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

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From ESR on page 129.

"Now with regards to the dynamic S/R using the BB midline, we are looking for a strong trend to begin with, we want price to be making extremes on the outer BB and then revert back towards the midline where we see a $tick extreme we try to find entry around the midline to continue up with the trend. It works even better when the midline coincides with a S/R level."

Quote from hank1933:

This thread that was started by ESR is great. I was away and recently came to catch up on this thread. Can someone explain to me what you mean by "dynamic" s/r. I must of missed the discussion on this. Second, I noticed that some of the charts that was posted here is on the ninja trader charts. I am thinking about going with them in the begining of the new year. I am planning on Nt/Zen with Mirus. I only trade futures, intra only and I do not use any indicators. If any of you traders are currently or have used it in the past, I would really appreciate any comments on the NT/ZEn and the broker Mirus.
Thank u
Hen
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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
 

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Quote from 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
More...



Hmmm... interesting "levels" was mentioned on that table. Just for a pure interest.. i`ve scanned yestedays ES trade chart... seems so only 2 so-called "levels" out of 16 was the point where the price moves had at least a little stop. But other 14 "levels" was rushed through by a single candle in 30 seconds....


I guess you sould re-make "Always remember to use the numbers as a guideline for potential areas of high probability plays." onto something like "From these random levels you might try to guess where the price will go and maybe you will be lucky".


Im not trying to be rude, but... hell... im frustrated what does people really find in that "cute numbers game"? And why so many people still trully believe what that "try to guess" game have at least anything common with the word "trade" ?

:D :D


But, ofcause all these imaginary intraday levels is quite felpfull for a big players, sinse they know where the crowd of PA followers (retail traders) put their stop-orders.

There is only a few REAL things on the market:

- a huuge crowd of retail traders with mini accounts (which mostly try to guess/predict/outsmart the market.

- a quite little teams with huge accounts. (which rules the market and who is open most of their position by rushin retail`s stop-losses).

- and 2 market trends. Microtrend and Macrotrend.

End of story.

And i feel really sad about newbies people which only beggins to trade, and suddently find such a thread on some forum... after which they just fullfil that "PA guess team". :p


PS:
"just follow the trend = follow the money =going with the flow = barking with the big dogs."(c)Quite well-known person in trading


EDIT:

And yet one more thing.

A lot of forums, chats and trading rooms is filled with qustions "where the market does today?"

Look at all these "botom finders" and "ES on 1000 or 700 first?" polls.

So, you must realize one single truth. If you are a real intraday trader... the ONLY correct answers to such polls and questions is "I dont care!".

For example, ES is tradin now at 819. And i absolutely dont care whenever it will crush to 700 in 5 hours or will rally right onto multi-year-highs in 2 days.

Either it will sank or go higher.. i`ll BE with the crowd.. but yet again, i dont care in what exact direction will that crowd decide to go today.

I DONT CARE. Follow the trend, exit that useless "lets try to guess where the PA (market) will go, and where can it stops" game.
 
He's mentioned several times that S/R levels dont hold as well on trending days. He prefers Dynamic S/R on those days in which case he is going with the trend.
 
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
 

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Hi Imba

Thanks for your message. Using the example of an extraordinary mega trending day on which the dow had almost 700 points wiped off its value, you described how levels were "rushed" through. I wouldnt expect much else to happen on such days.:D

You have indirectly raised a very important point which I have mentioned on many occasions. The importance of evolution in your trading. Now if you get up a daily chart and look at the size of the daily candles you will see that we have been having a lot of mega trending days over the last couple of months. In the past at most it was 15% of trading days. Now it seems to be the majority! As a result of this the number of trend trades using Dynamic S/R (the 20MA on the 1 min chart) and breakout trades I have been taking have increased dramatically.

No one set up or style of trading can tame the market indefinetly, and successful traders have to have that understanding. Being able to adapt to your environment is a very important part of reducing your risk.

You are a trading marine going into unknown territory everyday, you have a basic plan but ultimately you have to be willing to adapt to and overcome to the environment that is presented. In this environment the adaptation is to take more trend trades. For a counter trend trader thats a bitter pill to swallow, but to stay on top of your game it has to be done.
 
prof - great trade. lots of points there. I just took one at 840.75 with an intraday level that formed. It was a bit risky because the level just formed on the prior hour close but I saw the run up to the level and then price slowed. I believe this is what ESR was talking about. It was against the overall trend so I got out with about 3.25pnts profit even though my target is 5.25 to keep my ratio to 1:2. I was concerned it was going to turn.

I wonder if anyone would be interested in a live chat room during the day. I could set one up.
 

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