Indicators are liars! Support and Resistance Trading for the S&P emini
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Cracking set up for this long!
I however missed it by a tick
I hope some of you were able to jump on it.
Im now done for the day : )
I however missed it by a tick
I hope some of you were able to jump on it.
Im now done for the day : )
lol jinx stone.
Plenty more trades out there my friend : )
Always another trade...always another day to trade....
Never chase a trade.
Some interesting set ups today. Lets use 51.75 as an example
51.75 initially got blasted as support at 10:57.
At 11:04 old support became resistance, short at 51.75 was very pretty. Good short with trend
At 11:21 51.75 was used as resistance, small retrace, nothing spectacular.
At 11:35 51.75 again became support, with another nice move.
What I am trying to highlight with this example is that 1 of 2 things can happen at a level, it can either hold or get broken. And that the levels can alternate between Support and Resistance. More often than not the level holds, and you can make a great living from trading S/R reversals on their own (using just the levels).
Looking for a good set up at a level really gives you the edge, and can help you pick and choose which levels you take.
So please do look for set ups at the levels using your own system.
Have a good one all.
51.75 initially got blasted as support at 10:57.
At 11:04 old support became resistance, short at 51.75 was very pretty. Good short with trend
At 11:21 51.75 was used as resistance, small retrace, nothing spectacular.
At 11:35 51.75 again became support, with another nice move.
What I am trying to highlight with this example is that 1 of 2 things can happen at a level, it can either hold or get broken. And that the levels can alternate between Support and Resistance. More often than not the level holds, and you can make a great living from trading S/R reversals on their own (using just the levels).
Looking for a good set up at a level really gives you the edge, and can help you pick and choose which levels you take.
So please do look for set ups at the levels using your own system.
Have a good one all.
Hey everyone had someone ask why I think Indicators are useless so I thought it might be worth sharing my thoughts with all of you.
I dont think Indicators are useless, indicators can add value if used appropriately. Let me give an analogy of my thinking towards indicators. You're about to go out to a dinner party and are getting dressed, now the CORE of your outfit, will be your suit, shirt, socks, underwear and shoes. These core elements are what make up your attire for the evening and are all pretty important for you to wear as these are the things people will look at most. As an ACCESSORY you happen to wear some cuff links, just to complete the look.
In my method I believe that Support and Resistance in confluence with pivots, MP and fibs is your CORE as these are the things people will look at most. And that Indicators should be the ACCESSORY just to "complete the look".
Now you wouldnt go to a dinner party just wearing cuff links now would you?!
I dont think Indicators are useless, indicators can add value if used appropriately. Let me give an analogy of my thinking towards indicators. You're about to go out to a dinner party and are getting dressed, now the CORE of your outfit, will be your suit, shirt, socks, underwear and shoes. These core elements are what make up your attire for the evening and are all pretty important for you to wear as these are the things people will look at most. As an ACCESSORY you happen to wear some cuff links, just to complete the look.
In my method I believe that Support and Resistance in confluence with pivots, MP and fibs is your CORE as these are the things people will look at most. And that Indicators should be the ACCESSORY just to "complete the look".
Now you wouldnt go to a dinner party just wearing cuff links now would you?!
I have been trading for the past 15years, more than 12 years in Futures, and I use a simple Momentum/RSI/MA indicator system with S&P futures in 5-m and 60-min charts and ES in 1-m and 5-m charts. The fact is every trading system requires something from you - can you maintain your composure, think lucidly, act on the buy/sell trigger, recover after a few losses, do not get complacent, keep the ego in check?
The truth is all these indicators are simply tools for you to use; your success or failure depends on you use them.
Fib is a complete and total waste of time. Several serious studies of fib levels and round numbers proved they are no more useful than any other level.
I think the important part of trading is minimizing risk at entry. I have seen studies by Van Tharp that show even random entry with position sizing (risk management), intelligent exits & stops make money. If random entry can be profitable... I have to think that adding a few items that tilt the probability in your favor should make you an even better trader. Whether it's an indicator, fibs, alignment of the stars signal, Superbowl Winner, Groundhog appearances, Support/Resistance... it could all potentially work. However, I think it's best to go with the greatest common denominator.... everyone with the charts or tape sees the support & resistance plain as day. Not everyone has an MA with x time periods or Stochastics with X Y Z timing. The indicators generally don't tell you when prices are congested and when they are trending. I would say that congestion detection and trend recognization are extremely important to consistent success.
