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 appreciate you opinion but don't know your experience. Myself, I have studied pure price movement for almost 15 years. And what I mean by that is price without the distraction of any indicators. I do use a single indicator to confirm price movement when I try but my research was soley about pure price movement. We seem to move along the same paths but let me clarify what I've found.

    Allow me to give you some proofs/facts. (These are things I can PROVE)

    1. Volume (shown inside the right chart environment) will help show directional strength of price not specifically the direction.

    2. Markets never move "sideways" or "chop". Those terms are used by people that are unfamiliar with the pure reading of price direction or strength.

    3. Price moves within charts and within those charts price will consolidate in ranges (sometimes tight) before breaking out in one direction or another but NEVER does it move "sideways" or "flatline". Be specific and stop using general subjective terms. Price oscillates and learn to read those oscillations for what they are . . . perfect cycles of price movement.

    4. Trends, that are specifically defined, only exist on charts. It is impossible for Trends to exist in "Markets" because everyones view of a "Market is different. Someone viewing the Crude Oil Market on a Daily chart sees an extended Bull Trend but someone viewing the same Crude Oil Market on an Intraday Chart sees a strong Bear Trend. Again . . . be specific and eliminate the variables.

    5. No, volume alone cannot describe the entire story of any chart price movement but without the clarity of volume embedded in a chart the noise, as it drowns out the plot, is almost deafening.

    I really love this forum when it gives us all the ability to share. Personally verify whatever you learn here and never take what someone says or someones opinion at face value. When it comes to trading or investing the only person you should ever trust when you are setting in front of your computer screen is yourself. Confidence can't be bought it is acquired.
     
    #531     Oct 11, 2008
  2. Thank you for sharing your accumulated knowledge. I agree with you on your points here. What I called "Sideways" and "Chop" on one time frame is the representation of what is an oscillation and range bound movement on another smaller time frame.

    I suppose that I point that out because I have repeatedly lost money trying to trade those "sideways" "chop" periods using methods suitable only for trending periods in that same timeframe. The answer must be to not trend trade that time frame during these periods or to switch down to a lower level and trade that range.

    I have a large weakness I am putting an end to: Overtrading. Tryign to trend trade in a consolidating range is merely throwing money down the toilet. Small BE winners & full stop losers. Not profitable.
     
    #532     Oct 11, 2008
  3. 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
     
    #533     Oct 13, 2008
  4. pismo10

    pismo10

    The oscillations seem to turn fairly slowly giving you time.
     
    #534     Oct 13, 2008
  5. ESResistance,

    Do you always trade the reversal of those key levels. Do you also enter trades when price breaks through them?
     
    #535     Oct 13, 2008
  6. 1 of 2 things can happen at a level, it can either break or reverse. I do trade break outs occasionally, however my personal preference is for the reversal trade.

    I know many people that trade only Break outs and are successful, they tend to base their levels upon smaller time frame levels.
     
    #536     Oct 13, 2008
  7. I use smaller time frames thats probably why I see more opportunity on the break.

    Thanks.
     
    #537     Oct 13, 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
     
    #538     Oct 14, 2008
  9. pismo10

    pismo10

    I agree with your trend comment, every time frame has it's own trend very often. Very hard to nail down. Once they are all in sync often it is too late.
     
    #539     Oct 14, 2008
  10. This is why it is imparative to only make your "trading decisions" off a single chart.
     
    #540     Oct 15, 2008
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