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Here are five random lines for tomorrow. I used random.org and you can see I put 8800 to 9400 as my range (88.00 to 94.00). I then hit the button five times and plotted the lines. This is exact same as I did for todays range this morning. I am picking the 88 and 94 but I think any number of things could be used to set an outside limit like the one I am inventing.
I just want to reiterate that the lines I am showing here (89.22, 90.76, 91.38, 91.97, 92.48) are for the Wed Dec 29 session (tomorrow).
Volume is absent and by leaving behind half of the equation of what makes price move you can't achieve the full potential of the information or clues the market is providing. A car is useless without gasoline so are random lines of support/resistance without volume information. Eric J, i am afraid to tell you that your experiment is pure coincidence.
Euro FX Futures (Z10 CME) intraday: the upside prevails. Pivot: 1.3185
Our preference: Long positions above 1.3185 with targets @ 1.3275 & 1.3325 in extension.
Alternative scenario: Below 1.3185 look for further downside with 1.315 & 1.311 as targets.
Comment: the pair has struck against its resistance and is pulling back on its support ahead of a rebound.
You're probably right, by commenting and analysing the way you did, you appear 'AS IF' you were trading them. If you don't trade them then what is the purpose, if any, of this exercice. If you don't trade them then why putting lines on your chart ?
A practical exercice would be to fade a second test of a random line and see how much you could make by doing so over a certain period of time.
I commented that way to be consistent with how I or others would comment on a chart with such lines without knowing the origin of the lines. I've discussed already in a few posts what the point is. Sorry if there is a language barrier but I am not sure how else to explain it to you, perhaps someone else can rephrase it.
Try again tomorrow. I think what has shown and my lines make it quite interesting.
For the benefit of and probably others, I will attempt again to try and describe the point of the thread or my thinking behind such a thread.
I want people to look at these charts, look at the post analysis after the fact, and then ask themselves if they make similar analysis or rationale with any of their indicators -- seemingly assigning properties like predictive values to an indicator.
Then, knowing that what I am posting here is 100% random (proven), take a step back and ask yourself how that impacts your beliefs. What changes in your perceptions of your other indicators?
On this very forum you can find all kinds of indicators that plot lines on panel 1 of your chart. Lines for support and resistance, regions for price range, etc. When price does something with one of these lines, we tend to assign value to that. Should we? Look at the charts posted so far in this thread. Price "did something" with these lines, too. Imagine for a minute you did not know the lines were random. What would be so different from the charts in this thread compared to the charts in other threads?
The point is simply to get people to approach things from an angle they may not have previously considered, and hopefully in doing so they will benefit in some way and improve their trading.