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Over the years I've posed this question to myself often.

"What is it that sees price resist/hold at levels,and why at specific levels often enough to catch traders eyes."

You are yet another who has seen this happen often enough to think it worth further discussion. Many thisnk it so worth while they develop or attempt to develop ways to see it occuring.

Personally I have come to the conclusion that its all about the herd---that group of traders who are involved in that snap shot in time.

If you take any group I hazzard a guess that a small majority will be quick to make decisions. (Small pull backs (.382 or/initial volume selling or buying at tops and bottoms)
The majority will take a while to react (50% retracements)
And yet another group will find pain at about .618 retracements.

On the filp side
Like numbers see value at .38/.50/.618/1 retracements.

As such these areas are only lines in the sand (To me) not concrete walls.
They are points to watch for concurring analysis--and to me this must be seen in crowd behaviour reflected in the participation in price.
I find this to be the range of bars and the volume traded.

Most would be looking for INCREASES in volume.
I however look specifically for the exact opposite this in itself is often a leading indicator.

<blockquote data-quote="tech/a" data-source="post: 402922" data-attributes="member: 257">Over the years I&#039;ve posed this question to myself often.&quot;What is it that sees price resist/hold at levels,and why at specific levels often enough to catch traders eyes.&quot;You are yet another who has seen this happen often enough to think it worth further discussion. Many thisnk it so worth while they develop or attempt to develop ways to see it occuring.Personally I have come to the conclusion that its all about the herd---that group of traders who are involved in that snap shot in time.If you take any group I hazzard a guess that a small majority will be quick to make decisions. (Small pull backs (.382 or/initial volume selling or buying at tops and bottoms)The majority will take a while to react (50% retracements)And yet another group will find pain at about .618 retracements.On the filp sideLike numbers see value at .38/.50/.618/1 retracements.As such these areas are only lines in the sand (To me) not concrete walls.They are points to watch for concurring analysis--and to me this must be seen in crowd behaviour reflected in the participation in price.I find this to be the range of bars and the volume traded.Most would be looking for INCREASES in volume.I however look specifically for the exact opposite this in itself is often a leading indicator.</blockquote>

[QUOTE="tech/a, post: 402922, member: 257"] Over the years I've posed this question to myself often. "What is it that sees price resist/hold at levels,and why at specific levels often enough to catch traders eyes." You are yet another who has seen this happen often enough to think it worth further discussion. Many thisnk it so worth while they develop or attempt to develop ways to see it occuring. Personally I have come to the conclusion that its all about the herd---that group of traders who are involved in that snap shot in time. If you take [B]any group[/B] I hazzard a guess that a small majority will be quick to make decisions. (Small pull backs (.382 or/initial volume selling or buying at tops and bottoms) The majority will take a while to react (50% retracements) And yet another group will find pain at about .618 retracements. On the filp side Like numbers see value at .38/.50/.618/1 retracements. As such these areas are only lines in the sand (To me) not concrete walls. They are points to watch for concurring analysis--and to me this must be seen in crowd behaviour reflected in the participation in price. I find this to be the range of bars and the volume traded. Most would be looking for INCREASES in volume. I however look specifically for the exact opposite this in itself is often a leading indicator. [/QUOTE]

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