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If price bounces off anything, it bounces because there is a change in balance between buyers and sellers. All buyers and sellers watch similar S/R levels, and if price bounces anywhere, this is similar to a self-fulfilling prophecy.
So if you look for a secret or magic line that has been developed by an alchemist, you first have to promote it to everybody to make the secret widely known. The promotional cost is quite high, so I personally decided not to create new support and resistance lines, but use existing ones and focus on finding out where the crowd is gathering.
Trading is a zero sum game, and you need to feed on others, which can only be achieved, if you know what the others are doing. You are a either a predator or the predator's supper.
if everyone knew precisely where prices bounced off from than there wouldnt be any stock market i understand that part, but over years of chart watching i personally have come to a conclusion, prices dont move the way we want them to move or trade them the way we want them to go as everone says where the crowd is moving, but i kinda think different with this one..... price will move the direction its supposed to move me or you or someone else cant stop it from going in that direction, we just assume that the crowd is heading in that direction. If no one understood yet, so i wanna say that everything is controlled. we are just given these tools like indies or some say we trade naked without any indis, we all are just the small fish in this trading business, now dont get me wrong here fattails u might have a million dollar account, but trust me u know better we all are just the small fish that just nibble on left overs, the real big fish make a killing by exchanging funds through this manner. I totally could be wrong here but remember one thing besides life & death everything is controlled/monitored. If nothing was controlled there wouldnt be any wall street......
thanks fluxsmith,
im gonna let u know the outcome once i convert everything to nt6.5 ill have to learn coding or playaround with it for a bit ill try. thanks i appreciat all the help i got at big mikes that probably i couldnt get any where else
It reminds me the dog with a stick attached to his neck which is holding a sausage in front of him. The faster the dog runs, the faster the sausage moves away. When the dog retreats, the sausage follows him back.
The mirrored moving average is similar. If price moves away from the moving average, the mirrored moving average will move away from price, so price never catches up. Price can only catch the mirror image, if it retraces back to the moving average. When price crosses above or below the moving average, it will cross below or above the mirror. But these are the only points, where it can be hit.
Let us call this a Smoke Band. You can calculate the arithmetic average of the Smoke Band and the moving average. That can be certainly used.
Also I think you should have a look at the Commodity Channel Index (CCI). It measures the distance between price and a moving average, then normalizes it for display. So it comes closest to what you probably look for.
I have added a 5 min chart of CL with an overlay of the mirrored SMA and the CCI. You will note that they are similar.
It was just an idea, now all indicators out there are just ideas & theories, some work some dont im pretty sure if i explained myself right, i would get the right results, not a dog chasing a sausage..... or opposite of an elephant....
maybe if i got a screenshot and manually draw what i mean then that woul help i guess, but how do i get a screen shot.....
