ES Trade Trend

[goodoboy 10]

So far, I am doing fair on the ES trading compared to where I was about 4 months ago.

 

I mainly use technical analysis to trade the ES.

 

Lets say the es is moving downward since the open bell and come to key area of support, for instance a pivot. If I want go short at this pivot, is there any price action or method i can use to determine to take the trade short or not? Rather than just going short at that support, because the minor trend is down for the day. Vice versa for if I want to go long on a day when trend is up, and price action comes to a resistance.

 

Thank you

[wrbtrader 10]

So far, I am doing fair on the ES trading compared to where I was about 4 months ago.

 

I mainly use technical analysis to trade the ES.

 

Lets say the es is moving downward since the open bell and come to key area of support, for instance a pivot. If I want go short at this pivot, is there any price action or method i can use to determine to take the trade short or not? Rather than just going short at that support, because the minor trend is down for the day. Vice versa for if I want to go long on a day when trend is up, and price action comes to a resistance.

 

Thank you

 

Hi,

 

There are many trade signal strategies discussed here at Traderslaboratory. You've been here since March 2012...have you been experimenting with the methods discussed here to see if they work with your perspective of what is support/resistance. ???

[TheNegotiator 13]

So far, I am doing fair on the ES trading compared to where I was about 4 months ago.

 

I mainly use technical analysis to trade the ES.

 

Lets say the es is moving downward since the open bell and come to key area of support, for instance a pivot. If I want go short at this pivot, is there any price action or method i can use to determine to take the trade short or not? Rather than just going short at that support, because the minor trend is down for the day. Vice versa for if I want to go long on a day when trend is up, and price action comes to a resistance.

 

Thank you

 

Well, it would be my preference if it's selling towards support or buying into resistance, to not take a trade until 1- I'd seen that the reaction at the level was not strong and 2- there was a decent enough pullback to get me into a trade. You could of course wait for it to penetrate the level and hope for a quick retest to give you an entry.

 

But anyway, not that I'm say it's the wrong thing to do but if you are trying to trend trade might not one of the other indices be better to look at over ES?

[goodoboy 10]

Thank you all,

 

Will look more into candlesticks to determine what I am looking for. Thanks

[joshdance 10]

Lets say the es is moving downward since the open bell and come to key area of support, for instance a pivot. If I want go short at this pivot, is there any price action or method i can use to determine to take the trade short or not? Rather than just going short at that support, because the minor trend is down for the day. Vice versa for if I want to go long on a day when trend is up, and price action comes to a resistance.

 

A pivot (if you mean a floor pivot calculated by (H+L+C)/3) is not a "key area of support." But let's say there is actual established support below. You have a few options:

 

* If you want to be short, you should already be short well before the support. Have you ever played tennis? The area between the back service line and the baseline is sometimes called "no man's land." If you area around the baseline, you'll be able to return the shot off of a bounce. If you area between the service line and the net (inside the service court area) you will be able to return the shot as a volley. However, get in between there, and the ball will be coming right to your toes, too close for a shot off a bounce, and too far for a volley. Think of selling into support as "no man's land." It works sometimes, but more often than not, buyers will at least try to push it back up. You will often be caught with a short position a point or two above the low, and your stop of 2 to 3 points will be an easy target as they push it up about 4 points off the low. Sell far enough in advance of support, or sell when the support has been clearly violated, but not in between. That's just a general idea, and there are always exceptions.

 

* If you are not already short and want to be, a good option is to just wait to see how the market responds at the low. Maybe there is a bounce off the low, and if it's weak, then you can sell it.

 

* If the support is convincingly broken, and maybe even retested, it can be a good selling opportunity.

 

* Have you considered that often the market searches for boundaries after the opening bell? It could be that the market intends to buy, but it must search just a bit lower for buyers. A 15 minute move down at the open does not mean you should always be looking to sell. Perhaps you should be buying support instead?

 

All of these are just ideas. They are generalized and meant to be. Ask yourself, "what is the intention of the market?" Not "which way is the market going?" It most always needs to move down, if it really wants to be up, and vice versa.

[joshdance 10]

Will look more into candlesticks to determine what I am looking for. Thanks

 

It will likely not help your cause, but feel free to give it a look to explore your options personally.

[goodoboy 10]

A pivot (if you mean a floor pivot calculated by (H+L+C)/3) is not a "key area of support." But let's say there is actual established support below. You have a few options:

 

* If you want to be short, you should already be short well before the support. Have you ever played tennis? The area between the back service line and the baseline is sometimes called "no man's land." If you area around the baseline, you'll be able to return the shot off of a bounce. If you area between the service line and the net (inside the service court area) you will be able to return the shot as a volley. However, get in between there, and the ball will be coming right to your toes, too close for a shot off a bounce, and too far for a volley. Think of selling into support as "no man's land." It works sometimes, but more often than not, buyers will at least try to push it back up. You will often be caught with a short position a point or two above the low, and your stop of 2 to 3 points will be an easy target as they push it up about 4 points off the low. Sell far enough in advance of support, or sell when the support has been clearly violated, but not in between. That's just a general idea, and there are always exceptions.

 

* If you are not already short and want to be, a good option is to just wait to see how the market responds at the low. Maybe there is a bounce off the low, and if it's weak, then you can sell it.

 

* If the support is convincingly broken, and maybe even retested, it can be a good selling opportunity.

 

* Have you considered that often the market searches for boundaries after the opening bell? It could be that the market intends to buy, but it must search just a bit lower for buyers. A 15 minute move down at the open does not mean you should always be looking to sell. Perhaps you should be buying support instead?

 

All of these are just ideas. They are generalized and meant to be. Ask yourself, "what is the intention of the market?" Not "which way is the market going?" It most always needs to move down, if it really wants to be up, and vice versa.

 

Thank you and what you say make sense.

[BlueHorseshoe 10]

So far, I am doing fair on the ES trading compared to where I was about 4 months ago.

 

I mainly use technical analysis to trade the ES.

 

Lets say the es is moving downward since the open bell and come to key area of support, for instance a pivot. If I want go short at this pivot, is there any price action or method i can use to determine to take the trade short or not? Rather than just going short at that support, because the minor trend is down for the day. Vice versa for if I want to go long on a day when trend is up, and price action comes to a resistance.

 

Thank you

 

I have spent a lot of time backtesting with price behaviour around daily pivots and have been unable to find any kind of edge with them whatsoever. This doesn't mean that there isn't one, of course - I could have missed something that others are aware of. But I can certainly say with confidence that I wouldn't place any kind of emphasis on pivot levels.

 

I hope that's helpful to you.

 

BlueHorseshoe