Support and resistance

[jd1888]

Hi all,

I have a system that use indicators but of course I know they lag, but I would like to explore the possabiltes of support and resistance but can't seem to figure out how this could be done for day trading.

I would like to know how is it possible to use support and resistance in day trading?
How would you define the support and resistance?
Would you look at longer time frames for where the support and resistance is and the go to lower time frames to trade it or what?

Thanks

 

[churbo]

Hi JD,

Take a look at this article "Support and Resistance" with respect to day trading futures.

http://12oclocktrades.com/?page_id=37

 

[price777999]

this might help ?..........start watchin at 2:19

just started trading using only s/r myself .

 

[MarketMoverTrader]

I use support and resistance in the micro timeframes (1-minute candles) to trade my particular style - and I find they work really well. I wote about hem in yesterday's blog post: http://www.marketmovertrader.net/?p=380

I find the support and resistance levels I get are very accurate and I have learned to lean heavily on them more and more (taking a number of other things into accont as well of course). The trick is gauging if price is likely to break or turn around at a particular prediction point (a name for them coined by the education company I use).

 

[coopster]

Its mainly a visual aid to know when a stock is possibly going to present a setup that i can see quickly on a chart. They are not exact values.

I tend to use values that are from a time frame roughly 5 times higher than the timeframe i trade (something from Alexander Elder's books i think)

So if i use a 3 Min chart to trade, i use S&R lines that i drew using the 15Minute chart.

I try to trade just using these as reference and no other indicators. Then Level 2 and Time & Sales data show me if a stock is likely to pierce or bounce at a particular level.