Trading Levels

60 min chart crude snapshot. Crude reached the 102.5 level between 11 - noon yesterday and sat there for next 15 hours or so before falling thru.

I think we re-test that area. How soon depends on news and what happens with the US dollar today / next week.
 

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60 min chart of Nat Gas this week bouncing off the level discussed several times earlier this week.

I will post some more charts and what I look at this weekend for those that are interested. Happy Trading.
 

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I am attaching a screenshot of what I would (with my limited understanding) call a decision point on the ES 60 minute chart.

The 86.50 level seemed to hold throughout the Globex session, until the jobs numbers came out at 8:30. Should we expect ES to return to that level sometime today??
 

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Quote from Frank Furter:

I have written hundreds if not thousands of useless indicators, backtesting apps, and custom charting apps before stepping back and realizing a simple approach is the most powerful approach. Einstein had it right when he said "Everything should be made as simple as possible, but not one bit simpler."
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Well said, sure we have all been through that stage or approaching that stage. Some call this trading naked. 'Levels' as you say are the heart of what I do...partially.

Sensing some confusion about levels (maybe just on my part), decision points, support/resistance - can you clarify your naming convention? I use old highs, lows, gaps (not so much), clusters on weekly, consolidation, and how price behaved at the levels.
 
Here is a 60 min chart of ES this week. These are what I have.

The good thing about using levels is it forces you to be patient, waiting for price to move to a level / area and then watching the reaction.

If your wrong, which will happen more often than any of us would like, you know pretty quickly without having to sit thru a large drawdown to convince yourself you are wrong. More on that later ... here is the chart.
 

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The distnace crude has fallen in one day has really been amazing. I would have said the odds of even approaching the 95.70 area all in one day would have been slim.
 

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Follow up to the ES chart posted Friday around mid-day.

ES fell to the next level to the tick right around market close. So this level will be the level I am watching Monday to see what the reaction is.
 

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My 2 cents on Oil ... interesting position between two key levels as I see it. Don't really have an interest until we test one or the other.
 

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It's good to see someone on these forums who understands how markets work. It's obvious to me that you are familiar with the fundamental principles of trading. As you have stated, this game is all about correctly identifying these levels and then analysing how market participants react when they are reached.

It's as simple and as difficult as that.

I've always loved trading WTI Crude but it has been an absolute joy recently. The volatility at the end of last week was a dream. The reaction to a test of 99.50 should indicate whether there is further downside to be exploited or whether this plunge has run out of steam.

Let's see what next week brings...
 
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