Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

goodoboy

ES Trade Trend

Recommended Posts

So far, I am doing fair on the ES trading compared to where I was about 4 months ago.

 

I mainly use technical analysis to trade the ES.

 

Lets say the es is moving downward since the open bell and come to key area of support, for instance a pivot. If I want go short at this pivot, is there any price action or method i can use to determine to take the trade short or not? Rather than just going short at that support, because the minor trend is down for the day. Vice versa for if I want to go long on a day when trend is up, and price action comes to a resistance.

 

Thank you

Share this post


Link to post
Share on other sites
So far, I am doing fair on the ES trading compared to where I was about 4 months ago.

 

I mainly use technical analysis to trade the ES.

 

Lets say the es is moving downward since the open bell and come to key area of support, for instance a pivot. If I want go short at this pivot, is there any price action or method i can use to determine to take the trade short or not? Rather than just going short at that support, because the minor trend is down for the day. Vice versa for if I want to go long on a day when trend is up, and price action comes to a resistance.

 

Thank you

 

Hi,

 

There are many trade signal strategies discussed here at Traderslaboratory. You've been here since March 2012...have you been experimenting with the methods discussed here to see if they work with your perspective of what is support/resistance. ???

Share this post


Link to post
Share on other sites
So far, I am doing fair on the ES trading compared to where I was about 4 months ago.

 

I mainly use technical analysis to trade the ES.

 

Lets say the es is moving downward since the open bell and come to key area of support, for instance a pivot. If I want go short at this pivot, is there any price action or method i can use to determine to take the trade short or not? Rather than just going short at that support, because the minor trend is down for the day. Vice versa for if I want to go long on a day when trend is up, and price action comes to a resistance.

 

Thank you

 

Well, it would be my preference if it's selling towards support or buying into resistance, to not take a trade until 1- I'd seen that the reaction at the level was not strong and 2- there was a decent enough pullback to get me into a trade. You could of course wait for it to penetrate the level and hope for a quick retest to give you an entry.

 

But anyway, not that I'm say it's the wrong thing to do but if you are trying to trend trade might not one of the other indices be better to look at over ES?

Share this post


Link to post
Share on other sites
Lets say the es is moving downward since the open bell and come to key area of support, for instance a pivot. If I want go short at this pivot, is there any price action or method i can use to determine to take the trade short or not? Rather than just going short at that support, because the minor trend is down for the day. Vice versa for if I want to go long on a day when trend is up, and price action comes to a resistance.

 

A pivot (if you mean a floor pivot calculated by (H+L+C)/3) is not a "key area of support." But let's say there is actual established support below. You have a few options:

 

* If you want to be short, you should already be short well before the support. Have you ever played tennis? The area between the back service line and the baseline is sometimes called "no man's land." If you area around the baseline, you'll be able to return the shot off of a bounce. If you area between the service line and the net (inside the service court area) you will be able to return the shot as a volley. However, get in between there, and the ball will be coming right to your toes, too close for a shot off a bounce, and too far for a volley. Think of selling into support as "no man's land." It works sometimes, but more often than not, buyers will at least try to push it back up. You will often be caught with a short position a point or two above the low, and your stop of 2 to 3 points will be an easy target as they push it up about 4 points off the low. Sell far enough in advance of support, or sell when the support has been clearly violated, but not in between. That's just a general idea, and there are always exceptions.

 

* If you are not already short and want to be, a good option is to just wait to see how the market responds at the low. Maybe there is a bounce off the low, and if it's weak, then you can sell it.

 

* If the support is convincingly broken, and maybe even retested, it can be a good selling opportunity.

 

* Have you considered that often the market searches for boundaries after the opening bell? It could be that the market intends to buy, but it must search just a bit lower for buyers. A 15 minute move down at the open does not mean you should always be looking to sell. Perhaps you should be buying support instead?

 

All of these are just ideas. They are generalized and meant to be. Ask yourself, "what is the intention of the market?" Not "which way is the market going?" It most always needs to move down, if it really wants to be up, and vice versa.

Share this post


Link to post
Share on other sites
Will look more into candlesticks to determine what I am looking for. Thanks

 

It will likely not help your cause, but feel free to give it a look to explore your options personally.

Share this post


Link to post
Share on other sites
A pivot (if you mean a floor pivot calculated by (H+L+C)/3) is not a "key area of support." But let's say there is actual established support below. You have a few options:

 

* If you want to be short, you should already be short well before the support. Have you ever played tennis? The area between the back service line and the baseline is sometimes called "no man's land." If you area around the baseline, you'll be able to return the shot off of a bounce. If you area between the service line and the net (inside the service court area) you will be able to return the shot as a volley. However, get in between there, and the ball will be coming right to your toes, too close for a shot off a bounce, and too far for a volley. Think of selling into support as "no man's land." It works sometimes, but more often than not, buyers will at least try to push it back up. You will often be caught with a short position a point or two above the low, and your stop of 2 to 3 points will be an easy target as they push it up about 4 points off the low. Sell far enough in advance of support, or sell when the support has been clearly violated, but not in between. That's just a general idea, and there are always exceptions.

