Thessaloniki
Posts: 29 since Jun 2010
Thanks Given: 4
Thanks Received: 8
|
Hi
I am trying to evaluate the Price Action around a Support/Resistance line. For example:
1) After touching a support line, price shoots up. Then the Support line gets high marks.
2) If price drops and stalls for several bars, before penetrating the line, it still holds some value as future Resistance. Whereas if it provided 0 support, if price did not slow down at all, the line is invalidated.
3) If price drops rapidly and then slows down a little before penetrating the support line with a big down candle, it still shows there was a lot of buying in the area.
I am thinking of using momentum indicators, maybe cross of fast over slower indicators. I did some tests, they looked promissing but did not cover all cases.
I don't have much experience with indicators. So, what do you guys think? Could you recommend some indicators to try out for this purpose?
|