Indicators are liars! Support and Resistance Trading for the S&P emini

[cunparis]

Quote from ESResistance:

Liquidity wise forex.

I have not really had any problems trading forex. If you use a reputable broker rather than a bucket shop you should be fine.

Is IB ok? I hate to open another account because that would divide up my capital.

 

[ESResistance]

Quote from cunparis:

Is IB ok? I hate to open another account because that would divide up my capital.

IB is an ECN they have pretty tight spreads, but charge a commission (same as futures) comms are competitive, customer service a bit lax and the platform difficult to to use.

Oanda is pretty good. Spreads are pretty good.

 

[BlowFish]

Quote from ESResistance:

Hey Cunparis

I do also trade some fx and look at the 4hr and 1 hr TFs (I dont go lower than that for S/R

I dont know if the futures prices are the same, but if you look at a 4hr EURUSD chart and draw a line at 3116 you will notice it caught todays high to the pip. That area has been used as S and R fairly recently. I have marked up and attached the chart for you.

Its very important that if you are trading levels for reversal the odds of success are far higher using levels from 1hr time frames and above.

I swing trade fx mainly and have found using my BB set up in fx to be less effective. As such I base my entry ONLY on the level. No set up. I find a level I like on the 4hr chart, put an alert on my platform when I get an email on my phone telling me we are close to the level, I put my order in. My levels in fx are mainly derived from the 4hr chart.

The ES is a different beast it is much more responsive to S/R from the 1hr time frame and thus easier to day trade than fx (in my opinion).

Hope that helps

Hi ESR,

Do you look for any confirmation or trigger tha the level is holding before triggering your trade? (e.g. you like to see price 'bounce' of it a bit) or do you just place a limit at the line when price is close.

Thanks.

 

[ESResistance]

Hey BlowFish

I have described the set ups on the thread . In brief: Essentially you are looking for a extreme on the 1 min BB and the 1 min $tick (in market hours) close to your level to enter. You pay attention to price action and are looking for a slowing of momentum.

 

[cunparis]

Quote from ESResistance:

Hey BlowFish

I have described the set ups on the thread . In brief: Essentially you are looking for a extreme on the 1 min BB and the 1 min $tick (in market hours) close to your level to enter. You pay attention to price action and are looking for a slowing of momentum.

He may be referring to Fx where you said you didn't use your normal setup.

I've been putting a limit order and if I get filled then I manage the trade. The problem is guessing how the price will react to the support or resistance. I set my stop under support. I'm currently struggling with this because if the stop is too close I often get stopped out and then the trade goes in my intended direction. If I put the stop too far, as I did last night for the overnight, I got stopped out on gold for a $600 loss.

In fact I was thinking today that when using 60 min charts for S/R, I will only daytrade it. And if I do any overnight holding I will base it on daily S/R points. What do you guys think?

ESR - I hope I'm not distracting from your thread by talking about currencies. I know your method is focused on daytrading ES. I'm trying to apply it to markets that are open during the day in europe..

 

[ESResistance]

Hi everyone

Please find attached todays levels The S/R numbers are in the black column, the MP, Pivots, Fibs, Simple Moving Averages and Summary Numbers are for confluence and information.

Always remember to use the numbers as a guideline for potential areas of high probability plays.

Always use a set up based upon your system to enter a trade
.
Good trading all

 

[ESResistance]

With fx well... I base my levels from the 4hr chart and only fine tune with the 1hr. I am looking for price to be slowing and hopefully when my area is hit a very quick reaction in my direction. If price is not responding to the level I exit. I dont wait around for my stop to get hit, if price doesnt want to roll with me I jump out.

FX is more a hobby and I swing trade, I have not spent as much time and effort on mastering it as I have the ES.

Cunparis, Support and Resistance trading can be applied to almost every instrument, so feel free to discuss any instruments you like.

Quote from BlowFish:

Hi ESR,

Do you look for any confirmation or trigger tha the level is holding before triggering your trade? (e.g. you like to see price 'bounce' of it a bit) or do you just place a limit at the line when price is close.

Thanks.

 

[ESResistance]

I swing fx, I use 4hr/daily charts for my levels (1hr only to fine tune).

I day trade the Es and use 1hr charts mainly.

So what you are saying makes total sense.

Quote from cunparis:



In fact I was thinking today that when using 60 min charts for S/R, I will only daytrade it. And if I do any overnight holding I will base it on daily S/R points. What do you guys think?

 

[Steve-O]

What time do you usually send the numbers? Are they posted on the website earlier than when they are sent out? I have seen how they would have assisted me on 4 trades today.

 

[ESResistance]

It varies, I aim for 3-4am EST but if I am in a trade I focus on that. Its been a very nice morning today.

Quote from Steve-O:

What time do you usually send the numbers? Are they posted on the website earlier than when they are sent out? I have seen how they would have assisted me on 4 trades today.