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Jeremytang

TAs for Support and Resistance

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I'm currently trying to figure out a way to idenitfy short term intraday s/r using a mechanical (computational method)... So far I've noticed that sometimes EMAs of the highs and lows can act as s/r for certain instruments.

 

I'm curious is there anyone else out there using any TAs to derive S/A levels?

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There is no method more effective for locating intra day ( or longer time frame) zones of support and resistance then using previous areas of high volume to frame value zones.

 

Interesting... Do you look at volume on the same timeframe, or do you like to zoom out to a longer timeframe? Ie: daily chart

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There is no method more effective for locating intra day ( or longer time frame) zones of support and resistance then using previous areas of high volume to frame value zones.

 

Now that is what I call a bold statement.

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Now that is what I call a bold statement.

 

And in such certainty and boldness lie the reasons why one will always have opportunities in the markets.

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And in such certainty and boldness lie the reasons why one will always have opportunities in the markets.

 

I agree with your statement but probably not in the manner you suggested sir.

 

Boldness...maybe, but born out of experience. Certainty of my edge...yes, absolutely! How can a speculator comfortably accept risk without a sense of certainty that his methodology serves him well by putting probability in his favor? We all have access to the same market generated information but it's how we chose to organize, present, and read that information that provides an edge. Personally I trade in a non-predictive fashion. My goal as a trader is to understand the underlying processes and dynamics that drive the market in the present rather then predicting where price will go in the future. If my understanding of the current price action or certainty of my edge is lacking then I don't conduct business in the market.

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Interesting... Do you look at volume on the same timeframe, or do you like to zoom out to a longer timeframe? Ie: daily chart

 

I look at volume based support and resistance mainly on 2 time frames. One is short, on an intra day basis. The other is longer...over a span of multiple days or weeks depending on where value has formed.

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I look at volume based support and resistance mainly on 2 time frames. One is short, on an intra day basis. The other is longer...over a span of multiple days or weeks depending on where value has formed.

 

I agree that volume based Support and Resistance is the most accurate way to read those levels. I will add that each specific chart has its own unique Support and Resistance levels and when those levels match on shorter and longer time frames, those are the most critical levels.

 

If you utilize Divergence/Convergence using those support and Resistance levels too, those oscillation tops and bottoms will be stronger as well using volume based levels.

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The horizontal lines in the screenshot below represent the Open, High and Low from the current session as well as the session highs and lows from the previous 4 days.

 

The logic is that a session extreme is where the price action ran into enough opposing activity to create and hold that extreme price for at least the rest of that session and what could be a better definition of S/R?

 

The larger red and blue dots are today's extremes and the smaller red and blue dots are highs and lows from the previous 4 days.

 

In the ES and especially over the last few weeks when there has been so much overlapping price action, it is amazing how often price will pause, be supported by or reverse at these lines.

 

tpt457.jpg

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Urma, what is the histogram indicator and would you mind sharing the settings?

 

The horizontal lines in the screenshot below represent the Open, High and Low from the current session as well as the session highs and lows from the previous 4 days.

 

The logic is that a session extreme is where the price action ran into enough opposing activity to create and hold that extreme price for at least the rest of that session and what could be a better definition of S/R?

 

The larger red and blue dots are today's extremes and the smaller red and blue dots are highs and lows from the previous 4 days.

 

In the ES and especially over the last few weeks when there has been so much overlapping price action, it is amazing how often price will pause, be supported by or reverse at these lines.

 

tpt457.jpg

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Urma, what is the histogram indicator and would you mind sharing the settings?

 

That indicator is part of a package we use to calculate and trade Order Flow and The Balance of Trade as discussed in this post here on TL.

 

In that post the indicator is described as:

 

V94 Window

 

 

v941.jpg

 

 

!TPS.V94Window is an indicator designed to report a moving window of net buying and selling volumes – a moving window of the balance of trade.

 

The small dots are the raw values smoothed by DX2MA. They are in a channel.

 

The large fat +’s show extreme levels of buying or selling. In some cases they can signal exhaustion and warn of a reversal as is the case with the selling in the chart above.

 

In other cases they can signal extreme activity and the likelihood of continuation as with the buying in the chart above.