 

* If you are not already short and want to be, a good option is to just wait to see how the market responds at the low. Maybe there is a bounce off the low, and if it's weak, then you can sell it.

 

* If the support is convincingly broken, and maybe even retested, it can be a good selling opportunity.

 

* Have you considered that often the market searches for boundaries after the opening bell? It could be that the market intends to buy, but it must search just a bit lower for buyers. A 15 minute move down at the open does not mean you should always be looking to sell. Perhaps you should be buying support instead?

 

All of these are just ideas. They are generalized and meant to be. Ask yourself, "what is the intention of the market?" Not "which way is the market going?" It most always needs to move down, if it really wants to be up, and vice versa.

 

Thank you and what you say make sense.

Share this post


Link to post
Share on other sites
So far, I am doing fair on the ES trading compared to where I was about 4 months ago.

 

I mainly use technical analysis to trade the ES.

 

Lets say the es is moving downward since the open bell and come to key area of support, for instance a pivot. If I want go short at this pivot, is there any price action or method i can use to determine to take the trade short or not? Rather than just going short at that support, because the minor trend is down for the day. Vice versa for if I want to go long on a day when trend is up, and price action comes to a resistance.

 

Thank you

 

I have spent a lot of time backtesting with price behaviour around daily pivots and have been unable to find any kind of edge with them whatsoever. This doesn't mean that there isn't one, of course - I could have missed something that others are aware of. But I can certainly say with confidence that I wouldn't place any kind of emphasis on pivot levels.

 

I hope that's helpful to you.

 

BlueHorseshoe

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 29th March 2024. GBPUSD Analysis: The Pound Trades Higher But For How Long? The global Stocks Markets are closed due to Easter Friday (Good Friday). The NASDAQ continued to follow the sideways trend while other indices again rose. The SNP500 reaches an all-time high, but the NASDAQ remains under pressure from Tesla, Meta and Apple. The Euro continues to trade lower against all major currencies including the US Dollar, Euro and Japanese Yen. The British Pound is the best performing currency during this morning’s Asian session. However, investors are largely fixing their attention on this afternoon’s Core PCE Price Index. GBPUSD – The Pound Trades Higher but For How Long? The GBPUSD is slightly higher than the day’s open and is primary due to the Pound’s strong performance. At the moment, the British Pound is increasing in value against all major currencies. However, the US Dollar Index is also trading 0.10% higher and for this reason there is a slight conflict here. If investors wish to avoid this conflict, the EURUSD is a better option. This is because, the Euro depreciating against the whole currency market avoiding the “tug-of-war” scenario. The GBPUSD is trading slightly lower than the 2-month’s average price and is trading at 49.10 on the RSI. For this reason, the price of the exchange is at a “neutral” level and is signalling neither a buy nor a sell. The day’s price action and future signals are possibly likely to be triggered by this afternoon’s Core PCE Price Index. Analysts expect the Core PCE Price Index to read 0.3% which is slightly lower than the previous month but will result in the annual figure remaining at 2.85%. The PCE rate is different to the inflation rate and the Fed aims for a rate between 1.5% to 2.00%. Therefore, even if the annual rate remains at 2.85%, as analysts expect, it would be too high for the Fed. If the rate increases, even if only slightly, the US Dollar can again renew bullish momentum and the stock market can come under pressure. This includes the SNP500. Investors are focused on the publication of data on the UK’s gross domestic product (GDP) for the last quarter of 2023: the quarterly figures decreased by 0.3%, and 0.2% over the past 12-months. This confirms the state of a shallow recession and the need for stimulation. The data, combined with a cooling labor market and a steady decline in inflation, increase the likelihood that the Bank of England will soon begin interest rate cuts. In the latest meeting the Bank of England representatives did not see any members vote for a hike. USA500 – The SNP500 Rises to New Highs, But Cannot Hold Onto Gains! The price of the SNP500 rises to an all-time high, before correcting 0.33% and ending the day slightly lower than the open price. Nonetheless, the index performs better than the NASDAQ which came under pressure from Tesla, Meta and Apple which hold a higher weight compared to the SNP500. For the SNP500, these 3 stocks hold a weight of 9.25%, whereas the 3 stocks make up 14.63% of the NASDAQ. The SNP500 is also supported by ExxonMobil’s gains due to higher energy prices. The market will remain closed on Friday due to Easter. However, the market will reopen on Monday for the US and investors can expect high volatility. Investors will also need to take into consideration how the PCE Price Index and the changed value of the US Dollar is likely to affect the stock market next week. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • MT4 is good and will be good until their parent company keep updating the software, later mt4 users will have to switch to mt5.
    • $SOUN SoundHound AI stock at 5.91 support area , see https://stockconsultant.com/?SOUN
    • $ELEV Elevation Oncology stock bull flag breakout watch , see https://stockconsultant.com/?ELEV
    • $AVDX AvidXchange stock narrow range breakout watch above 13.32 , see https://stockconsultant.com/?AVDX
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.