newschool wrote:thats a gap being closed, its a different situation
you quoted exactly what I said, that in that M5 chart, I dont believe the s&r are important
well if I think about it, we can have 2 definitions :
- a s&r in its purest form is a level where price bounces
- and theres also a fundamental s&r , wich is linked to the value of the asset. if you pay 5$ for a burger, you wont pay more unless it tastes really better, if theres a real difference. in that case we have a fundamental resistance...
"thats a gap being closed, its a different situation "
no, the gap was already filled---- then you had momentum down which created a resistance point. Then the market came back to it and then went down----- just by looking left to trade right
"if you pay 5$ for a burger, you wont pay more unless it tastes really better, if theres a real difference. in that case we have a fundamental resistance...[/quote]"
if all of a sudden people started paying more for the burgers and the price rose to $7, and then sales started dropping off so they lowered the price back to 5 ( and people started buying them again) and then rose them again------ would that be based on fundamentals or s/r and supply/demand?