Price Porosity and Price Suspension

The Causes of these Phenomena and Several Partial Solutions

Andrew Coles

“[P]orosity” … is the term I use to characterize situations when a “bounce” from a support or resistance level is not “clean” in the sense that some relatively small penetration occurs before the expected trend reversal. Perhaps “elasticity” would be a better term than porosity, since the [support/resistance] level can be imagined to have some “give” rather than being rigid. Or one could just say that the Midas method is after all a simple approximation to a more complex and less deterministic reality.

—Paul Levine1

The phenomena of price porosity and suspension (a related problem not identified by Levine) in relation to the ...

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