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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: Dnorman who wrote (6556)	9/6/2002 12:02:45 PM
From: ajtj99	Respond to of 30712

Dnorman, I'm not sure what you're asking here. When we go above a resistance level, it becomes support. When we go back below it, it becomes resistance. It's like a line that's there, and you're either on one side of it or the other.

To: Dnorman who wrote (6556)	9/6/2002 12:04:24 PM
From: Jeff	Respond to of 30712

I have heard when you go through resistance it becomes support. thats true in bull markets..... with any t/a....you first define the trend..... this whole year is obviously a downtrend.....and we are in a bear market..... thats why pierce and sucker plays have been 100% effective....thats support being broken....and new lows keep coming.... in a bull market....the resistance gets pierced....you get a sucker selloff....then you go to new highs.... bear market....support gets pierced....you have a sucker run....then new lows come.....

To: Dnorman who wrote (6556)	9/6/2002 12:12:55 PM
From: Cola Can	Respond to of 30712

I have a resistance and support question. I have heard when you go through resistance it becomes support. There are some things that need to be looked at, in determining when resistance becomes support: 1. How long it traded at the resistance level before breaking through it. The more it traded at the level, the stronger the support level will be. It is more an issue of volume traded rather than time, but an extended time would produce a lot of volume. 2. The amount of volume it took to break through the resistance. If it was weak volume, relative to its norm, then there is a chance the support will be weak. Low volume could mean not all the sellers have been taken out. What you want to achieve is determining how strong a base was established at a certian level. A trendline will act like a support/resistance line also. The rules are not written in stone and in today's manipulated market, TA rules have a greater chance of failing. But most of the time the rules hold.

To: Dnorman who wrote (6556)	9/6/2002 12:45:20 PM
From: Jeff	Respond to of 30712

btw.....if the trend did change to bull today.....once we pierced that 1294.....the selloff was a sucker....and it would break higher... but this is just a short time frame thing.....like a little mini bull move in a big bear trend....

To: Dnorman who wrote (6556)	9/6/2002 4:08:35 PM
From: Jeff	Read Replies (1) \| Respond to of 30712

Dnorman....if you watched the 1294 level today.....what you saw was a bullish pierce to 1296....a sucker selloff to 1280's.....then a run to 1304.....that said the mini trend changed to bull once it broke past 1296 but.... at the close they pierced down through 1294 to 1292....that tells you its not major support....any run coming now will be the sucker run before a dump below 1294 that sticks... this is all in a short span.....so its all short term stuff...but in bigger time frames the same thing happens....