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Hi,
Support/Resistance is a visual process. The more points the lines touches
reverse and the more long term it is in place, the more valuable and
predictive it is becoming.
I read in S&C magazine a piece about evaluating the strength of S/R by
volumes. Calculating the over supply/demand the line was repelling is giving
a clue on the next time it will be attacked. In the same piece, it was said
that S/R is a zone and not an exact value. I quite agree. Take it as it is:
a level at which the people that lost money want to breakeven (resistance)
or where buyers consider the security to have real prospect for value
(support). It is a small war of supply and demand and a big chunk of
psychology of the masses.
It takes time to really select the right S/R because of the noise of the
markets.
-----Original Message-----
From: owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]On
Behalf Of Tony
Sent: Sunday, August 13, 2000 2:21 AM
To: metastock@xxxxxxxxxxxxx
Subject: Support/Resistance Calculations
Newbie help please.
I have been eyeballing support and resistance levels and using
horizontal lines on pricecharts.
I desire to become more sophisticated and use Metastock formulas to
determine primary and secondary support and resistance levels. Any
hints as to how to go about this.
Thanks.
tony
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