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

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Thanks guys for your opinions regarding line vs. bars/candles as best charting visualization for S/R purpose.
Clear enough your reasoning about spikes role in tracking extreme price areas.
So I would like to submit you a real example...

I enclose yesterday's 2 hours chart of Euro Stoxx 50 future.
How would you handle this case? Which would be your favourite support line, red, yellow or green?!? And why?
Of course, none of this could be your choice, so find out a different one!

I really appreciate your collaboration on this :)
 

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Quote from darkswan:

I enclose yesterday's 2 hours chart of Euro Stoxx 50 future.
How would you handle this case? Which would be your favourite support line, red, yellow or green?!? And why?
Of course, none of this could be your choice, so find out a different one!

I really appreciate your collaboration on this :)
More...

This is cool that you want to trade the stoxx because I'm interested in trading that one too. Are you in Europe? I'm in France. For now I'm practicing with ES because that's what most others are trading. But I've also been practicing with oil & gold & euro.

For me the red line was violated so many times it's not support. But the question because what is support exactly?

The problem is support is always tested. Let's say support is at 830 (like ES). Support will be tested, so let's say a low goes down to 825 but closes above 830. Does that mean support is now 825 since that's where price turned back up? Or is support still 830 since the probe lower to 820 didn't "stick"? I'm struggling with this one, and I'm not sure there is a right answer.

Then in ES let's say it goes down to 816. This was to run stops I imagine. The tick hit -1900 so I'd say lots of stops were hit. So is 816 now support? What about 830?

Back to your example, I'm thinking the yellow line is where the move stopped. At least for 4 hours. Then a new support one the green line. If I had to pick one it'd be green but I think both yellow & green should be good.

I'm curious what others think, because I'm still learning this technique. And I'd love to be able to come up with the numbers myself so that I can trade the stoxx & dax and have a normal 9-5 job instead of trading until 10pm. ;)
 
Yes Cunparis! We're cousins... I'm in Italy.
For the moment I'm just papertrading but I'm very next to start with real money. I've been practicing for around 6 months and my equity line seems to be now in decent grow. Cross fingers... :p

I believe we have many nice opportunities in the Eurex market: the Stoxx is my favourite at the moment because of his size and margins.
CME will be a step further for me. I consider Eurex a good training before adventuring overseas!

Thanks for your opinions on the R/S issue. I'm struggling as you with this concepts and, yes, I agree with you in believeing there is no one optimal solution. As everything in this discipline!

By the way... mind that with Stoxx/Dax and other europen futures you can go on till 10 p.m. the same!! As mini S&P!! Don't even think to relax after 5 p.m.! :D
 
Quote from darkswan:

By the way... mind that with Stoxx/Dax and other europen futures you can go on till 10 p.m. the same!! As mini S&P!! Don't even think to relax after 5 p.m.! :D
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Trading Es until 10 pm is taking its toll on my family life. I trade ES because of the techniques and analysts that I follow also follow the S&P. But I'm hoping to learn to do everything myself and apply it to european markets. The problem is I don't have access to the same breadth information in Europe. I'm not even sure such things exist. For example Bullish Percent Index, McClellan Oscillator, etc. Do you know if they exist for Stoxx/Dax?

so my current idea is to swing trade US futures and to practice daytrading ES until I get better and then do my daytrading with Stoxx/Dax. That way I can do the regular session and at 5pm I can be done and go pick up the kids from school & daycare. Wife is getting a new job so that means I'll be cooking and cleaning. ;)
 
My friend... You don't know how much I understand you... I also have similar family issues... Except cleaning and cooking fortunately! But I have two little kids (3 and 5) and a wife who is not always at home. So you exactly know what kind of requirements have kids nowadays!!

Back to trading... No, honestly I never heard about those indexes for Eurex.
 
hi guys!!

I am reading you both and I agree about the problem for "extra hours" you need to do when based in europe until 10 pm, family life , children care etc... I am in france too.

ok. but I think you can begin trading at around 11 am (europe time) , at this time generally you don't find strong trend but the Esr technique works rather nicely without a great volatility.
after you can stop, imho, at 6 pm,(lunch in US)) .you probably have to be done at this time.
I find the market generally speaking, much more difficult to work after 8 pm, of course there is a huge volatility but you need to adapt your techniques to that, (larger stops, stress etc...) so to sum up, this late period is more for very experienced trader.
Let them earn money, not ours
:D and take care of our family
 
Quote from verdo:

but I think you can begin trading at around 11 am (europe time) , at this time generally you don't find strong trend but the Esr technique works rather nicely without a great volatility.
after you can stop, imho, at 6 pm,(lunch in US)) .you probably have to be done at this time.
I find the market generally speaking, much more difficult to work after 8 pm
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This makes a lot of sense. In the past I had tried to enter positions in the morning and if it was a trend day stay until the end. But ESR's technique is more of a scalping technique and what you say makes sense.

I didn't think much about trading earlier but I agree that it can be done. this morning I'm watching ES and I see price has bounced of 890 three times. Oddly enough 890 wasn't on ESR's list, but I've had it marked as a support area from a couple days ago (before it broke through).

I'm going to be watching more from 11am like you said..
 
Quote from xburbx:

What trades did everyone take today based on ESR's method?
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I didn't do any ESR type scalp trades, but I did use the pivots trying to establish long positions for a long term hold. I was able to enter pretty well with the trend and move my stop up to breakeven but I got stopped out every time. Finally gave up going long and went short to hold over the weekend for next week.
 
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