Approach to trading the ES contract

[veggen]

Hey stevesbg, thanks for a great thread. I really like your way of looking at the market, and have learned a lot from your posts!

Please, just ignore all the trolls desperately trying to make themselves sound like skilled traders by writing worthless nonsense. They pop up in most threads that actually have some value.

 

[xburbx]

Here's whats going to happen. People are going to piss the OP off and he is going to see this as a waste of time. If you are trying to pick his methods apart , please just dont type anything and read another thread. It takes less energy and time to close the window than it does to type a response.

 

[quotetrader]

Please keep posting- I just fouind this thread and am getting into it

 

[StevenBruce]

Here is tonight's pre-market analysis of the recent action, looking to quantify suppport and resistance

To obtain these S/R areas, I review charts on several time frames including 60, 120, 240 and 300min. I do this because I am trying to determine areas where price has tested multiple times AND trying to find "wide range bars". Both situations can provide possible targets for price during RTH.

On a related subject, one could use these S/R areas to obtain possible targets for trading the overnight. I have found for example that economic reports released during the FDAX/Stoxx sessions often cause movement in the Globex (ES contract) overnight. A person interested in trading the overnight would want to monitor pending economic reports of interest to European investors & traders. One way to do this is to use the Forex Factory Economic Calendar. Here is the link

http://www.forexfactory.com/calendar.php

Good luck tomorrow

 

[athlonmank8]

thought it started off pretty decently.

 

[Michael.jstocks]

Quote from stevesbg:

I look for price to test once, and then I take a position based on the retest.

Any rules on playing the retest? Do you look for it to make a higher low and a break up before you buy it for example?
cheers

 

[StevenBruce]

Here is the same chart looking at the 15 min candles

Notice how price takes out the line and then retests

 

[StevenBruce]

and here is the same chart using 5 min candles

Notice how it becomes more clear as price retests but fails and falls.

In answer to the previous post, look at what a short entry at would have produced. We can't know whether price will recover and retrace back into the upper channel however you do have a couple of points cushion (and a scale out profit if you wanted it).

 

[StevenBruce]

Quote from Michael.jstocks:

Any rules on playing the retest? Do you look for it to make a higher low and a break up before you buy it for example?
cheers

I hope the preceding charts answer your question. I prefer not to give hard and fast rules as each trader needs to do a bit of research on this before they decide whether it is their cup of tea.

Personally while I look for confirmation in terms of up/down volume and other indications, hopefully as you move forward in this business you will understand that no matter how much analysis you do, the result of any single trade is random. Its only over a significant sample size that your edge kicks in.

 

[StevenBruce]

Here is the same chart with weekly pivots in place. Notice how price tested the weekly pivot and failed.