Replies to post #13387 on lowtrade

[lowtrade]

Support/Resistance

Forgot one portion of your question, about ARNA in my last posted chart. I did put it in my chart, but didn't clarify my thoughts about the subject.

As you can see when a support or resistance point is broken, it changes it's role.

Without a pattern to be relayed on, this main support/resistance point normally holds, and is pretty good until a chart pattern shows up to challenge it.

Thats why when trading a move without a pattern I choose resistance as a target. It usually holds. If not broken on the moves emotion the first time. You will probably see a stall channel and consolidation, while retail decides what they really think.

At any rate resistance points reached, without chart patterns, are a sidelines move for me.

[DV_3D]

Thanks lowtrade!

Yeah I saw the 50dma cross below the 200dma on ARNA, but forgot to call it out, Huge technical move not to draw attention to, thanks for pointing that out.
Would that be a Reverse Golden Cross? Or some opposite of Gold, so maybe a Lead Cross? LOL.

I also forgot to draw the zig-zag lines in the ascending triangle, I'll have to remember that next time.

And thanks for clarifying support/ resistance when playing a pattern vs. having no pattern present.

And I quote: "Without a pattern to be relayed on, this main support/resistance point normally holds, and is pretty good until a chart pattern shows up to challenge it."

Which makes more sense and seems obvious to me now after you explained it, since now I realize that first, it takes testing the support and resistance levels more than once to begin creating a pattern and then qualifying it with 2 or more (preferably 3) touches for a possible breakout signal, with news trumping all.

Have a great day
-d