Just finished doing my homework and here are the S/R lines by time frame
First the daily chart
First the daily chart
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Approach to trading the ES contract
- Thread starter StevenBruce
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Quote from stevesbg:
240 min chart
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is it correct to say that you add the s/r lines cumulatively on each chart? for instance, do you add 60min s/r and then move to 120min and add more s/r over-top of the already drawn 60min s/r, etc. all the way up to daily?
thanks
Yes sir, I look at each time frame and add S/R as I see appropriate.
If you stop and think about it as you progress to smaller time frames, you are likely to see more granularity and so there are going to be more places to put S/R lines. There is an art to this.
I try to restrict S/R lines to places where I see previous turning points or where I can connect two or more previous highs or lows
I hope that helps
If you stop and think about it as you progress to smaller time frames, you are likely to see more granularity and so there are going to be more places to put S/R lines. There is an art to this.
I try to restrict S/R lines to places where I see previous turning points or where I can connect two or more previous highs or lows
I hope that helps
Today was a "textbook" day previous to an economic event or report.
First we have the "context" as follows;
Previous day was volatile with good size range to the downside.
Most participants expected a continuation move off the open
Instead, market volatility contracts and we have less volatility and a "dull" low volume market in front of the FOMC statement tomorrow.
I have marked the overnight highs at 894.25. I always look for previous highs/lows in the premarket just prior to the open. They are the most obvious targets for tests and retests
In the attached chart you can see how price opened near the support line but then probed up to test the previous high. Just coincidentally price "happened" to be in the vicinity of that previous high just as the housing report was released. A short entry there took only 1 tick heat before moving down to test the bottom of that range and test the previous lows.
As I have said a few times before, I am always looking for 10 pts. and again we see (just coincidence I am sure) that price continues its move south until we have a 10 move off of the high.
As seen in the chart, price then moves back to test the low end of the range, comes back to retest, setting up a nice long trade back into the range.
These elements are obvious in hindsight OR if you have sufficient experience to anticipate the moves. If you stop and think about it the choices are limited. Price either moves up, consolidates or continues its trend move down. I was taught that "markets breath, just like people", and this is where the market decided to "catch its breath", prior to the event tomorrow
Seeya
First we have the "context" as follows;
Previous day was volatile with good size range to the downside.
Most participants expected a continuation move off the open
Instead, market volatility contracts and we have less volatility and a "dull" low volume market in front of the FOMC statement tomorrow.
I have marked the overnight highs at 894.25. I always look for previous highs/lows in the premarket just prior to the open. They are the most obvious targets for tests and retests
In the attached chart you can see how price opened near the support line but then probed up to test the previous high. Just coincidentally price "happened" to be in the vicinity of that previous high just as the housing report was released. A short entry there took only 1 tick heat before moving down to test the bottom of that range and test the previous lows.
As I have said a few times before, I am always looking for 10 pts. and again we see (just coincidence I am sure) that price continues its move south until we have a 10 move off of the high.
As seen in the chart, price then moves back to test the low end of the range, comes back to retest, setting up a nice long trade back into the range.
These elements are obvious in hindsight OR if you have sufficient experience to anticipate the moves. If you stop and think about it the choices are limited. Price either moves up, consolidates or continues its trend move down. I was taught that "markets breath, just like people", and this is where the market decided to "catch its breath", prior to the event tomorrow
Seeya
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