I'm assuming you had support at these levels based on prices from previous sessions. My question is really whether you would adjust these levels based on todays action or if you would consider this level invalid and move down to your next level. I guess I felt the market was saying that it didn't care about my original 1337.75. The breakout had no increased volume, there was no follow through (which is the basis of our 2 pt strategy), and old support didn't become resistance like you might expect if 1337.75 was truely a good level. The market did say that bulls would support 1336. Assuming there was still 2 pts room below a 1335.50 entry, would anyone make this their new trade for further along in the day??? Sorry so long
I would not have changed it during the trading session. That can actually be very time consuming and distorts the S/R notion. Only change for the next day.
Thanks 4re. Everytime I think you've told me everything there is to know about this technique, you teach me something new. I can see why simple methods are critical. You can't get anymore straight forward than you're take on s/r and there are still a lot of possibilities to account for. I can't imagine if a system had numerous variables and different scenarios from the start. My numbers for tomorrow. Again, if you're just tuning in here, I'm a newbie and NOT profitable. Please don't use my numbers. I am never profitable (except today ). I post them for discussion purposes and to get comments from the other traders here!! First of all, a whole bunch of potential s/r numbers show up on the chart. So many in fact that it was a little difficult to find those with enough room to go for 2 pts - see attached chart. Here 'tis: Long 1 - 1345 to 1347.75 (this looks like pretty weak resistance only visable on the 5m chart) Long 2 - 1351 (this should be a good trade if it gets here) Short 1 - 1340 to 1337.50 (this is based on support in the morning bull flag) Short 2 - 1334.50 to 1331.75 (another good level here, intermediate low) Twink
i am on the sim so my money is still mine, but I noted that S/ at 1337 was taken out in the pre-market, so I lowered my short entry to 1336.50 and still lost 2. Then I took the first long signal (my choice too) at 1343.25 at 11:32 a.m. and was stopped out for -2 shortly thereafter. Apparently, I was the only one. So how does a guy time these things?
Unfortunately you can't always hit 'em. It is always easy in hindsight to go back and see what the problem was. The short just so happened that it was at the bottom. I could not do anything about it. But on that long I really doubt if you would have gotten filled on it unless you got your order in early for it. But you have to remember that every once in a while you will have 2 busted trades in a day. That is why I was very tense on my second trade today. It was the largest trade I have done since I started day trading the emini. And I went for 3 points at that. Now it is hard to believe for me anyway.
After I am gone you will still be figuring things out. Even a simple method will still have some variables. That is why trading is the hardest way to make easy money. I also think that is why program trading so far doesn't seem to generate the profits most expect. If they did everybody would have a blackbox and would be rich beyond belief.
Twink, You picked a difficult chart to try to find resistance on. When this happens I like to be conservative and only pick what I can confirm as resistance. Here are my numbers for tomorrow. Long 1351.00 Short 1340.00 - 1337 Good trading tomorrow, Gary
Man, what a mess! I hate trying to pick a spot on a chart like this. Probably for the best I won't be able to trade tomorrow. Good luck to those that do.
Yeah it wasn't fun when I looked at it the first time. Needles everywhere and nothing provided 2 points. I don't know if that will mean tomorrow will be choppy or if price will march right through all this mess. I guess we will know in the morning.