Price action , support resistance does not work in ES

Discussion in 'Index Futures' started by spudpei, Feb 26, 2021.

  1. spudpei


    During red days, price action and s/r levels don’t work. What does work for something as volatile as ES?
    murray t turtle likes this.
  2. Yesterday was a relentless trend day down on ES. On these kind of days levels usually offer either a weak bounce or gets cut through like a hot knife through butter. My theory is that 'normal trading' is suspended on these days and someone simply wants to sell, sell, sell.

    On a day like yesterday the optimal trade is simply trend following, IMO. These straight trend days down are somewhat rare as far as I can see, but they do happen once in a while. We had one earlier this year and the last one prior to that November last year.

    Most other days where we've had a large drop usually are usually countered by a strong counter move and even one that's bigger than the preceding drop. Think Tuesday.
  3. maxinger


    you were talking about trading yesterday US session.

    NQ is much worse than ES.
    the problem was not because NQ & ES were volatile.
    their movement was messy, chaotic, jerky ....

    Nikkei was also volatile.
    But Nikkei was very trendy and hence easier to earn $.
    rb7 likes this.
  4. LOL! Good one.

    Bad_Badness, Tradex and CALLumbus like this.
  5. Often the case.
  6. SunTrader


    I posted this one minute chart yesterday (after close) on another topic.

    Granted this is the cash index - SPX - not the futures - ES - but the same basic results would be found on that chart as well:-
    SPX res.png
  7. wrbtrader


    Is there a reason why you did not post a chart after announcing s/r levels don't work to show the type of s/r levels you have been using ?

    Take a look at chart below by SunTrader, if s/r levels don't work for you to contradict the s/r levels shown on the chart by SunTrader...

    It only implies you're using different s/r levels and not that they don't work.

    Sprout and guru like this.
  8. what a stupid effin' post. YOu realize snp 500 is composed of 500 stocks right ? So if big players want to deleverage their positions and sell like say due to the 10 year rising, support and resistance doesnt matter if everyone selling.

    Like everything in the market, everything works some of the time. The key is to know when it works and when it won't.
    tayte, yc47ib, Nobert and 1 other person like this.
  9. Thank you. I say that all too often, and thanks to you, I don't have to this time. :)

    Note... When S/R "doesn't work"... Price TA is still working. When S/R breaks, when you expected it to hold... as you should expect... that tells you something valuable too.
  10. The ES is simply the hardest instrument to trade. (Almost) nothing works there, for various reasons. Why people flock to it ... well, yeah, right, there is a whole industry out there telling gullible newbies that the ES is easy to trade. People doing that are either lying or totally clueless.
    #10     Feb 26, 2021
    murray t turtle likes this.