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I also posted this chart as a response to a question about where to locate S/R. I look, in order of importance, to zones, then levels, then points. It's interesting that price rallied to 1760 overnight. |
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I'm trying to understand a bit better all those lines drawn on your chart, but they are still confusing. I thought I had a reasonable idea to identify support and resistance, but now I'm not so sure anymore. I only trade the ES, but I had a look at the NDX recently because all of your charts are that market and I'd like to understand the concepts better.
So here is my question: if I look at last couple of weeks it seems 1765-1770 is more important. That level was "tested" (hope I'm using the right terms here) twice on the 25th and another time on the 26th where it started to rally big time. Then on the 29th it seemed to find support there, but then fell through.
Then today (just now) we seemed to find resistance around 1765, which coincides with the earlier levels.
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The relevance to RT trading, of course, is that one must first find those areas or levels where traders are most likely to get excited and perhaps prompt a reversal or continuation. Today that area would appear to be 1750/60. |
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That's another question I have. Last couple of days you said something in the line of "today that seems to be...". So this is confusing me, how can you make real time decisions if price is finding support at different levels each time? 1750-1760 is 10 points wide, and although I haven't really a good idea about how wide a stop should be no the NDX, this seems like an awful wide zone to trade from. 5 points on the ES is already wide for my risk threshold
Btw, how do you manage to show those images inline in the post?