Best way to define support and resistance for day trading, scalping and position trading futures

Questions:

– Different ways of defining support and resistance

o Use a slower chart timeframe first to define the most high percentage areas on my chart.

 Add trend lines

• Looking to define a wedge, channel, horseshoe pattern

 Find a sideways market / trading range

• There may NOT be one
• Find highs and find the lows, and trade accordingly.

 Look for double-tops and bottoms, these will also be MAJOR support/resistance
 Add big round numbers (75.00, 1.2800, 1200.0)

– How many contract need to be traded to move the market 1 tick

o No real answer
o What makes the market move?

 Buyers without equal sellers (market moves UP)
 Sellers without equal buyers (market moves down)
 If the sell pressure = buy pressure the market stays flat.

– What type of charts do we use?

o I prefer range charts

– How do we determine a scalp or a day trade? When do we know which is which?

o You need to find out what type of trader YOU are:

 Scalper
 Check the blog for the other types.
 It depends on the Chart you are using to enter the trade

o Check the timeframe you are using

 4 and 8 range = scalpers
 13 and 21 range = day traders
 21+ range = swing and position traders

– What to expect with the Fall coming

o More volume comes in as the week progresses
o Quad witching on Friday
o Best price action of the year until December 15th, then we go back on break for the new year holiday.

 More volume = more trading opportunities = more consistent trading results

– Double-tops and bottoms

o We consider these to be major levels of support and resistance
o Our ‘auto levels’ indicator finds ALL of these for us without a hitch.

– Time & sales window properties

o Advanced course download section look at the top for ‘time and sales properties; and make your match the image.