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. I live in an area where the Amish are considered the best craftsmen. But over the last few years I've seen them improvise steam power to add power assisted nail guns and power saws to their tool box to increase efficiency.

    Does this mean they are less of a craftsmen because they choose to improve on the efficiency of their tools?
     
    #401     Sep 24, 2008
  2. fwiw ... I prefer the smoother flow of volume charts since they best represent the order flow.

    My opinion of tic charts is that they give equal weighting to every strike regardless of contract size which rather buggers up my approach.

    What I like about ES is it driven by big volume generated by large strikes.

    These strikes are programmed and placed by very clever young men/women, far to clever for me with their huge machines and direct lines into CME.

    And so because they are clever and logical I just follow along behind watching their footsteps.

    I must say for clever clever people they are remarkably predictable and all I do is take their predictable action and place it in front of them by way of a limit stop.
    They do all the work, not me... a little bit like judo really.

    There are places in the market where two or more big players can clash with an unpredictable outcome.... best to avoid these spots which in themselves are predictable.

    There is nothing clever about what I do or anything on my screen.
    In fact I prefer to concentrate solely upon the effect that volume (bid-ask) is having on price and so I have a few things that I drop into my RH margin to unfold at the appropriate moment in front of me.
    Even something as simple as a warning just prior to a news announcement pops up before my very eyes, otherwise I am so intent on the screen that time melts.

    I do like to hear T&S filtered >99 through the speakers. Bids and asks have different sounds and I know that once a critical price is reached and there is an eventual silence followed by a sound that some brave soul has entered a big MO ... I know, I know it is not perfect.

    All I am trying to do is keep my winning margin high and my entry close to my stop.
    If I thought that RSI, MACD, CCI would help I would use them.
    It is not because I think that they are lagging, that is in the mind of the beholder and in fact I could show you how to use them to reach beyond the RH margin.

    It is just that they repeat what I already know.

    regards
    f9
     
    #402     Sep 24, 2008
  3. ESResistance,

    1285 level this morning has been amazing so far! nearly every time it touched it the 1 min bars had jumped out of the bollinger band AND the $tick had done the same. Very cool to see!
     
    #403     Sep 24, 2008
  4. The level I think was 1185.50 and it was not only the low of the day but it was an oscillation support level as well.

    Here is a graphic (showing strength) of all of the oscillations that have occured from the open that played into yesterdays low and the coordinated "Trend" associated with this particular chart.
    Every oscillation will be challenged and the outcome of that price challenge will either be price making a HH or LH (resistance), LL or HL or an exact match. Breakthrough show strength for price to continue in that particular direction and failures to breakthrough shows price weaking or reversing immediate direction.

    On this chart we see a perfect example of price/oscillation consolidation at a bottom.
     
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    #404     Sep 24, 2008
  5. Yes some days the levels work over and over, its always nice, keeps trading simple. 85.50 was my number its important to view that as an indication/area to watch not just a specific number. <strong>Your entry is based upon your set up and price action.</strong>

    Unfortunately screen time and eye strain is the price you have to pay to get your timing, DOM use and ability to read market action spot on.
     
    #405     Sep 24, 2008
  6. monti1a

    monti1a

    ....and once you reach an even higher level in your trading..you realize that there is no ONE way to trade. There are profitable PA only traders, just as there are profitable PA & Volume traders, just as there are profitable traders that don't even look at charts, just as there are profitable....indicator based traders :eek:

    The market offers us an unlimited number of opportunities in almost any form if you would just open your mind.
     
    #406     Sep 24, 2008
  7. 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
     
    #407     Sep 25, 2008
  8. bbqbbq

    bbqbbq

    Have you read candlestick charting by steve nison?
     
    #408     Sep 25, 2008
  9. Yes I have his book, and met him a couple of years ago.
     
    #409     Sep 25, 2008
  10. bbqbbq

    bbqbbq

    wow, did he give you tips? :eek:
     
    #410     Sep 25, 2008
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