Support and Resistance

[atto 20]

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 ?

I prefer to think of it as a HUP.. it can do either. Since a lot of stops are placed outside of S/R, you can get a nice pop when broken.

 

S/R projected into the future should be called "possible S/R", because it worked before, may not work now. This is why we pay very close attention to price action near there areas.

[OAC 10]

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

 

[OAC 10]

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.

 

[MC 10]

Thanks OAC...that was what I was wondering...how you kept all those levels marked without blocking the price action. So you run separate screens for levels then have your price action window separate I take it?

 

Thanks for sharing

[DbPhoenix 42]

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

 

I wasn't being flippant. You're talking about more than 30 lines. How do you coordinate all of this to make a trading decision in RT?

[OAC 10]

I wasn't being flippant. You're talking about more than 30 lines. How do you coordinate all of this to make a trading decision in RT?

 

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/

[atto 20]

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/

But still, say you develop a confluence of several lines. How do you trade it? Are you trading the bounce, breakout, or both? How do you manage risk, since the S/R zone might be on the thick side? Do you enter after it already starts to move, or carry a position into it?

[OAC 10]

But still, say you develop a confluence of several lines. How do you trade it? Are you trading the bounce, breakout, or both? How do you manage risk, since the S/R zone might be on the thick side? Do you enter after it already starts to move, or carry a position into it?

 

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.

[DbPhoenix 42]

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/

 

Yes, I understand. But in order to see this confluence, these lines have to be plotted in some fashion. Do you plot all these lines on the same chart? Or do you have multiple charts which must be coordinated in some way to show this confluence? And how is all of that done in RT in order to make the trade decision?

[OAC 10]

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

[MC 10]

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

 

I've done what I term fib mapping, which is just like you describe here. I draw fibs using my technique and as they overlap it creates a grid. Look for open areas in the grid and if you break into the blue sky area it should fly to the next fib based resistance. I stopped using it cause the screen was too cluttered, maybe I will try again and just highlight the levels of "blue skies".

[OAC 10]

Or do you have multiple charts which must be coordinated in some way to show this confluence? And how is all of that done in RT in order to make the trade decision?

 

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.

[OAC 10]

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

 

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

[MC 10]

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

 

Is there a reason you do the pivots on NT rather than Ensign?

You guys got me hooked on Ensign and it's a great value, though I'm still tweaking it for my ideal setup at this stage. It can be overwhelming and I'm trying to make a list of the best hotkey commands. At the risk of a brief thread hijack...any tips on hotkeys?

 

I would like to have pivots (month, week, daily), vwap and my VP levels plot on one single window to look for those clusters. Can Ensign not run the pivots well?

 

Thanks again

Edited July 18, 2008 by MC

[OAC 10]

Its a bird, its a plane, its the flying chimp...

 

anybody got a video for this ?

[kvn 10]

Thanks atto for the post/chart. I always keep a volume histogram on my chart and try to note patterns that occur during good setups and work in the occasional VSA. But not quite proficient at reading it yet, so your post is helpful.

[ztrader 10]

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

 

Indeed, a good way to look at it. It seems the availability of so much technical information and knowledge, impair traders decision making and alter the course of trading their plan. The offensive team has only seconds to view the defensive line formation checking for "probable" open space, the play is called, audible sound off and they run the play. That's how it is in real time trading. Just from my goldeneye bears eyeview.

 

ENJOY!

 

ztrader

[ochie 10]

You have a good thread going here. I’m also a fan of confluence but feel the first S/R should start with price itself. Congestion areas where a high level of trading activity has taken place. VAPs do a good job of spotting these unless the PA created multiple areas of distribution that VAPs may miss. Now, the use of your fibs, pivots, etc. can form confluence with these areas. This may offer some reduction in the number of areas one must focus on. Just a thought

[Bearbull 10]

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

 

Most traders plot S/R levels and construct strategies/tactics to trade from those levels. You obviously have a unique style of trading/flying in the open spaces , very intriguing, perhaps you could illustrate a realtime trade with your methodology. I am sure it would be of immense interest to many who are thinking of soaring with the eagles.

[OAC 10]

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.

[Bearbull 10]

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.

 

 

Looks like you are employing a combination of approaches, the clustering of fib levels (carolyn Boroden, the fibqueen) , CCI ZLR etc from Woodie, Linda Raschke uses ADX readings , momentum moves & shallow retracements,

plus walterw

 

Well if it is working for you consistently, then that is great, next time you take a trade based on this combination, would appreciate if you could post it here.

[OAC 10]

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.

Edited July 19, 2008 by OAC

[OAC 10]

Some free articles by Joe Ross are in this link:

 

http://www.trading-naked.com/Articles_and_Reprints.htm

[Bearbull 10]

Thanks for the link OAC , yes I used to read NQoos website some years back now, he certainly is an altruistic guy, making so much invaluable info. available for general trading public, believe his favourite setups are with the application of Andrew Pitchforks.

Also know about Joe Ross, wrote Trading by the Minute, You could start a thread on his methodology, perhaps he could come in and post comments.

[OAC 10]

yes I used to read NQoos website some years back now, he certainly is an altruistic guy, making so much invaluable info. available for general trading public, believe his favourite setups are with the application of Andrew Pitchforks.

 

Yes, I use quite a bit of Andrews myself. But earlier in this thread, they were harassing me about using lines that are not horizontal. :hmpf: