Market reacted well to the 1235.00 area making a high at 1234.50, I did not have the best set up so did not take the trade. It has already moved 3 points!
Indicators are liars! Support and Resistance Trading for the S&P emini
- Thread starter ESResistance
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Employment report @ 8:30 am est.
Very important bit of economic news approaching
http://fidweek.econoday.com/calendar/US/EN/New_York/year/2008/month/09/day/05/daily/index.html
This link should be a staple part of everyones market prep.
When their is a major news event all bets are off. The odds of our numbers working is decreased dramatically, because the reaction to the news can be so explosive.
So please step aside and let the news do its thing.
http://fidweek.econoday.com/calendar/US/EN/New_York/year/2008/month/09/day/05/daily/index.html
This link should be a staple part of everyones market prep.
When their is a major news event all bets are off. The odds of our numbers working is decreased dramatically, because the reaction to the news can be so explosive.
So please step aside and let the news do its thing.
Face it.........any child can look at a chart and tell Dad or Mom what the trend is. Support and resist is what i use to trade and live by. The easier part is seeing where the supp/rist should be........the ART part is what to do relative to the price action when price gets to the said level.
Whipsaws at levels must be handled. Should you go the other way on the first test failure? Maybe the second or third, etc. Do you filter the breakouts at the levels?
Point being.............. looking at a chart and pivots (supp/rist are pivots) just seeing them is the easy part, the real question that must be answered by the individual taking the trade is what to do with the signal.
Once filled is where the rubber meets the road. Thats the fun part.
Speaking of "FUN" time for the jobs report, the BIG SALAMI.
Whipsaws at levels must be handled. Should you go the other way on the first test failure? Maybe the second or third, etc. Do you filter the breakouts at the levels?
Point being.............. looking at a chart and pivots (supp/rist are pivots) just seeing them is the easy part, the real question that must be answered by the individual taking the trade is what to do with the signal.
Once filled is where the rubber meets the road. Thats the fun part.
Speaking of "FUN" time for the jobs report, the BIG SALAMI.
ES, if your numbers are hit but you are unable to take them (ex., news event, pre-market, etc.) do they become invalid if the market returns back to the level later in the day?
It all comes down to odds...when news smashes through a number it reduces the odds of that number working, however it can still work (if you have a set up). Perfect example just now, the 25-26 area got smashed by the NFP report. The market then went back up to that area with a high of 25.75, PREVIOUS SUPPORT BECAME RESISTANCEl and I have just seen the market move lower from that its now at 21.00. Was good for 4 points.
I did not take this trade however because I didnt have a set up and because of the news.
EDIT: I take most of my trades in the pre market, I am UK based so it suits me to do so.
Hi epetrov,
There are dozens and dozens of diferent ways to come up with Support/Resistance lines or zones.
Some folks use simple or complex mathmatical calculations (many free programs on the web for such and some proprietory).
Other folks don't use math but use visualization of where they thought there was a key change in supply/demand (e.g. swing point).
Thus, I suspect your question is how is the OP (ESResistance) deriving his s/r level???
Also, the OP has use the word setup in this thread many times without explaining what is his trade signal.
Therefore, he's only taking trades at a s/r level when/if his setup (trade signal) appears.
A setup could be any thing like a simple chart pattern, time & sales analysis et cetera.
Thus, it seems like your other question is what are the setups (trade signals) he's using???
Yet, as I continue to follow this thread, the OP has now stated he's just relaying the info from someone else that's computing the information.
Therefore, we now know the s/r levels are determined by someone else but I'm not sure if the setups (the trade signal details not discussed so far) belong to the OP or belong to this other person that writes the blog.
Simply, the OP may not be allowed to disclose the calculation of the s/r level nor the setups (trade signals).
Hopefully the OP can shed some light on the above.
Mark
ES said:............. Perfect example just now, the 25-26 area got smashed by the NFP report. The market then went back up to that area with a high of 25.75, PREVIOUS SUPPORT BECAME RESISTANCEl and I have just seen the market move lower from that its now at 21.00. Was good for 4 points.
I did not take this trade however because I didnt have a set up and because of the news.
>>>>>>>>>>>>>>>>> So in other words it was ONLY good for 4 points if YOU took the trade. Another paper trader.
I did not take this trade however because I didnt have a set up and because of the news.
>>>>>>>>>>>>>>>>> So in other words it was ONLY good for 4 points if YOU took the trade. Another paper trader.
Hi I...Me/Myself and I determine/research and define the levels.
My little brother who is 14 and on his summer holidays puts the worksheet I make up on the blog, he wanted to make a little money over the hols
Quote from ESResistance:
Hi I...Me/Myself and I determine/research and define the levels.
My little brother who is 14 and on his summer holidays puts the worksheet I make up on the blog, he wanted to make a little money over the hols
Thanks for the clarification that the someone else you mentioned earlier that manages your blog is your 14 year old brother although your the one that gives him the information.
With that said, how are you deriving your s/r levels and what are your setups?
I'm not asking the above question for myself but I am asking it based upon a few comments by others in this thread.
Thanks in advance.
Mark
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