[ym] Support and Resistance in Volatile Market

[ryounkin 10]

I usually use pivots for s&r but in such a volatile market, they seem meaningless. Today we have had a 400 pt range. Yesterday was a 631 pt range and today's R1 is 240 points higher than the pivot. Not terribly useful.

 

What s&r levels do you find useful?

 

Buck

[brownsfan019 17]

Buck,

That is the inherent issue with pivots - when you have big moves, those things can get pretty wide as you've seen. Likewise, when there is a tight range day, you find the pivots very close together as well.

 

My suggestion is to either accept what they are or look at something else. What that something else is, that is up to you. DB's area is a good place to start and has some good stuff there. My thread about the 20 EMA has some ideas in there as well.

 

Good luck!

[minoo 11]

Buck

 

Here is my Area chart of Support and Resistance

Today there were many so I will consider confluences only

The first one came just after open at the confluence of Weekly & Daily R1 Pivot

It turn around and passed through everything in path till it filled the gap (confluence of yesterdays close & globex-only low)

Formed todays low a tick or two below and moved away with momentum, classic play with my Fib89 line (Thick Orange)

Note the orange line its equivalent to 200MA, I play its confluence with other areas (refer to Steve46 thread for struggling traders)

 

I also mark the unfilled gaps as areas of target, once filled than as S&R

Normally midpoint pivots (dashed lines) are scalping targets for me

Swing plays are from confluence of Areas & 200MA (Globex High / Low, Yesterdays Hi /Lo, Gap fill, etc)

 

The white and magenta dots are Fib measured alternates, they are like the previous foot steps (in size /points) of the market, helps in getting from one area to other

 

Hope this helps

 

Good luck man,

Minoo

Edited October 30, 2008 by minoo