Hi everyone Please find attached todays levels. Always remember to use the numbers as a guideline for potential areas of high probability plays Always use a set up based upon your system to enter a trade. Good trading all
Message I received from someone, some of the info may help others. My answers in bold. ESR, I've had your levels on my screen everyday for while now. I've been trying to incorporate them into my trading. Often times using them as profit targets and stops. And they've helped a great deal. <strong>Thats good to hear : )</strong> A quesiton or two. With Mean Reversion, are you sometimes entering trades that are contrary to the trend? <strong>Yes a lot of my trades are contrary to the prevailing trend, on strong trend days i use "dynamic" S/R to roll with the trend. I primarily think of myself as a counter trend trader, believe it or not I find trend trading harder</strong> Example, @ 11:26 we're clearly in a hard sell-off. But we've got a bar piercing the BB, and bumping into support at that time. <strong>Yep, I took a loss on that one also, sometimes the method doesnt work and we get a level blown through even with a good set up. On this particular trade I entered when I thought the down force in price action was decreasing, I got it wrong on that occasion. It does happen, as with any method. Thats where trade management and keeping your risk to reward at optimum levels comes in. Yesterday was a very good day for me and anyone following the levels, many very profitable trades were on the table. </strong> But looking towards reversion, 11:26 and 12:07, we've got this criterion met, but we're blowing righ through the levels. <strong>This is where experience comes into play. We've had a VERY volatile market the last few days if price action is hitting your area with force you have to make judgement calls. The ability to read price action comes with screen time and practice in different markets. Think about it logically I "predict" these areas using past market action, you cannot rely upon that alone. Ultimately your trade in that area is governed by a set up and the action of price in that area. You take a trade only with a set up and price action on your side. If price is running like a mad bull at your area its unlikely it will hold....ultimately being able to read price action comes with time and experience.</strong> Also, are you looking for a CLOSE above the BB? <strong>Close above the BB not so important to me, I am looking for my entry to be outside the bands, the further out the better.</strong>
Price action trading post. 2 trades, both short. Shorted prior day resistance near 1181 w/ 3BR entry. Exited on bullish 3BR confirmation. +7.5 2nd short, expecting former support & open range low becoming resistance. Anticipated the short w/ close stop to limit risks. Closed trade on bullish formation in 50 tick chart, expected a bounce from 1163 yesterday's close. +6 Could have held the 2nd short a little longer... but I'm just a beginner. I'm happy with the low risk trades that worked out. Also gave Morgan Stanley a small beating w/ similar trading concepts. Using ESResistance's numbers as confirmation to my own S/R lines. I use the numbers more as "Zones" where I pay attention to reversal formations that I look for. I used to enter on these formations in between areas of S/R... beginner's mistakes I suppose. The failures of those patterns was mentally painful... I try to be more selective about the trades now. Going to the office... then to golf course. Life is good today =) Good trading all, Stone
Hey Stone WTG! on a good day. Just wanted to be clear about something, I also view S/R as zones, however the number i quote is where I believe that price is most likley to hit. I look for a set up +/- up to 1.5 points from the area usually Well done again buddy.
very interesting the action at 12:59 and 13:09.. I'm still a bit trigger shy though. didn't participate earlier either because I saw alot of congestion and didn't know the direction. thanks for the levels today, I figure I should first see what happens at the levels and become more familiar with $TICK and BB's price action. edit: whoo, just got 2 points .. saw a red spinning top at 11:29 and because of strong rally earlier I figure I should take longside trades with 55.50 becoming support, and 20EMA was lining up with 55.50, maybe I got lucky or is it the analysis? grabbed a bite to eat, saw the action at the 13:35 after it had happened, wow! just wondering, would you have shorted, looking at strong long activity earlier and witth $tick not as extreme as should be?
ESR...impressive reversal on your 1137.0!! You got that level from 3+ years ago, and it's still relevant?
Hey Sandy actually got that level from 2003! Its amazing how historical price can work so well! A perfect example for you that happened fairly recently, I swing trade fx also and used levels from the early 80s to catch the top on the AUDUSD, I was barely past my 1st bitrhday when that level was last hit! Its amazing how powerful S/R can be.
You mean 13:29? That was a very nice trade. You had $TICK extreme Price was in a strong trend and reverted to the midline our dynamic support, in a S/R area....Absolutely perfect trade! Very well done. At 13:35 the $tick extreme was ok, Hitting the bands is still decent, obviously your preference would be for it to be outside the bands but still good. You really seem to be getting it...great stuff mate.
This is a great thread. I've read through half of it plus some of the most recent pages. I do have a question for bbq. What type of setups do you use and where did or are you learning your setups? I'm new to daytrading the ES and any tips will be greatly appreciated. Thanks