Re: Pivots, Posts, Sensibility, and.... Trading.

[Harley Meyer <meyer@xxxxxxxxxxx>]

Peter2150@xxxxxxx wrote:

> Technical analysis is math, but it is applyling math concepts to the
> underlying price action.  All indicators that are based on price, and
> what
> else is there, reflect what price has to do this point.   You have to
> go back
> a stop further though and ask yourself what determines price.   Its
> not math,
> not technical analysis, its people and their decisions.

Hello Pete,Yes you are correct. This is the field of study called,
economics. Supply, demand, rational expectations, etc. This is my other
degree. What happens in many academic areas of study at the advanced
level (PHD) is that they begin to build mathematical models. So if you
wanted to go to a major university to study economics (except policy)
you need at least a masters in mathematics. They use very advance
mathematics. Same goes for finance.

The point here that you need to take and tuck up in your brain. Is that
math is a tool to give you insight into a particular set of events.
Those outside of mathematics feel that they have to construct a model to
describe the full behavior. That is incorrect. The point is to gain
insight. That is all that mathematics does. Give insight. That is all
that you want it to do. This is what I have been trying to say over the
last few points.

> Just plot a straight line thru the days data from the open of the
> day.   Look
> at how it acts as support and resistance.

I assume you are talking about intraday. I will take a look at that.
Thank you. Looking at a very similiar problem. Look at the previous days
open. Many times you will get a retracement in price during the day, be
it near the high or the low of the day, back to the previous days open.
So I think your idea of support/resistance based upon the opening price
also carries through to the next day. Not always but many times.

Harley