Approach to trading the ES contract

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Now some may not like trading off a 22500v chart. It gives the broad strokes of price movement but disguises the tests are retests that I like to use for entry and exits

So lets take the same chart and type in "3000V" (for Esignal users) and here is what we get with the added detail that helps to see where tests and retests occur.

As can be seen in the attached chart segment, price tests and retests, providing some nice entry points.
 

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Rather than go through the entire chart, I will leave further analysis to the reader (I have my own homework to do this evening).

The main points to remember are as follows

Using a chart showing the previous day's action, put in your primary S/R lines. You want to place these horizontal lines at swing highs and lows. The charts in the previous examples are 22,500V. You could use 60, 30 or 15 minute bars or candles. The shorter the time frame, the more granularity (more lines/more definition) and thus it could be a little more confusing to new traders. I suggest sticking to the broad strokes at first until one gets used to doing this kind of prep.

Trading from these examples one would want to include a filter. That filter could be $ADD, or $VOLD, $Tick, $Prem, or whatever you find helpful. I included Market Profile numbers to show how they add value to a trader's decision making process.
 
I received a question relating to my premarket analysis of support & resistance this morning so I will post a couple of charts showing how I put this lines in

The first chart attached shows the premarket as it looked Thursday night
 

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So when are you going to start your own website and mentor for a fee? That’s were this will lead. Seen if so many times.

I thought of recording my thoughts hereon ET, but it seems sort of stupid. So I just do in word and excel. And compile my thought there. Why submit yourself to the negative energy here unless you plan on luring in folks.
 
I posted a comment and reading it, decided I did not like the tone of it. Here's another try

First, I think there are problems associated with communicating on the Internet. I think this comment by Mxjones sums it up accurately.

http://www.elitetrader.com/vb/showthread.php?s=&postid=2465116#post2465116

As far as your comment Roman Candle, I think I understand your cynicism. In fact to some degree I tend to be cynical myself. I think however that as I get older I want to make this world a place where at least once in a while, one can find a decent person willing to help, without having their hand out. In spite of my own cynical nature, I have met such people and frankly that is what I would aspire to.

As a practical issue, I don't particularly like to teach. I find it is difficult to do well, and unfortunately the teacher-student relationship does not always work out the way we might hope. One sad truth no one wants to deal with is that there are some folks who are simply don't have the talent necessary to make it in this business. I am sure vendors make money doing this, but there is a dark side to it that I don't have the stomach for, and since I don't need the money, for me at least, it just isn't worth it.

I plan on doing what I do best. I comment on things, I point people in what I believe is the right direction, and at some point in the near future I plan to stop and fall off the radar. I hope some of you benefit, as I know I have, from the many decent folks I have met here. Its the best I can do.

Best Regards
Stevesbg
 
This post for XB and others who have commented on using S/R to obtain entries/exits

Prior to the open we did our standard worksheet and added lines for the Globex

Market Profile showed VAH at 939.25 and VAL at 933.75. Normally we would expect price to test down first to find sellers. If no joy there, we look for a long to go back up to determine acceptable value.

On this date, price simply moved straight down as can be seen on the attached chart using 5 min candles. Clearly the market found sellers. We saw paper sellers in the pit early. Even if you missed the opening trade, you had another shot at it as price took out our resistance just below 927.50. Also note the confluence of pivots in that area. The re-test of (now support) occurred around 7:00am PST, followed by the failure move down, you got your 10 pts at about 8:10 pst.

Monitoring $VOLD and $ADD would have helped a trader to stay in the position long enough to get the most out of this move down.
 

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