Real-World Accuracy: SPY and DIA Examples

SmartReversals
06-28

Support and Resistance are key price levels on a chart that act as potential barriers, temporarily stopping or reversing the direction of a price trend.

  • Support: A price "floor" where buying interest is typically strong enough to overcome selling pressure, causing a downtrend to pause or reverse upwards.

  • Resistance: A price "ceiling" where selling pressure is typically strong enough to overcome buying interest, causing an uptrend to pause or reverse downwards.

The levels published each Friday are modeled to provide a predictive framework for the subsequent week's price action. The efficacy of this backtested model lies in its integration of both weekly and monthly levels, which creates a more comprehensive and dynamic map of support and resistance.

The past week provided examples of its accuracy: the $616 level acted as a resistance zone for $SPDR S&P 500 ETF Trust(SPY)$ , just as the $440 level did for $SPDR Dow Jones Industrial Average ETF Trust(DIA)$ (the Dow Jones tracking ETF) with remarkable precision.

For whom haven't open CBA can know more from below:

🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly!

Find out more here：

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

  • Top
  • Latest
empty
No comments yet