Primarily identifying probable support/resistance zones by reviewing recent historical price action. I use chart patterns (reversal bars and buying/selling tails) to confirm reversal points before entering. I use RSI to help confirm a high-probability entry point. I use close stops (typically <2 pts on the ES) to limit losses if the market fails to reverse where I expect it to (so I can be wrong 2/3 of the time and still be profitable). I raise the stop to break-even as soon as possible if the market reverses as predicted. I start trailing the stop to protect profits as the market approaches overhead resistance levels.
Apex82 is the master of this strategy. I am only a lowly and humble apostle trying to learn how he does it.
