[MidKnight]

Thanks for your chart wjrusnak. It is a wild market, but I was of the thinking (possibly wrong thinking) that SR should 'work' no matter how wild a market if the concept is valid. After trading the Hang Seng for several months now, I think it does work but there is added emotion in this market. All Asian markets are susceptible to the large opening gaps because they are not 24 hour markets and are usually reacting to USA's trade.

DB,
That chart I posted was a 2000 volume chart. I use esignal and have pretty decent tick and volume data. In future I'll post the dates as well. I didn't in this chart because there is other sub-panes below and I didn't want to add them on the post to detract from the posts intent - they are irrelevant to this discussion. In future, I'll make a new chart up just for the purpose of posting.

The chart posted is in advance. That is to say, the market hasn't opened yet and those will be the levels of interest to me for today's trade.

My best wishes,
MK

[DbPhoenix]

Originally Posted by MidKnight »

Thanks for your chart wjrusnak. It is a wild market, but I was of the thinking (possibly wrong thinking) that SR should 'work' no matter how wild a market if the concept is valid. After trading the Hang Seng for several months now, I think it does work but there is added emotion in this market. All Asian markets are susceptible to the large opening gaps because they are not 24 hour markets and are usually reacting to USA's trade.

DB,
That chart I posted was a 2000 volume chart. I use esignal and have pretty decent tick and volume data. In future I'll post the dates as well. I didn't in this chart because there is other sub-panes below and I didn't want to add them on the post to detract from the posts intent - they are irrelevant to this discussion. In future, I'll make a new chart up just for the purpose of posting.

Regarding your first comment, as I said in the S/R thread, support is created at the level where buyers repeatedly buy, and resistance is created at the level where sellers repeatedly sell. Therefore, in order to "work", those traders who trade a given market have to behave in a certain way. If they buy and sell for no particular reason at no particular levels in no particular pattern, then "support" and "resistance" will of course be irrelevant concepts.

As for your CVB chart, you're not required to use any particular type of bar, nor are you required to use volume or follow transactions on a 1-tick chart. However, if you don't use volume or a tick chart (or some very small interval chart), you'll be in the position of having to trade pure support and resistance without following price action per se, and that can be tough. If you begin to feel as though you're stumbling in the dark, consider including price action in your S/R explorations.

[MidKnight]

Roger that DB. I do use a small volume chart as well. When the volume is moving nicely, these print every 0-5 seconds. I'll keep posting daily for a while so we can evaluate the relevance of the S/R concept on this Hang Seng market

[MidKnight]

As expected the gap was minor. Both the immediate upper R and immediate lower S I had marked ended up containing the market. No change to my S/R areas. Hong Kong national holiday today (Thursday) so these levels will be in play for tomorrows trade (Friday).

[DbPhoenix]

Clearly you have support and resistance working for you here, at least in these examples. Do you have a strategy for taking advantage of these opportunities?

[PTVtrader]

Here's how ES sets up for me for tomorrow. Support is holding at the "highs" of its zones, but layered resistance sits above. Do I have a game plan?

[MidKnight]

Originally Posted by DbPhoenix »

Clearly you have support and resistance working for you here, at least in these examples. Do you have a strategy for taking advantage of these opportunities?

Yes but it's totally discretionary and I have a habit of executing within this S/R areas but being wrong (and stubborn) about the markets respect of these areas in real-time. I have had horrible results when attempting to enter at a first HL or LH out of the S/R. I have had better results fading large moves with very little confirmation, 3 thrusts, or false break type of patterns. Of course the lack of confirmation also means sometimes I can be wrong big time. I really need to refine how I recognize other traders trading as they approach S/R.

[DbPhoenix]

Originally Posted by PTVtrader »

Here's how ES sets up for me for tomorrow. Support is holding at the "highs" of its zones, but layered resistance sits above. Do I have a game plan?

Depends on what you plan to do if and when price reaches any of these levels. How did you arrive at them?