Quote:
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Originally Posted by Achip
Past price action, aren't all support and resistance levels determined off past price action? In determining a pattern in Tech trading aren't we using past price action? Can past price past action determine future price action? I wish, too many variables, everyday is a new day. 
Two cents worth 
Andy |
Well, ya everything is based on past price action, but nothing is 100 percent true. When a support level is broken, it's broken, so what..The market never stops to respect the broken support level, it just throws it in garbage and leave many traders asking, why the hell is the support broken, it shouldn't. As if it was certain that the market will stop at the support level and turn around.
I recall someone saying that in the late 70s in the commodity futures markets, sugar was trading at 5 cents, people just bought contracts because it can't go any lower. It went to 1 cent and many people went broke. When the pressure over the commodity prices were released, sugar went to $10 as far as I remember, and people sold contracts at that time because they were sure that it can't go any higher. It did.
Nobody can predict the future
Thanks,
Nader