[Gabe2004]

Short @ 135.641
Took profit on 1/2 @ 135.396
Target 135.225
S/L @ 135.625

[Gabe2004]

Stop was too close

[thalestrader]

Originally Posted by Gabe2004 »

Stop was too close

Looks like your stop loss served you well, wouldn't you say?

[Gabe2004]

Originally Posted by thalestrader »

Looks like your stop loss served you well, wouldn't you say?

Now yes but 10 minutes after I was hit it did not look like that

Gabe

[Dinerotrader]

Thales,
At what point does historical S/R become irrelevent to current trading? I start looking back 1 month, 4 months, and even a year wondering if there is any point to using S/R from that long ago especially given the changes in the economy. Just curious of your thoughts on this.

Cheers.

[thalestrader]

Originally Posted by imorgan »

At what point does historical S/R become irrelevent to current trading?

S/R matters until it no longer matters. I don't mean that to be flippant, but it is true. I remember an article or book by John Murphy where he used the example of IBM stock to show the "memory" the market has for various price levels. I do not remeber precisely, but I beleiev that IBM found support at $40/share some twenty-five years apart. I am likely off by a bit, but that is how I remember it.

Probably not the answer you were looking for, and maybe if I weren't so tired I could come up with a more well thought out answer. But off the top of my head, I'd have to say just what I said - An S/R level matters until it doesn't.

Best Wishes,

Thales

[sevensa]

Originally Posted by thalestrader »

S/R matters until it no longer matters. I don't mean that to be flippant, but it is true. I remember an article or book by John Murphy where he used the example of IBM stock to show the "memory" the market has for various price levels. I do not remeber precisely, but I beleiev that IBM found support at $40/share some twenty-five years apart. I am likely off by a bit, but that is how I remember it.

Probably not the answer you were looking for, and maybe if I weren't so tired I could come up with a more well thought out answer. But off the top of my head, I'd have to say just what I said - An S/R level matters until it doesn't.

Best Wishes,

Thales

In essence I agree with your statement, but I have higher confidence in more recent S/R levels.

If you look 25 years back, you will find "S/R" levels for any turning point and I think this become no different than drawing Pivot, S1, S2, R1, R2, their midpoints, Fibonacci ratios, Murrey Math from the previous day, etc. If you draw that many lines, you some are bound to "hold" price.

The same with going back 25 years to find S/R levels. If you draw lines on each one, you are bound to find some level which held current price. I think at some point, these S/R levels are nothing more than random lines and becoming coincidence for price to stop there. How far back that is, I don't know. I guess after a while one get some kind of feeling about what levels are important and which ones are just random lines. This is where your statement about it matters until matters is probably more important than many people realize. Many people will not get it until they get it.

[thalestrader]

Originally Posted by imorgan »

At what point does historical S/R become irrelevent to current trading? I start looking back 1 month, 4 months, and even a year wondering if there is any point to using S/R from that long ago especially given the changes in the economy.

I also do not consider fundamentals about the economy in my trading.

A very good thread that I used to read when I was content to lurk here at TL is Firewalker's "All you need is a chart ..." and I highly recommend it and you can find it here: http://www.traderslaboratory.com/for...hart-3843.html

It apparently came to an untimely end, and I would love to see Firewalker resurrect it.

Best Wishes,

Thales