Weak vs Strong support/resistance

Raphael wrote:
“how do you determine strong support/resistance vs weak support/resistance?”

Been having a conversation with Raphael in the comments, which any of you can do and I am more than willing to answer any questions. It makes this site more informative if you ask questions.

Well to determine weak support vs strong support/resistance is very ambigous and user dependent. However here is a couple of guidelines that I use for my definition of strong vs weak support/resistance -

Strong Support/Resistance -
A trendline that follows a channel
The 50 dma and especially the 200 dma line.
A horizontal price line that has been touched many many times and bounced off of.

The last one is the ambigous user dependent and very arbitrary line, because there is no set number of times to say that yeah that is a strong line of support/resistance.

Weak Support/Resistance -
A support/resistance zone vs a distinct line
A horizontal price line that has been touched only a couple of times and bounced off
The 30 dma line

These should definitely still be used as support/resistance but it is a “weaker” support/resistance, meaning that it can be broken easier than the three descriptions I have of strong support/resistance. You can trade using these support/resistance lines/zones and be very successful but realize that the trade is a little riskier.

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