New Frontiers in Technical Analysis

[mitsubishi]

If i had to dump everything i know so far about the market and use just one technique to trade with, i would trade support and resistance using a simple horizontal line.A bit of patience,discipline and money management..probably all you need.As to what else i am using in conjunction with this model to try to develope it into it's full potential,i think i will continue in the coming days by posting stuff in realtime during market hours.

[mitsubishi]

Projections from todays open..

I just had a quick scalp at 906.5 which is R-10 from the open (896.3) with a line projected there at 10am but i got out quick when i realised the market had been above 907 already.But i wanted to show how i might use the projections.Futures were mixed overnight so we need to see a direction established today before looking for a trade.And now i see we are already at 908,so that was good i got out quick.We also have a line running to resistance(912) at 12.30 which is a possible reversal zone

[mitsubishi]

So let's say that at 12.30,a known reversal zone,with a line running there,we are at 912.I would go short there if we had not already been higher.At that point i don't know if that is the high today but i will project a line from there (down) assuming it is.I would then manage the trade normally.I will only know the high at the end of the day.If we had already been higher than 912 before 12.30,i would not short there.
Looking at the outstanding projections we have lines running to 915/6 at 2.30pm-another reversal zone and another possible short OR a target area if you are already long.Also 916 is another R-10 price from 896.3 open today. So, you have a projected line to a reversal zone at a price that means something.Don't forget you have the recent high 956 down thru 46 36 26 etc and when you look at charts these have been meaningful.
So as the day progresses,projected lines can be eliminated and some,because of the wide divergence to unlikely areas,were never in the running.Really we only need one or 2 good trades and we don't need to know everything to do that.
When the session is finished the ohlc can be connected with the angles and new projected lines can thrown forward into the next trading day(s) ready for consideration.

[mitsubishi]

Another thing i try to factor in is the recent daily range.On a day like this,with overnight futures mixed and the opening range established,i am trying to figure out which way the rest of the points in the average range are going to come- long or short? adv/dec issues or vol has not really shown it's hand and could get stronger or weaker.If we hit 916 that would be a bigger trading range than yesterday.whereas 912 would be about the same...

[mitsubishi]

912 has been taken out around 11.30 so next target is 916.If that gets taken out there is a projected line for higher prices this afternoon running from mon close,and another line that connects tue/weds highs.In that case i would look for a R-10 trade from this weeks low-888.8 so around 918/9.Always hoping to get a meaningful price at a known reversal zone with a projected line there.

[mitsubishi]

I am short at 918 the line is a little out but this is a swing trade

[mitsubishi]

My trade was not in profit very long so i scratched it and i have a better entry here- could keep going up but still aiming for a swing trade..

[mitsubishi]

Just closed half the position at the 2.30 zone in case we reverse and head higher towards the close.Then i would scale in some more short later if that happens.(that was short 921- 916.7)

[mitsubishi]

Managed to nail the high today.Here's how it ended up....

[mitsubishi]

The high was R-10 from prev close, just about.. Interesting that the high and close were very close at 821.4 and 820.2,but 2 different projected lines picked them out