Real Time Price Action- Clue to Puzzle?

[erierambler]

	Quote:	zeon
	I'm seeing price go through that level as if nothing is there, about 5 times in last two days. I agree the "sideways volume" there is noteably higher than elsewhere, but that's about it... See my chart, the pink line is where you and dbphoenix have resistance, the blue lines is where I would mark them. That, and the bigcharts volume by price chart. The only thing that strikes me is that 1340 happens to be the middle of yesterday's action. But why would a calculated point provide s/r anymore than for example pivot points or fibonacci levels for that matter?

For one thing you need data for the ES, not bigcharts data. It's not price going through those levels it's the volume traded at price at the end of day one looks at. To see where the most volume occurred. If looking above existing price then where does all that volume start? Right now the chunk of volume starts at 1340, that's where possibly one would start to see resistance , if any If not, then it's not resistance. It's not 1340 is the middle of yesterday's action , I only look at volume traded at price. Regarding pivots and fib's, I won't even go there........
erie

[zeon]

	Quote:	erierambler
	For one thing you need data for the ES, not bigcharts data. It's not price going through those levels it's the volume traded at price at the end of day one looks at. To see where the most volume occurred. If looking above existing price then where does all that volume start? Right now the chunk of volume starts at 1340, that's where possibly one would start to see resistance , if any If not, then it's not resistance. It's not 1340 is the middle of yesterday's action , I only look at volume traded at price. Regarding pivots and fib's, I won't even go there........ erie

Ok, point taken. I didn't realize you only looked at volume by price, and not the "normal" volume...

My point about pivots and fibs was that I don't believe they could provide resistance. Sorry if I didn't quite make that clear.

I tend to look at swing points primarily. Like yesterday price tried to go higher but failed twice at a level where it had already failed before (1347-1349). The other place are the lows, around 1332-1335, as price first made a potential selling climax there and later reversed of there again (but not very far) it would be my guess that these levels are important. Perhaps I've completely misunderstood the concept of support and resistance, but that's what I used to do last year and it seemed to work fine then

[zeon]

Levels I'll be watching today :

1300
1316
1334
1346

All numbers are +/-1 point, so the areas are two points wide.

[erierambler]

Levels for today are:
1305, 1328, and 1334.
erie

[DbPhoenix]

FWIW, using the volume range "boxes" from my Blog, the first resistance area is 23-23.25 and the second is 26.5-.75.

[zeon]

	Quote:	DbPhoenix
	FWIW, using the volume range "boxes" from my Blog, the first resistance area is 23-23.25 and the second is 26.5-.75.

I'm sorry but everyone here seems to have different definitions of where to find support and resistance, and I doubt I'm to blame if there's some confusion here, because although in all the PDF files you posted on this site, never once I did see a "box" come up. Then in all the dailies you use boxes,... and to be honest I've tried looking at it in different ways but I just can't seem to find how you come up with those boxes. They seem to be drawn in a very "discretionary" sense.

[DbPhoenix]

Simply a variety of ways of describing the same thing. The common theme in everything I've posted is price and volume and the dynamics between demand and supply, or buyers and sellers, or buying pressure and selling pressure. It's all the same thing. Beyond that, one looks for those areas where price is trending and where it's "balancing" or seeking equilibrium. These areas or "zones" of balancing present potential levels of support and resistance. I've posted dozens of charts with support and resistance lines above and below these zones. All one has to do to make a box is plot vertical lines on either side of the zone. If one doesn't understand how or where to locate these zones of greatest trading activity or highest volume, he can plot volume at price. If that makes no sense either, he can try the MP software.

What one calls all of this is irrelevant. The objective is to locate those areas where the greatest trading activity has taken place. One can then draw lines above and below it, color it, draw a circle around it, draw a box around it. Doesn't matter. What matters is locating the zone. That's what I had been doing for three weeks in my Blog. As for today's numbers, those were derived from the chart I posted last Friday.

One can, of course, limit himself to "points" and "levels" without regard for where those points and levels lie. But if they don't work, the logical conclusion is that they don't represent support and resistance after all.

This is a chart I posted several weeks ago. The only difference is that I've enclosed the zones:
.

.

[zeon]

	Quote:	DbPhoenix
	Simply a variety of ways of describing the same thing. The common theme in everything I've posted is price and volume and the dynamics between demand and supply, or buyers and sellers, or buying pressure and selling pressure. It's all the same thing. Beyond that, one looks for those areas where price is trending and where it's "balancing" or seeking equilibrium. These areas or "zones" of balancing present potential levels of support and resistance. I've posted dozens of charts with support and resistance lines above and below these zones. All one has to do to make a box is plot vertical lines on either side of the zone. If one doesn't understand how or where to locate these zones of greatest trading activity or highest volume, he can plot volume at price. If that makes no sense either, he can try the MP software. What one calls all of this is irrelevant. The objective is to locate those areas where the greatest trading activity has taken place. One can then draw lines above and below it, color it, draw a circle around it, draw a box around it. Doesn't matter. What matters is locating the zone. That's what I had been doing for three weeks in my Blog. As for today's numbers, those were derived from the chart I posted last Friday. One can, of course, limit himself to "points" and "levels" without regard for where those points and levels lie. But if they don't work, the logical conclusion is that they don't represent support and resistance after all.

Okay, that makes a bit more sense.

Would you, according to the attached chart, then consider 133.50 - 134.00 to be an area of potential support/resistance (depending on the direction that price is coming from)?

[DbPhoenix]

33.5-34 and 33-34.5.

[zeon]

	Quote:	DbPhoenix
	33.5-34 and 33-34.5.

That makes sense, or at least sort of. Although the overlapping of boxes on your charts is still something that can cause issues in my observations. For example, when having multiple S/R levels close to eachother, I can get caught in shorting three times on a signal although only the upper resistance level for example really provided resistance.

A question though: what to do with overnight/premarket action? Do you think it's important enough to provide S/R? Or don't you take it into consideration?