Hi richk...just futures and primarily the ES emini. Today, I had seven trades in the ES and squeaked by with $153.00 after commish trading 1 contract. Just couldn't catch a strong move...
I am trying to trade the ES with support and resistance in conjunction with time of day. I am using floor pivots calculated with yesterdays high, low and close. I also use daily price lines that include the open as well as yesterday's high, low and close. In addition, I have the Trade Prospector (http://www.trade-prospector.com) calculated SR numbers. Today, the ES rose to touch yesterday's close (891.25) near 10:00 EST. It then sold off to below the S1 (880.92). It stopped and reversed almost exactly at the TP BP2/First Lower Stop (878.6-878.7) near 11:00 EST. It went back through the S1 and chopped its way to just above yesterday's close between 15:30-16:00 EST. An astute trader could have taken two trades for approximately 10 points each. Not being an astute trader, I stood aside and watched the market chop all day and took no trades. My question is - what criteria do you use to decide that SR has held or broken? Do you just put a limit order at the SR expecting a reverse and then place a stop on the other side? Bottomline, when do you pull the trigger? What's a reasonable stop to use for this type of trading with the ES? Many traders seem to use 1.5-2 points, but that looks way too tight for this type of trading. I will say one benefit of this method appears to be that you won't be getting constantly suckered by all the gyrations between the SR points.