[KeyToTheCastle]

ES update:

Zone 4 has supported price as the market has become range bound for almost 3 hours now. Zones 4 & 5 are the current zones in play. Trade em as you see em.

[KeyToTheCastle]

ES wrap up: after testing zone 5 price was rejected back down towards zone 4.

Today I touched on the idea of forming these zones on an intra day time frame. I also watch zones formed on a higher time frame . As stated earlier utilizing these zones is an integral part of my trading plan. What they do for me is to highlight areas where I am interested in doing business in the market. Maybe to initiate or add to a position or maybe to take some profit. They also serve as reference areas to gauge market strength or weakness.

One thing is for certain...they let you know where you are on the playing field of price.

[KeyToTheCastle]

Already quite busy so I don't imagine that I'll be able to post very often today but I did want to follow up with how zones 4 & 5 played out over night. Both zones were tested and continued to catch price well.

From here I want to start showing some examples of longer term catch zones and then perhaps we can see how powerful it is when we have zones lining up on both the short and long term views.

Monitoring the longer term background is an integral part of my trading plan and helps to filter out losing trades that are based solely on the shorter term foreground. Ultimately this leads to upgraded opportunities in the market.

Earlier on I mentioned that monitoring areas of value (support & resistance) as being one of the legs that help to form the base of my trading plan. Well monitoring value on both the back ground and the fore ground help to form 2 more of the 4 legs. Lets call them legs 1 & 2 and value will be leg 3.

Attached chart shows how catch zones 4 & 5 continued to hold up over night.

[ricky]

how do you figure out the zones? I can't seem to figure out where exactly the zone would go.

what books would you recommend reading on this subject?

[KeyToTheCastle]

Originally Posted by ricky »

how do you figure out the zones? I can't seem to figure out where exactly the zone would go.

what books would you recommend reading on this subject?

I apologize for temporarily abandoning this thread...this past week has been insanely busy and I just have not had the time to post charts here ahead of time like I wanted to. For those of you who pm'd me I hope that I have sufficiently answered your questions.

I plan on posting again and throwing up some charts of longer time frame situations in the next day or few.

[KeyToTheCastle]

I will try and post charts all throughout tomorrow...let's see how it goes.

The attached chart shows the 2 current catch zones on an intraday basis in ES...1 above the market and 1 below. Both of these zones have been in play since late morning and have held up into the overnight session (currently 2am EST)

First thing in the morning I will update them if need be.

[KeyToTheCastle]

GM traders!
The same 2 catch zones are still in effect having contained price through out the overnight session. I will update the zones when need be.

[KeyToTheCastle]

We just went through a period of some very trade-able volatility across the board right there.

Will update es momentarily....actively trading so as zones get breached there will obviously be a gap in time b4 I come back on here to update.

I also wanted to show a view of a currency pair I have been actively trading to the short side the past few days.....the usdcad. This screen shot depicts the zones as they stood b4 7am est. you can see zone 1 supported lows yesterday. IN that zone 1 we also had confluence from a support zone created on longer time frame charts.

then as price rebounded up overnight zone 2 was effective at catching price several times b4 price broke through and up to zone 3 a 1/2 hour ago.

After posting this chart I will also post an updated view of the usdcad.