July 25, 2011
- in Uncategorized by schooloftrade
Dynamic or Static levels of support/resistance…which works better?
Dynamic = always changing, re-calculating, re-adjusting, liquid
Example =
– Today Highs/Lows of the day
– Big Money Trigger Line (BMT)
Static = never changes, always the same, sets up and then never changes
Example =
– PHOD
– Daily Fibs (yesterdays OHLC)
– Open/Close
We need to keep a close eye on the DYNAMIC levels of support/resistance at all times because we need to make sure…
– I have enough room to take the trade
– I have my stop loss correct
– I have my profit targets correct
Which is stronger to hold? Static or Dynamic?
Static is always the same, so everyone knows about it, and the ‘self-fulfilling prophesy’ comes to mind.
However, whenever everyone knows about a price level it then becomes very hard to profit from it.
Static is stronger, but much harder to use with ease.
Dynamic is always changing, so fewer people know about it, making it weaker than static, however, since people are NOT aware of it, it becomes easier to catch the market off guard.
I would think Dynamic would be the best levels to use.
Range Charts, different chart types
– Easier to learn the patterns
– Easier to recognize the patterns
– Easier to manage risk
– Reason = all the candles are the SAME SIZE RANGE
– 21range = every candle has 21 ticks of up/down trading range.
Wave Speed slowing down and then picking up again.
– Remember that the speed tells you who is in control
– I want the sellers to be in control for a wave short, or the opposite for a wave long.
Are there limits on crude?
Yes, 6 dollars per barrel
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