Discussion in 'Technical Analysis' started by Traber, Apr 23, 2008.
For ES and YM markets is there an indicator that gives the S&R?
Pivot Points ... now begins the real work.
Put even more simply, tops and bottoms indicate S/R.
Most certainly there are sir and all of these can be made to display their magnetic properties intraday or daily in real time so at the very least add the following on to each chart in order to truly see intraday S&R...
Fibonacci levels (use today live plus yesterdays); Gann Natural Levels; Gann Square of 9; Pivot Points; Yesterdays OHLC; Gann Box; Elliott (try Advanced Get); Astrological, Gartley Patterns, Harmonic Octaves, Murrey Math, Pyrapoint, Andrews Pitchforks and whatever you do don't forget to add the marvellous Pesavento Patterns. (I got some of my own too.)
These give the horizontals and a few angulars although I've more or less skipped angulars as that wasn't the question.
If you also ask about angulars and linear/non linear timing we can supply that as well and then you will know everything. All these are used by many, many traders so you'll see the lot.
Your question has a zillion answers, but you must find the one that has meaning for you.
Price and Volume.
Scalptrader posts its daily S&R levels for ES and ER2.
bummer knew I'd left something out. Yes Volume but make sure you are thorough and use Google because there are many approaches then make up your own mind.
For very short term and in the Present, the most precise S is the wall on the DOM bid and, correspondingly, the R is the wall on the DOM ask.
This would be for very high money velocity(vis a vis, taking profit segments continually) trading.
One caveat is that if a wall is not present on the DOM, the market is exhibiting no resversion characterisitcs so, in effect, there is no corresponding R or S in the given direction (restricted to the definitions of price near BBid and BAsk according to Larry Harris in "Trading and Exchanges").
Thanks for all the replies and good info
Ah, dear Jack, I know you can't see this because you have me on ignore, but how do you explain those frequent instances where a limit order wall builds up and repels boarders for a while, but those pesky market order traders overwhelm it to move the market against that wall? The DOM is like everything else in the market: it works when it works, and doesn't when it doesn't. Why can't you look past your OWN orthodoxy and discover what WORKS?
Separate names with a comma.