Trading in choppy markets.

>I've heard a lot about shorting on resistance and buying on support... but if you do that were would you place your stop?<


ANSWER: 15 cents below your entry.
 
when it gets as choppy as it did in my eyes this afternoon

I need to step back to longer time intervals

5 minute , 10 minute , 30 minute , 60 minute

instead of trying to react to every tick ...

:(
 
Originally posted by SethArb
when it gets as choppy as it did in my eyes this afternoon
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Afternoon choppiness is common, especially during these low volume summer days. I like to be flat by the time lunch comes around. For example, Monday the market was choppy with slight bias to the downside, so I was short when I was in. Well, come lunch there was a spike upwards, very unexpected. I did occur on high volume, but out of the blue. I still don't know what to think of it.
 
I read some place about Money managers buying Resistance and selling support. Are they talking about premature selling of breakouts?
I look to trade more decisive breakouts some times it seems i miss the opportunity because i wait to long . ANy one have any good suggestions on confirmations :confused:
 
Originally posted by BillyG67

I look to trade more decisive breakouts some times it seems i miss the opportunity because i wait to long . ANy one have any good suggestions on confirmations :confused:
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I would watch the tape and look for heavy volume right at the support or resistance level. If you are approaching a resistance level or you already have a small break of the resistance watch the tape to see if there is heavy buying. Just the opposite if you are going the other way. This should be enough to get you into the trade early enough to take profit. Us some type of trailing stop to try a capture most of the move. After the break of S/R the trend could continue for 5 minutes or 5 hours. A trailing stop could land you some good profit.

Just a thought. I really don't use S/R that often so this is just an off hand observation.
 
BillyG67,

Buying resistance and selling support - sounds like some sort of aggressive entry tactic. Buying resistance in an uptrend, selling support in a downtrend. Doing this in anticipation of a breakout or a breakdown you sacrifice clear market direction for a better entry price. See if it works for you if you're curious about it.
 
Forgive my ignorance but...

all I get on my RealTick charts is Total Volume. Is it possible to obtain buying volume and selling volume as separate items?

I currently guess whether it's a buy or a sell by seeing if the price of the trade is closer to the bid or the ask price.

Thanks in advance.
 
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