Support and Resistance

What's the relationship between price and S/R? These are key areas to look for. On hindsite we can tell how price react to earlier S/R. Question is how to trade them in real time?
Another clue that Stealth Trader mentioned is momentum, that could help.

ES 20080730

Why price stall below the line?

4 types of ppl in the market.

1. Those that've shorted the break out weeks back : worry of turning a winner to looser, buy to BE.

2. Those holding long position @ this support level weeks back : buyers who purchase near a support level, only to see price fall, are likely to sell in order to recover their losses, when price rallies to near their break-even point.

3. Those holding long position @ lower level : seeing S turn R, will sell to take profit

4. Those not in trade : with the notion of Support becomes resistance, start to sell.

ES 20080729

ES 20080728

Droping all indicators, well, not all but most. :) Trying to follow only Price action with Support/Resistance, looking at how price behave when it reaches S/R.

Price Action Journal

Found a new Journal focusing on Price Action. Susan is from Anek camp. Will be nice following this, entry using 3BR. Price Action Journal

Magnitude of trade

Two charts here, the first is trading within a range of 50 ticks. Entries has target of 10 ticks and stops ~ 10 ticks.

2nd chart has a much bigger range. In fact the day range of YM. Trading this chart will have a stop of ~30 ticks and target of ~80 ticks.
Which is better???

Trading Plan

Follows jjrvat style of scalping with AHG tweek. Seeing beauty in both methods. Lets see hows this works out. Key points are
1. follows general direction (macro oscillation) of MA240.
2. trades only waves (minor oscillation) thats follows macro osc.
3. pay attention to Market Emotion. the 25% 50% 75% lines.
4. pay attention to 50% retracement of previous minor osc. (TRO_fib)
5. use AHG color bar as entry trigger.

Looking at the chart, it is very obvious that we're not capturing the correct move with V250 chart

It looks better with the V500 chart.

No time Trading

Didn't have time to monitor market during trading hour.
will post observation after event.
Hope this will be as good a learning experience.