Real Time Price Action- Clue to Puzzle?

[DbPhoenix]

	Quote:	zeon
	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?

As I've asked several times, why do you continue to trade this if you don't understand it? Study it. Try to understand it. If and when you think you understand it, then paper-trade it. If you never understand it, then don't try to trade it.

You're never going to understand the object if your entire focus is limited to what you're going to do about the object. The former is about the object. The latter is about you. This is not about you.

[erierambler]

Approaching r at 1:09 with a TD. Yes I might start a blog when I get back in 6 or so weeks.
erie

[erierambler]

1295, 1306, 1317-1320, and 1334. Will be my last post here for a while, see you's in May........
erie

[BlowFish]

The discussion has seems to be centring on drawing the levels or zones of potential S/R. I'd like to ask how people use the 'real time PA' of the thread title to determine whether S/R is holding or breaking?

I have noticed that price will often react to the first 'edge' of the zone and in fact retrace some way. It may then push a bit further (perhaps to the midpoint) and then finally turn from the outside edge of the zone.

Using lower time frames seems a common approach to detect the turn. Looking harder and closer at price where you anticipate this might occur if you like. The problem is that often (very often) you will get a change in trend on the lower time frame that is actually just the first reaction.

One of the answers seems perhaps to be through tactics (e.g. enter 1/3 first edge 1/3 centre 1/3 outside edge). However how does one recognise whether you have a reaction or the final turn?

Heres a picture that hopefully might illustrate what I am talking about.

[zeon]

	Quote:	BlowFish
	The discussion has seems to be centring on drawing the levels or zones of potential S/R. I'd like to ask how people use the 'real time PA' of the thread title to determine whether S/R is holding or breaking? I have noticed that price will often react to the first 'edge' of the zone and in fact retrace some way. It may then push a bit further (perhaps to the midpoint) and then finally turn from the outside edge of the zone. Using lower time frames seems a common approach to detect the turn. Looking harder and closer at price where you anticipate this might occur if you like. The problem is that often (very often) you will get a change in trend on the lower time frame that is actually just the first reaction. One of the answers seems perhaps to be through tactics (e.g. enter 1/3 first edge 1/3 centre 1/3 outside edge). However how does one recognise whether you have a reaction or the final turn? Heres a picture that hopefully might illustrate what I am talking about.

I don't know which instrument that chart is, but it's very similar to yesterday's action on the ES. I was about to ask the same question, but you saved me the trouble. I'm observing price action at important levels and have often found volume to be an important indicator in whether there's a true reaction or not. However, despite the initial reaction, in some cases the reaction doesn't last very long and the trend continues on it's direction. In other cases, a reversal occurs.

I can't seem to find anything conclusive to determine whether or not the trade is only worth a handful of points or has a much greater potential.

For example, I observed two "reactions", marked by the two blue rectangles on the attached chart (one at 1322 and one at 1330). At first what looked like price was rejecting a higher level, turned out to be nothing more than a pause before the upmove continued. The second one proved to be much more and price went back to 1322, previously resistance now turned into support.

[zeon]

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

Thanks for the explanation. Although to be honest, I think on this particular chart it's fair to say that the "balancing zones" seem easier to spot, than on charts from shorter timeframes, like intraday. For example, last couple of days on the ES seem like more choppy than otherwise...

[zeon]

	Quote:	erierambler
	1295, 1306, 1317-1320, and 1334. Will be my last post here for a while, see you's in May........ erie

1315, 1323, 1330, 1335...

[erierambler]

	Quote:	BlowFish
	The discussion has seems to be centring on drawing the levels or zones of potential S/R. I'd like to ask how people use the 'real time PA' of the thread title to determine whether S/R is holding or breaking? One of the answers seems perhaps to be through tactics (e.g. enter 1/3 first edge 1/3 centre 1/3 outside edge). However how does one recognise whether you have a reaction or the final turn?

To me it doesn't matter, it depends on one's plan. If one has resistance as a target he/she simply sells, and that's that. Who cares what price does after that. One may need to define what a reversal is. One example would be the upthrust bar just below your red trendline after the top, could define a reversal ( has the element of weakness in it ). Just my thoughts.
erie

[zeon]

	Quote:	erierambler
	To me it doesn't matter, it depends on one's plan. If one has resistance as a target he/she simply sells, and that's that. Who cares what price does after that. One may need to define what a reversal is. One example would be the upthrust bar just below your red trendline after the top, could define a reversal ( has the element of weakness in it ). Just my thoughts. erie

True erie, but that's talking about the target. If you stubbornly hold on to S/R as a target and don't care what price does in between, I'm sure you'll get stopped out quite often. Take for example the first "upthrust" in my chart, if that was a short (at resistance too) than it'd be a losing trade.

Enjoy your holiday.

[DbPhoenix]

	Quote:	BlowFish
	The discussion has seems to be centring on drawing the levels or zones of potential S/R. I'd like to ask how people use the 'real time PA' of the thread title to determine whether S/R is holding or breaking? I have noticed that price will often react to the first 'edge' of the zone and in fact retrace some way. It may then push a bit further (perhaps to the midpoint) and then finally turn from the outside edge of the zone. Using lower time frames seems a common approach to detect the turn. Looking harder and closer at price where you anticipate this might occur if you like. The problem is that often (very often) you will get a change in trend on the lower time frame that is actually just the first reaction. One of the answers seems perhaps to be through tactics (e.g. enter 1/3 first edge 1/3 centre 1/3 outside edge). However how does one recognise whether you have a reaction or the final turn? Heres a picture that hopefully might illustrate what I am talking about.

These questions are what the three weeks' worth of real-time commentary in my Blog were intended to address. Since your particular chart does not show where the S/R levels or zones came from nor provide volume, it's impossible to answer your particular questions -- at least from the standpoint of how I detect the turns -- using only this chart.

If you're genuinely interested in this, I suggest you review the charts posted in Dailies in my Blog and ask specific questions about specific charts. In this way, you'll be better able to transfer whatever you learn to whatever it is you're trading.