).

[martinguitar]

Originally Posted by AgeKay »

You won't see it on bar charts or candle stick charts. I developed my own time chart where it does show up consistently, but I am not going to post it.

Keep that grail secret.

The whole idea is that once the level that the longs entered positions at is broken, they are still in losing trades or had their stops taken out. Now, some of these longs will want to get out at break even, so they exit once price returns to the broken support, creating resistance. Also, the shorts who missed the first wave enter on a retest and some prior shorts add. Either way, the only thing that causes support to become resistance (and vice versa) is traders. They can act as buyers or sellers.

[AgeKay]

Originally Posted by martinguitar »

The whole idea is that once the level that the longs entered positions at is broken, they are still in losing trades or had their stops taken out. Now, some of these longs will want to get out at break even, so they exit once price returns to the broken support, creating resistance. Also, the shorts who missed the first wave enter on a retest and some prior shorts add. Either way, the only thing that causes support to become resistance (and vice versa) is traders. They can act as buyers or sellers.

Exactly. That's what I was trying to say with my post although your post describes it much better than mine and yours is easier to understand.