S/R candle chart question

Quote from NUTSNEAL:

I find this to be a very critical issue. I trade Emini S&P.

I consider support or resistance to be broken much like a tipping point or point of no return. As an example I often see a support or resistance extreme broken by three or four ticks (which may be stop running) but then the support or resistance holds. It appears to me, but I could be wrong, that a move of about six ticks past support or resistance is generally the tipping point or busting of support or resistance for the emini S&P.

Mark Fisher in the "Logical Trader" uses a tipping point or point of no return in his opening range breakout method. I thought this was a pretty good book also.

Nutsneal

PS

NihabaAshi

I really enjoy and benefit from you posts. Thank you for contributing to this site!
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Helpful points, 6 ticks past S & R is meaningful;
wouldn't consider 1 tick ES anything but noise

And as for the question is it High -Low, or Open -Close???;
say yes, all 4. [Page 4]

Certainly would want to consider daily, weekly Hi-Low;
BUT EVEN a helpful candle for S&R like 60 minutes,
several reasons not to let all of them close, including last full hour never finishes in ES or NYSE, regular hours:cool:

In other words starting at 8;30 central/Chicago time;
ES last full hour never finishes, regular hours.Still , end of day close is important.

And below 50 day moving average, usually consider resistance stronger than support;
first & partial- last week of month can be strong support.
That exception can still exist with the rule of weakness below 50 dma. For example Year to date candlechart;
SPY,ES DIA, YM,
IWM,ER2,QQQQ,NQ
 
this is the spot to watch for consolidation for the next move one way or the other. 11164 either holds for support or it doesn't.
 

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I still have to read the rest of these posts, but the one thing thats been tearing at my mind is this..

Say your stock is trading between 20 and 23.00, and your stop is set for lets say 3.00 a share with a 1-1 risk/reward ratio, and right now your stock is trading at 23.00 dollars. Now say the stock falls by 3.00 to its support level of 20.00.

Do you sell because the stock fell to 3.00 which is your stop, or do you hold because 20.00 is also a support level and has not yet broken support?...

The last couple trades I made were just on impulse. I look at charts and try and see what the stock will do next, but as far as s/r goes, I just cant make sense of it. It just seems too subjective..I wish there was a text book example of "THIS IS HOW YOU FIND S/R"...but everyone has their own little way of doing it, and its frustrating.

- nathan
 
Sounds to me like you want to buy near 20 with a stop just below that, or pass on the trade.

Here is a guy who may be able to help you with this. Just remember this. Support is the place where buying should begin to pick up. If it doesn't then you just have to bail. Same with resistance. It is just a spot where sellling should pick up, but if it doesn't then bail. Trade as close as you can to either. Use long term charts to find "the" important spots where the price action is likely to be affected. Don't ttrade until you get your number. Risk to reward should be 3 to 1 in your favor for each trade. Be picky.

http://www.tic-tac-dough.com/

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID445101
 
50% retrace is a normal spot for the bulls to step up. Have no diea if they will or not. Just watching it. On the flip side, if the rally off this fib level is weak and forms a lower high, then we have a potential HnS setup. Pretty important spot right here imo. Upper parallel in combo with the equal moves measurment and price resistance [from the bulls that got stuck in the double top] stopped the rally from last week.
 

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