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Topic: Is Resistance Below Same as Support |
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kadip1kr
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Posted on: May 13, 2009 - 7:03pm
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Dan-First, fabulous site. I use Metastock and others but find great added value here. Question- I notice some stocks with 3-4 days nicely above a red "resistance" line, and note that T1 downside profit is calculated on the blue support levels well below that and that the resistance level immediately below seems to be ignored ( not treated as support). I thought that when superceded, resistance levels become support levels. Is there a reason that you havent turned a resistance level consistently below current price into support? Or does that level have characteristics which you feel are not yet supporting, therefore potentially allowing price to fall thru it to the blue support levels further below?
Suggestions: printing and excel copy-off- I sometimes screen in metastock etc and copy in to SC to check support levels, and would like to also do the opposite-
Thanks
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dan.chapmano3
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Posted on: May 16, 2009 - 11:30pm
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Thanks,
Yes you are correct that most of the time once a resistance level is exceeded it becomes a support level.
For the Consultant tool some stability above the last resistance level is usually required for it to change to support. In may cases a fast rally for a few days above a resistance level may come right back to that last resistance level and in these cases it remains resistance. Also in those cases it is not counted as a downside resistance to S1 as it could fall right back through (not providing support).
About the printing, right now most browsers do not do a good job printing complicated web pages. We have used the program snagit to capture and print pages but it is not easy and not free. But we'll look to see if there is an app we can integrate in the page for printing.
Dan
*** Disclaimer: This post is just my opinion (and may contain errors and false information) and is not investment advice.
I'm not an investment advisor, please check with a registered investment
advisor before any type of investing. *****
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