Here is the start of an "idea string" for you as to what might get you thinking - "string theory" works! Lets say 1262.00 was your significant s/r level - Bracket trade long account - http://www.ttrader.com/mycharts/display.php?p=40005&u=5pillars&a=5Pillars&id=1699 Bracket trade short account - http://www.ttrader.com/mycharts/display.php?p=40006&u=5pillars&a=5Pillars&id=1699 (*** DISCLAIMER*** Trademaven is shown for backtesting purposes only and is not being shown as "advice" to use this platform for real trading - LOL! ) How you manage, space out from s/r, or enter/exit bracket trades is up to you - but I am just trying to throw out some ideas for you to have a starting point.
And you can make the trade to fit your risk level, it is all up to your choice and profit goals per trade - Long account - http://www.ttrader.com/mycharts/display.php?p=40007&u=5pillars&a=5Pillars&id=1699 Short account - http://www.ttrader.com/mycharts/display.php?p=40008&u=5pillars&a=5Pillars&id=1699 The mechanics of congestion at these levels is the hard part, but I will tell you right away it can be figured out - just open up your mind.
================= SportsMatt; Thats a good one. Underlying stock trends help also; they tend to show in YM, ES. As Jeff Hirsch/Stock Traders Almanac so wrote; first days of the month [like mostly first week of MAY=up, not June] occasional middle days [like next week , these tend to be up-support may hold] last days of the month, tend to be up, [even if up weaker in downtrend, like last uptrend in May looked to clear 50dma but did not]] In other words , after the middle of month, because of May/JUNE monthly , weekly ,daily downtrends; resistance can be stronger than support simply because of downtrend action,50 period average downtrending . Its an obvious probability on intraday charts also.
You defininetly should be watching the ES(S&P 500 mini) contract. At times the Dow will have a mind of its own, but normally it will ride the wave of the S&P 500.
There are a lot of factors to consider. Did the market open gapped up or down ? How extreme was the move to where you are shorting or going long ? Is a key reversal time approaching ? Do you see how support became resistance for the past 3 days ? http://quotes.ino.com/chart/?s=CBOT_YM.M06.E&v=i
OK what support/resistance? On what timeframe chart or on what size of tick, range or volume chart? Now price if at an expected support or resistance, can and does overlap them even if ultimately price appears to respect them for the moment. How are you handling that? Bottom line: support & resistance play will not make you your fortune whatever merits or demerits are argued for it.
sm37 A site that is good at s/r is tradestalker.com, you can check out his nightly updates for free on a one day delay basis. May help confirm areas you find. Another thing to look at that I found priceless is a thread about market profile by Bolter. Cant find the link now but if you search for his name and scroll back a ways you'll find it. There were lots of posts.