[DbPhoenix]

This particular chart is not derived directly from the two charts above it that are included in the same post (#21). Its purpose is to show three types of S/R, not to illustrate a "zoom in".

At the time I drew it, the bulk of the trading activity was between 1760 and 1800, within the hinge, with the midpoint, or greatest number of trades, at 1780. Now, however, with so much trading activity between 1760 and 1710 over the past few days, the volume is more evenly spread across a wider zone.

[zeon]

Originally Posted by zeon »

So here is my question: if I look at last couple of weeks it seems 1765-1770 is more important. That level was "tested" (hope I'm using the right terms here) twice on the 25th and another time on the 26th where it started to rally big time. Then on the 29th it seemed to find support there, but then fell through.

Perhaps I understand S/R better than I realized. 1765-1770 is exactly where price just peaked and -if I'm saying this the right way- selling pressure is coming in.

[DbPhoenix]

Originally Posted by zeon »

Perhaps I understand S/R better than I realized. 1765-1770 is exactly where price just peaked and -if I'm saying this the right way- selling pressure is coming in.

However, 72-74 was also tested. It's the nature of the S/R zone that there will be a number of potential levels to watch. That's why one has to wait until price actually gets there before determining what's potential and what's actual. If it doesn't prompt a response from traders, it's not important.

[zeon]

Originally Posted by DbPhoenix »

However, 72-74 was also tested. It's the nature of the S/R zone that there will be a number of potential levels to watch. That's why one has to wait until price actually gets there before determining what's potential and what's actual. If it doesn't prompt a response from traders, it's not important.

Sorry for any misunderstanding, but could you perhaps add a chart of somekind? I don't see 72-74 on my chart, have looked at the futures and the cash prices. Am I missing something or are you perhaps talking about a different day?

[DbPhoenix]

The chart above, the 12th, 15th, and 20th.

[tune]

Interesting how little volume it took to break quickly above the earlier highs and that the trading activity increased as it reached that peak.



Edit: Ignore that, just checked elsewhere and my feed is wrong. Very wrong.

[DbPhoenix]

If this is a springboard, that is likely a thrust.

Also notice that consolidation till 1330 on the 29th.

[tune]

I remember it. The NQ stretched up a bit as the ES crept down before the drop through.