Best regards,
Best regards,
You'll all be surprise at how many price action only traders or traders that use indicators do not use support & resistance areas as part of their trade methodology.
I took an in-depth survey once and most traders did not use support/resistance or many where confused about what is (where to plot) support/resistance based upon dozens of different ways to do such.
S/R can be tricky just like indicators...many different ways to change it, plot it and unecessarily plot too much on a chart.
In fact, I've seen some popular price action only traders here at ET that use s/r levels as part of their trade methodology poke fun at other price action only traders that use s/r levels about having too many lines plotted.
There's another forum (won't mention it's name) where there's a free s/r level plotter called a pivot calculator that post 3 different types of results and the results can be hugely different (mathmatical calculations).
At another forum (won't mention it's name) the members share their s/r levels.
Someone there decided to keep track and concluded there were 17 different types of mathmatical calculations and 25 different ways to visually plot your s/r levels.
S/R levels or zones are not trade signals.
Instead, they are a price area that's been identified as a change in supply/demand that traders can visualize and possibly exploit with what ever pattern/trade signals they are using.
Simply, it's a losing effort or subjective to just randomly sell a resistance area or buy a support area.
That's where market experience (intuition) and/or pattern signals (objectivity) determine what type of trade to place when a s/r level or zone is reached...
* Short resistance or Long resistance
* Long support or Short support
My point is that it's an illusion to think that s/r levels are easier to plot or trade than indicators.
Easy is just a perception from one trader to the next.
Thus, what's easy to me may be difficult to you while easy to someone else.
Can use of a s/r level or zone be made simple in their use...
Yes.
Can use of an indicator be made simple in their use...
Yes.
However, does it really matter if it's simple or complex knowing the reality of the perception of easy/simple (rhetorical).
All we can do is find something that fits well with our personality (trading style) without assuming that what we do is better than someone else that's using something different.
If it's profitable...it's useful.
P.S. I'm a price action only trader (no indicators) that uses s/r zones.
Mark
I took an in-depth survey once and most traders did not use support/resistance or many where confused about what is (where to plot) support/resistance based upon dozens of different ways to do such.
S/R can be tricky just like indicators...many different ways to change it, plot it and unecessarily plot too much on a chart.
In fact, I've seen some popular price action only traders here at ET that use s/r levels as part of their trade methodology poke fun at other price action only traders that use s/r levels about having too many lines plotted.
There's another forum (won't mention it's name) where there's a free s/r level plotter called a pivot calculator that post 3 different types of results and the results can be hugely different (mathmatical calculations).
At another forum (won't mention it's name) the members share their s/r levels.
Someone there decided to keep track and concluded there were 17 different types of mathmatical calculations and 25 different ways to visually plot your s/r levels.
S/R levels or zones are not trade signals.
Instead, they are a price area that's been identified as a change in supply/demand that traders can visualize and possibly exploit with what ever pattern/trade signals they are using.
Simply, it's a losing effort or subjective to just randomly sell a resistance area or buy a support area.
That's where market experience (intuition) and/or pattern signals (objectivity) determine what type of trade to place when a s/r level or zone is reached...
* Short resistance or Long resistance
* Long support or Short support
My point is that it's an illusion to think that s/r levels are easier to plot or trade than indicators.
Easy is just a perception from one trader to the next.
Thus, what's easy to me may be difficult to you while easy to someone else.
Can use of a s/r level or zone be made simple in their use...
Yes.
Can use of an indicator be made simple in their use...
Yes.
However, does it really matter if it's simple or complex knowing the reality of the perception of easy/simple (rhetorical).
All we can do is find something that fits well with our personality (trading style) without assuming that what we do is better than someone else that's using something different.
If it's profitable...it's useful.
P.S. I'm a price action only trader (no indicators) that uses s/r zones.
Mark
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