Support and Resistance can be AMAZING!


#1

I never used to put a lot of emphasis on support and resistance, but lately I’ve become a believer in its power. I’ve watched some great videos on the subject. I just made 4 screen captures from different instruments. My personal preference is to look at the HOURLY chart for support or resistance, and then switch to the 15 minute chart for possible entries. Many times a good sup/res area holds up a day or two later. What makes this strategy even more powerful is when they end up near a deviation. One day’s support or resistance can end up right at a big deviation, like +/- 2. Check these out:

Crude: Resistance holds two days later.

E-mini S&P500: Resistance holds two days later at the .7 deviation.

GBP/JPY: Resistance holds the very next day at the +2 deviation.

GBP/USD: Same thing!

Nadex binary strikes just above resistance or just below support would only have to hold for a short time. I had a successful trade on the ES a couple days ago. I used a 2-hour binary contract that had only 1 hour & 10 minutes to go. I exited the trade after 41 minutes for a $19.50 profit! Here’s that image:


#2

Hi Bill, I agree with you. Armed with izones, ice, devs and settlement, support and resistance make great bedfellows. If you want something else to look at which I have been studying over the last few weeks is Murrey math lines.the 1/8 and 8/8 lines (plenty of pdfs/videos about) give awesome support and resistance levels as do the other levels to a fascinating degree. I always thought they bordered on Voodoo…maybe they do .


#3

Thanks! I’m going to look into that. I like finding the best strategies & adding to their greatness. :slight_smile:


#4

I’m now 2/2 with my support/resistance strategy! Today it was on YM (Wall St. 30). I guess I have to look at ALL of the indices for possible trades. The ES & NQ haven’t tested any recent support or resistance lately. Today the YM was at a resistance level from 5 days ago, and it held! I’m still not sure if I should take profits early or let them expire. My binary trades usually get scary around the expiration time. Today I let it go & had an easy win! Here’s the chart:


#5

I also want to look at this strategy BEFORE major news reports. If a report is coming out at 10am, we could grab an ITM binary beyond support or resistance with a 10am expiry. The markets do move before reports, but I have a good feeling that support and resistance would be stronger before the report. There wouldn’t be enough strength to break through.