HOT Trading Tips

[teezeike]

Hi All,

Have a good look at the following:

1. How to determine a trending day
a.If Market Open Gap is large from yesterdays' range(high and Low), then look out for a directional trade.
b. At Open, if next key support is broken and not immediately reverse, then look out for down trend
c. At Open, if next key resistance is broken and not immediately reverse, then look out for up-trend.

2. How to trade a directional market ( Example Uptrend)
a. If next resiatance is broken, buy at retest
b. Use the below support as stop loss position.
c. Use the above resistance as sell limit.
d. Repeat buy at the next resistance, if condition still exist( That is broken and then retest).
e. If bouced and breaks below support and not reverse immediately, then probably the trend has changed.

* Note. This is quite inverse to "let your profit run". But it gives you 100% pips of the trend. And you are not in the market 100% of the time and you are not affected by sudden reversal in the trend.

* Note. THE KEY TO TRADING IS KNOWING THE POSSIBLE DIRECTION OF THE MARKET AND TECHNICAL LEVELS. TECHICAL LEVELS ARE NEVER CALCULATED...THEY ARE OBSERVED FROM HISTORICAL ACTIONS AND COULD CHANGE DURING CURRENT ACTION. ALL NEWS EXCEPT MAJOR ONES ARE ALREADY PRICED INTO THESE LEVELS OF PRICE.

Thank you for the attention.

Ted

 

[tomorton]

Resistance and support in practice are not so objectively found as you seem to suggest, nor will all traders agree on the degree of reliance that should be put on any chosen S/R.
There's lots of good stuff in 'Street Smarts' by Raschke and Connors on the style of trading you are picturing.

 

[teezeike]

Resistance and support in practice are not so objectively found as you seem to suggest, nor will all traders agree on the degree of reliance that should be put on any chosen S/R.
There's lots of good stuff in 'Street Smarts' by Raschke and Connors on the style of trading you are picturing.

Hi,

For major markets such as S&P et al, there seems to be concensus levels. if you are able to pick them, then that makes one pretty good. Also notice that new levels could develop during action. The ability of one to pick them out makes one stand out.