Determining resistance

[mattt]

I noticed that Henry Liu tends to base alot of his outcome predictions on the resistance level, but it's not an indicator (maybe that's obvious... but not to a noob like me!). What is the best way to calculate the resistance?

 

[Pharaoh]

Good question that doesn't have a simple answer. There are so many ways for calculating support and resistance.

Trend lines can show support and resistance.
Prior highs and lows for the day, week, or month can be considered support or resistance.
Double and triple tops and bottoms can be considered support and resistance.
Pivot levels can be considered support and resistance.
Fib levels can be considered support and resistance.

I'm sure there are more, but those are the first ones that leap to mind.

 

[mattt]

Thanks Pharoah! Do you have any EA's that you use to automatically calculate these metrics?

 

[Eric Alyea]

Wrote this for this thread

Wrote this for this thread
still have to add more

Support and Resistance

For me support and resistance is “Time period relevant”. What I mean by this, is that for each 1min, 15min, 30min, 1hr, 1day, 1month, you will get a different number value.
Here we get in to trending, moving averages and multiple moving averages.
OK if I heard that 3 years ago I would say, “You numbnut’s in poor man’s English, please”.
I had to make up something to memorize what the terms mean.
“Resistance” is when you jump up, the top of your head can only go so high, gravity pulls you back down.
“Support” is after you jumped up your feet hit the ground.
You can pogo stick to different high’s and pogo stick down a hill. Each different jump has it’s own circumstances in time.
Now we get into Fundamental’s vs Technical’s. If you are jumping on your pogo stick and don’t see the pot hole in the ground or the barn on fire, you crash or burn. You can’t trade with your head “Ostrich head in the sand” only in a technical cart.
Then your stupid, you didn’t check your fundamental reports (My workers knew to stop talking when a Dallas traffic report came on the radio, sometimes it was for us some times not).
If you are following a trend, i.e. Pogo sticking with a herd (Fibonacci go to the glossary and read each one, I call it following the band wagon) you may not know that at a certain point the lead guy is going to turn around and say hey you dummies go where you want I’m done and calling it a day. I don’t know why you followed me here, I’m going to the house.
Personally I like to eyeball the charts and use the cross hairs.
On your favorite time period chart take your cross hairs and match the line to eyeball the most tops of the candle bodies are or what ever you use. Write that number down. It will change. Go to a different time chart and do the same, again on other charts.
Use your brain. Sometimes the calculations are the way they are because the “Ubber banker/Troll’s” make them that way.
Figure out a line, back up 3 notches, and go for the conservative sure win.

I disavow all I have said above. You are on your own.

For fun I’ll dig up the numbers for the technical calculations of:
Pivot Point
S1, S2, S3
R1, R2, R3
and research the glossary, back later, I only have so many words I can type a day or explode.