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

Discussion in 'Index Futures' started by ESResistance, Sep 3, 2008.

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  1. bbqbbq

    bbqbbq

    btw, thanks for the levels everyday :)

    just a few questions today

    do you try to get out of trade break-even fast if market doesn't move your way, a down bar after the first close below your level? example 12:43

    also, would you consider 5.75-7.25 as new intermediate level?

    i watched todays action, 97 worked well for a point as support, or several points as resistance, 87.50 worked well as support, but only if you got a fill, which I wouldn't have hypothetically got.

    I think only closes below the level are reliable, not touchings itself, am I correct or what is your experience?
     
    #381     Sep 23, 2008
  2. bbqbbq

    bbqbbq

    sorry I didn't answer a while ago, answer is i don't have a set-up, just watching charts everyday and hoping to learn set-ups

    I'm new to this just like you, I'm only 2 months old figuratively:p
     
    #382     Sep 23, 2008
  3. ESResistance,

    Thanks for posting your levels each day, it has been great help. I too worked in IT(still do), and am hoping to be able to trade from home and have that freedom some day.

    I have read this thread from beginning to end and was wondering if you could give more insight as to how to trade around your support / resistance areas? You mentioned explaining this several times and wrote a bit about the $TICK and bollinger bands. If I understand correctly, if price moves down to one of your support areas, and the $TICK spikes up, and you are down outside of the bollinger band, you go long? Is that the basics?

    Thanks in advance.
     
    #383     Sep 23, 2008
  4. My first thought in every trade is to limit risk. If I have entered it is because I think I have an edge, if for some reason the edge has diminished, for example the market is not reacting quickly enough, I try to exit as close to BE as possible. Only screen time, practice and study after hours can teach you to "read" the market.

    Although in my worksheet I have quoted a specifc number. I view the number as an area, and look for a set up around that area. Sometimes my set up can be as much as 1.5 points away from the number. The closer to the number we are the better.
     
    #384     Sep 23, 2008
  5. Well they say a picture says a thousand words....Ive got 2 for ya!

    Attached is a pic of my 1 min chart and my 1 min $tick chart.

    When we get close to a level this is what I am looking for on both. This is an example at the 87.50 level earlier on today.
     
    #385     Sep 23, 2008
  6. and heres that second pic.

    Notice how they both have extremes? by themselves these plays have good odds, combined with S/R they are great.
     
    #386     Sep 23, 2008
  7. Johno

    Johno

    Hi f9,

    quote:-

    "There is much to know, and almost as much to disregard until you learn to bring the key ingredients together to tell a continuous story."
    --------------------------------------------------------------------------------

    There is certainly a profound truth in this comment, one of E.T.s nuggets. Once you achieve "Clear Thinking" the tools and techniques required become obvious!
    The power is in the mental approach more than the tools used.

    Regards
    Johno
     
    #387     Sep 23, 2008
  8. 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
     
    #388     Sep 24, 2008
  9. Glad to be of help Johno.

    ES is a streaming input of FIFO orders at the bid and at the ask.
    They impact upon each other on the DOM causing price to move tic by tic.

    More than 85% of the contracts are placed by less than 12% of the strikes which means that ES is driven by volume. ( 1 strike of 900 contracts will overwhelm 500 strikes of 1 contract at the same price) one strike = one order by the way.

    Bring up a range chart of one tic value and plot the volume at the bid and at the ask alongside and slowly scroll through.
    Look for overwhelming vol one way or another and look which way the price moves.
    You are looking into the heart of ES.

    Probably best to do this in the weekend or when things are quiet if you wish to retain your sanity.

    regards
    f9
     
    #389     Sep 24, 2008
  10. hehe I thought I was the only one that knew how to do that. good post, f9.
     
    #390     Sep 24, 2008
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