After the weak close below the mid-point today, it's no surprise that we're seeing the same theme continue into the overnight session. 1142.50 is the near-term overnight resistance, and we have a stronger resistance zone above that (1144.25-1146.25). Below, we have strong support in the 1136.50 area, and I'm anticipating a bounce on first touch. Same goes for the 1131.50 and 1127.50 areas; anticipating price to pause/bounce in those areas. My bias is bearish below 1146.25, neutral between 1146.25 and 1148 and cautiously bullish above 1148 with an eye to the upside resistance zones to exit Longs or initiate Shorts. If we get a sell-off tomorrow, watch the 1127-1129 support area -- If that breaks, I'm anticipating heavier liquidation.
Btw, I want to clarify that the purpose of the Key Levels is NOT to Predict future price action! The Levels serve as a sort of Road Map and provide low-risk areas to initiate and exit trades. That's it! I'm not in the Prediction business; and predicting can actually be detrimental to your P&L since you run the risk of defending your prediction instead of analyzing and responding to the Market in real-time. I don't care if the market goes up or down tomorrow; I have no vested interest either way, but I'm prepared to trade it in either direction.
Econ Data
International Trade at 7:30 AM (cst), Redbook at 7:55 AM (cst).
ES - Daily Bar Chart with Volume Profile and Key Levels
Hi there, do you use Market Profile at all in your trading to find the support and resistance?
ReplyDeleteTim
Hi Tim, yes I use certain components of Market Profile.
ReplyDeleteHi eminiplayer,
ReplyDeleteYour levels have been very useful as a guideline to initiate and exit trades with better confidence through the past few months that I have been following your blog. When you get a chnace, could you please share what strategy you use to initiate trades, chart patterns or something else? Do you have any suggested reading regarding this. Btw, thanks for the mind over markets suggestion, just got it and looking foward to reading it.
Charlotte
Your market profile and commentary are very valuable, and my trading has improved after adding market profile to my support and resistance levels. For day trades on es, do you ever use opening range, to set up trades and if so, what time frame? I generally use between 5-25 minutes as the opening range, depending in price action. Sincerely Kelly
ReplyDeleteHi Charlotte; schedule is jam packed so I'm unable to answer your question in detail right now. I would recommend checking out Dr.Brett's post for some ideas on execution: http://traderfeed.blogspot.com/2010/01/trading-process-executing-trade.html
ReplyDeleteMy approach is similar to his. Once you've identified a key level and a stop-out level; the goal is to enter the trade as close to that key level as possible.
Hi Kelly,
ReplyDeleteI keep track of the 5-min and 15 min opening range and average. Hope that helps.