Indicators are liars! Support and Resistance Trading for the S&P emini

This is a very valuable discussion for me. I don't know anything about S/R.

Your S level of 1265.50 held nicely during yesterday's session.

I can see how you determined this S level by looking back on 1 hour charts. But how did you determine the other 15 S/R levels? I don't see them when I look back.
How can you see so many different levels?

Thanks for your posts.

 

In long at 65.25 based on 65.50 level 1st target filled.

 

I do agree with this affirmation. The core of the problem is that how to effectively determine the level of S&R? In other words, what index/skill/tool to be used to know where are those two pivotal points?

The above question is also addressed to Anek. I greatly appreciate, as well as other members do, if he would answer that.

 

2nd target now filled. Trade is guaranteed profit, now to manage the runner.

 

<i>"72.50 Was again the magic number at 7:57 EST, I was out so missed that particular trade. I hope some of you managed to take it."</i>

That's fine... pro traders only need to catch one profitable swing most days, and keep net losses small otherwise. That said, what magic number trades have you caught? A trade blotter showing real-money fills and results would add much to any of these threads... especially this one with a plethora of 1-post contributers.

I know of nine and ten-figure fund managers who use various indicators for their aum decisions. How many posters here are trading seven-figures or bigger and wish to post their buying power as proof? Be careful of stating absolutes when it comes from a source of nil opinion.

fwiw, I only trade price action and the measurement of it... no use for volume or sentiment tools of any kind. But I wouldn't throw a blanket of dirt on the correct use of indicators by those who read price action accordingly. To each our own.

 

My campaign here is against the "over use" of indicators, many traders rely HEAVILY upon indicators as the core reasoning for a trade. What I advocate is the use of Support and Resistance levels as your core, to identify the areas you wish the trade and the LIMITED use of indicators only as confirmation.

 

Only exited part of the runner at 67, the rest was taken out BE

 

Market went down to 63, just missing the 62.50 level, I had a set up, but was hoping to enter closer to the level. very fast 2 points for anyone that was brave enough to over step the level.

I however was chicken

If we go to the 62.50 area once again the odds of success are reduced, I would advise only taking a solid set up based upon your system in that area.

 

Hi ESReisstance,
I also think that using and relying indicators is not very smart.
Why? I think that the reason is that the markets non stop change their parameters. They trend, they consolidate, they change the period and the magnitude of the waves, etc.
That's why the indicators can not get the moves all the times. For example for one market "mode" the most useful indicatror set will be of no use in the next market "mode". That is the reason that the mechanical systems relying on indicators destroy themselves in the time.
On the contrary the naked human eye can spot imediatelly support, resistance, trends, corrections, consolidating, etc. This is the tharer's edge.
I disagree with you that on timeframe less than 1 hour the market is diffrent. I think that under 1 hour (down to 1 minute) the S/R work also fine. There is no diffrence.
Can you show on chart how you use the S/R for your trade?
Cheers.

 

You had me until I saw the Fibonacci levels.