Support/resistance levels. How do I identify them? - page 9

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Aleksei Stepanenko:
Michael, I'm sorry, I don't understand you. Do you agree with what I wrote or vice versa? Can you elaborate on your point?
Alexei, that was a form of sarcasm. Open an option bill for the currency you have chosen and see the strike levels that look like this for eur 1.00500, 1.01000, 1.01500. There is a 500 pips step if I am not mistaken. Traders of options drives the asset to the upper or lower strike, therefore the currency licks round prices and nothing else. Again my opinion only, nothing more.
 
Aleksei Stepanenko:

Michael, I'm sorry, I don't understand you. Do you agree with what I wrote or vice versa? Can you elaborate on your point?

I didn't say anything about the level being at the round price being untouchable. It's just that the price appears less frequently here. Perhaps for the reason you mentioned. Also, the level may not be at the round price. I do not see any contradiction with your statement.

Of course. The strikes are on round numbers and the quote itself can be half that. The spot quote is a spiculative bullshit. Otherwise, the level is where there is large volume at a certain price. Have you ever seen the volume profile? It is plotted horizontally with respect to the quotes, showing the traded volume at a certain price within a certain period of time. Where the volume is larger, the level is stronger and they are formed in this way only. The maximum volume of the price can not always be relevant. Yes, the volume has formed a level at a certain price, but it can and will be broken, that's what levels are. IMHO!!!
 

Mikhail, I updated the previous post there, sorry. I understood everything you said. It is correct, but there is no contradiction.

 
Mihail Marchukajtes:
Where the volume is greater, the level is stronger and they are formed only in this way and in no other way

Let me tell you a ridiculous thing. The level is where there is the least amount of trading. Most of the trading is between levels.

 
Aleksei Stepanenko:

I'll tell you something rediculous. The level is where there is the least amount of pro-trading. Most of the trading is between levels.

This is another theory which has a chance to happen. Some market participants believe quite the opposite. Where the minimum volume is, that's the level. Another thing is what you want to get from the definition of this level. Well, let's say, it has been determined and here is the level. Then what?
 


The price flies in these places. These are the real levels. The rest are a set of positions to overcome them.

 
Aleksei Stepanenko:


The price flies in these places. These are the real levels. The rest are a set of positions to overcome them.

Also true. I'm not going to argue. Otherwise it would be very simple. Not true. :-)
 

Mihail Marchukajtes:

Not true. :-)

Right
 

These are the levels determined solely by thechanalysis:


 
Алексей Тарабанов:

These are the levels determined solely by thechanalysis:

So you define an extremum to which the price has not been in that location, as in the example over 110 days ago, and its breach is a level breach? Interesting. It is also an option. It is based on old extrema.

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