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FWIW, maybe this will help clarify.
This is what I do for Support and Resistance. I do the same thing on the daily and weekly charts. I update them every night, and keep the hourly on the screen all the time. It is part of VSA. Tom Williams in his book, the Undeclared Secrets, says us day traders would be well served by paying attention to the daily and weekly charts. Can you see the structure of the market and how the prior resistance at the 1336.50 area has become support and has acted like a magnant for this market today? I don't know if we will actually touch it, since volitility has dropped so low, but we are within a point or so of it. When you start to frame out the market like this, you will begin to see how much we trade around the daily highs and lows, and how the hourly and even weekly S & R become so important.
Eiger |
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Eiger, thanks so much for posting that info on S/R. I have been working on coming up with a method of just trading
VSA/PV when it comes into a "relevant" area of S/R. If you don't mind sharing do you place more weight on high and lows for a given time frame or the number of times an area has hit a certain area. For example, past price action could take out a trading zone by a few ticks and then fall back into the previous zone. Would you place more weight on that new high or the zone with many hits? Hopefully, my question makes sense. I would post a chart, but I am on relative's computer for a few days.