 

 

cheers

 

UrmaBlume

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Supply & Demand never seem to fail...If you think about it...when do you buy something? When the price is high, or when the price is low (in your opinion)? and when you do sell something...when the price is low, or when you can get a good profit for it? I think the answer is clear to most of us...and the financial markets are no different..

 

On any chart you will see price trend up until it reaches a point where NO ONE is willing to buy and at that point you will see a "wick" (if you are using candles)....THAT is where there are no more buyers (at least for the moment)...Ironically popular literature suggests that these boundaries are at areas where there is a lot volume...the truth of matter is that supply and demand change at places where there is virtually NO VOLUME....It is a that "tipping point" where buyers or sellers decide to take a position that you want to be ready to act.....and it is right in front of you on any chart IF you simply take a moment to look at it

 

Quite a few examples in my threads

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I was curious on how the indicator tracked price but your second screen shot answered that question.

Thanks for the answer and the explanation.

Is the indicator openly available for testing?

 

Logic

 

 

That indicator is part of a package we use to calculate and trade Order Flow and The Balance of Trade as discussed in this post here on TL.

 

In that post the indicator is described as:

 

V94 Window

 

 

v941.jpg

 

 

!TPS.V94Window is an indicator designed to report a moving window of net buying and selling volumes – a moving window of the balance of trade.

 

The small dots are the raw values smoothed by DX2MA. They are in a channel.

 

The large fat +’s show extreme levels of buying or selling. In some cases they can signal exhaustion and warn of a reversal as is the case with the selling in the chart above.

 

In other cases they can signal extreme activity and the likelihood of continuation as with the buying in the chart above.

 

 

cheers

 

UrmaBlume

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I'm currently trying to figure out a way to idenitfy short term intraday s/r using a mechanical (computational method)... So far I've noticed that sometimes EMAs of the highs and lows can act as s/r for certain instruments.

 

I'm curious is there anyone else out there using any TAs to derive S/A levels?

 

Try putting a 100 EMA on a 1 minute, all sessions chart. Best dynamic support and resistance level I've found. Works great intraday on most futures instruments, especially those that move such as DX, 6E, GC, CL, and TF, as well as some popular stocks, DE, GS, etc. I add Bollinger Bands with 2 std. dev. from the 100 EMA and it gives me a great road map for likely price action. Works best on trending days. Also, same settings work great on the 1 hour time frame.

 

2011-05-24_CL.png

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Try putting a 100 EMA on a 1 minute, all sessions chart. Best dynamic support and resistance level I've found. Works great intraday on most futures instruments, especially those that move such as DX, 6E, GC, CL, and TF, as well as some popular stocks, DE, GS, etc...............

 

Prices do not support, provide resistance or propel price. Buying and selling, the order flow, the balance of trade provides support, resistance and the motivation to price.

 

Price is no more, no less and is exactly the response to buying and selling, i.e., order flow.

 

v941.jpg

Edited by UrmaBlume

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Prices do not support, provide resistance or propel price. Buying and selling, the order flow, the balance of trade provides support, resistance and the motivation to price.

 

Price is no more, no less and is exactly the response to buying and selling, i.e., order flow.

 

v941.jpg

 

10-4. Thanks UrmaBlue. Sorry to offer any constructive answers. Sorry to interfere as I'm sure you and your "team" are pulling millions out of the market everyday. Keep it up Chief. Good luck.

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How do you do that? What time frames, what charts, ? Im a novice,can you explain it to me ? Thank You. Happy Holidays.

 

The chart is a volume bar chart of ES with 8000 contract bars. The top chart contains standard TradeStation Pivots, dots of smoothed price and some special reference dots. The subgraph displays a histogram of a moving window of the balance of trade.The platform is TradeStation.

 

UrmaBlume

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Here is a chart from this morning's trade in ES.

 

Divergences between price and the buying and selling forces that propels price can often indicate change.

 

In the middle of the chart below you can see that as price (top window) makes a Lower Low, both the indicator of net trade and the indicator of the moving window of the balance of trade made Higher Lows which is referenced as a Double Positive Divergence.

 

 

Please click to enlarge image

tpt665.jpg

 

 

UrmaBlume

Edited by UrmaBlume

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