Letters To S&C by Technical Analysis, Inc.
I’ve got to tell you, you guys are great! I love your mag. It has the best articles in it that we can all relate to or learn from.
EVIDENCE-BASED SUPPORT & RESISTANCE
Thank you for Melvin Dickover’s article in the April 2014 issue of S&C, “Evidence-Based Support & Resistance.” I am relatively new at trading and found his article very interesting in its description of support & resistance using volume. I prefer indicators that are hybrids of price and volume and find them to be more accurate than using price alone.
I have two questions for the author:
1. What is the meaning of “pools” of supply or demand?
2. What does the scale on the relative volume indicate when using the default parameters of 60 days and two standard deviations?
Thank you for sharing his work.