OAC

Some free articles by Joe Ross are in this link: http://www.trading-naked.com/Articles_and_Reprints.htm

Or you can use Joe Ross's Ross Hook. He has some nice stuff, but I don't remember them being discussed on this forum. But Joe does pop in here once in a while. Second thought, if any of you guys have an interest and please let me know, I will open a new thread about Joe Ross's material. If I remember correctly, he is a third generation commodities trader, both his father and grandfather were commodities traders. Today we don't have a stockmarket any more, everything trades like what Soybeans used to trade like. You guys should be big fans because it is all about price action.

The idea is to trade thrust move with a lot of momentum and once identified, then you can enter from shallow pullback. You can use ADX > 30 or CCI(50)>100 to identify this type of environment. And if you read some of Walterw's threads, he uses Keltner channell and VMAR bands.

Its a bird, its a plane, its the flying chimp... anybody got a video for this ?

The Chimp will soar like a flying eagle !!!!

As you can see the two charts I posted previously for pivots and VWAPs, the current trading price or usually known as last price is always highlighted in white, I just quickly eyeball the charts once in while to see if we are close to any levels.

Another application of all these horizontal lines is not to worry about how to trade the S&R, but simply look for open space where there are no lines or obstructions. Hey, i think Walterw may want to hear this one

It all depends on how you see the big picture and how you trade it would depend on how it fits into your overall picture, whether you see the confluence area as being a pause before a continuation of a larger trend or an possible reversal of an existing trend, or just building a new value area. I don't normally seek out a confluence area and the device a strategy to trade it. I do a lot of Fib and market geometry work, you were an elliott wave person so you know. I basically using them to provide supporting evidence like I said before. As from my previous post, you probably can tell I am not restrainted by just horizontal levels. either.

I don't know if you missed the part when I said advanced S&R has to do with CONFLUENCE of multiple techniques and multiple timeframes. There may be 30 lines, but you are lucky to find just one or two real solid confluence in a single day/

Here is a screenshot of all the VWAPs in Ensign: White Line= Daily Blue Line= Weekly Red Line = Monthly As you probably can tell, I try to keep things simple I will definitely not clutter up the screen I am trading from.

A screenshot of the pivot indicator for Ninjatrader that calculates all the daily, weekly and monthly and their midpoints if you like

In Support & Resistance 101 , they always compare S&R with floor and ceiling. So a very strong S&R shouldn't break that easily, no ?

All kidding aside, you don't know how many times I have seen some of these levels come together and stopped the market dead in its track.

It is easy. You just concentrate on your favorite techniques. The rest just provide supporting evidence.:o

To get back to your original question about advanced SR, which I don't think has been given sufficient coverage yet. The advanced SR is finding confluence area with multiple techniques and multiple timeframes. I suggest that you have a couple pieces of good software like TradeStation, Ninjatrader, Ensign. Every morming I have these automatically calculated for me: YPOC, YVAL , YVAH, YH, YL,Globex POC, Virgin POCs, Hourly POC, Dailly Pivots(pp,s1,s2,r1,r2), weekly pivots, monthly pivots, Daily VWAP, weekly VWAP, monthly VWAP, then you run Fibonacci studies on multiple time frame, retracements, extension, expansion , and 1:1 measured move. The last step would be looking for Swing points on multiple time frame. As you know we always assign higher weight to the higher timeframe S/R. I think that is plenty for horizontal levels.

Atto: Thanks for your contribution. I am interested to know what did you exactly see to make you say that the first sign of buying interest occurred at the long-term support ? Is it the WRB or the long green candle ? Or something else ? If I were to buy around ©, I think a momentum Indicator would come in handy here. Personally I would be looking for CCI 50 to cross above zero. If I missed that entry, with CCI 50 above +100, it is very common you will see a GB100 with the CCI 14. With an even higher momentum condition, I may look for a ZLR with CCI 14.( Thanks Walter) It may sound complicated, but doing it this way allows one to limit the risk to a couple of ticks. As you mentioned earlier without the benefit of hindsight, we really don't know this could have developed into a thrust move. So personally I am not that comfortable risking 2 ES points.

I remember a Merrill Lynch housing analyst recently said the bottom of the housing market is probably still three years away.

I think I am beginning to get it. You may have a more sophisticated approach. But I think for the average S&R trader, it is more like reading the tape, it is hard to explain on paper. I do it myself at times. Especially when the market is trying to break through a critcal resistance lets say with several attempts that failed and the action is fast and furious. Let say on the 4th attempt, I would enter at the break out level depending on price action, I only give it 10 to 20 seconds to go my way or I will scratch the trade. If the market manages to break through, it is probably shooting for the moon. But I mange to keep my risk small.

But how often do you see a trendline gets broken and price goes back to retest the trendline before the prices finally break down into a new trend ? I think plenty. I am trying to understand how the pure S/R trader think ? Can you give some actual examples of entry techniques of buying support and selling resistance? Do you use a momemtum indicator like walterw does ? And how do you get around the fact that smart money like to play games at these horizontal levels (Floor trader's pivots,s1, s2, r1, r2, yesterday's POC., VAH, VAL ...etc)because they know many traders are following them ?

I don't quite understand the logic why the levels have to be horizontal only? In your chart attachment, I actually see a horizontal trendline that has been tested twice, hesitated, broken through, and came back for the retest. It is been my experience that the same principle should hold for trendlines at an angle but you choose to ignore. I am kinda lost here ?

Well, this is the real wonder here. Unlike medical or law school, you know when you will graduate in certain amount of years. The real wonder in trading is that you don't know when you will graduate. My question to all of you is how do you keep the faith and keep on running when you don't know how far you are from the finish line ?

Ammo: You are obviousely a very modest individual. The comment was meant to be an endorsement. It is obvious to me that you do use floor trader's market profile lingo. First let us get some facts straight : (1) Peter Steidlmayer invented MP, but Market Profile is OWNED by an Exchange, in this case the CBOT. (2) Floor Traders are members of the exchange and probably the first ones to try out market profile. (3) Foor Traders are known for their vulgar languages with occasional sexist overtone. So ammo, when you speak, I believe you are speaking from the source. Whereas Btfox named a whole list of individuals, with the exception of John Dalton who authored two books, the rest are just vendors. One thing that I hate is getting caught up in a vendor's hype.

Since when did Frank Butera and Trevor Hardnett become legends of MP ? While you are at it, may be you should add our outstanding member AMMO to the list. Have you read some of his posts here ?

No, it is the same tool as Fib Retracement, except the levels are greater 100%.

I think an account size of $1 million plus is meaningless. He could have been successful in another line of business or profession which as we all know does not translate into success in trading ! Or he could have simply obtained it through inheritance or illegal means. The best way to find a mentor is through relatives and friend of the family, but most of us are not that lucky. The next best way is to work as an assistant to a top trader and don't mind getting coffee for everyone in the morning. I think you ae just throwing your money away if you go for someone that advertise themselves as mentors. That is just my opinion.