In my initial post I redefined an uptrend, a downtrend and a trading range. I believe that an uptrend is Support is holding and Resistance is failing. Conversely, a downtrand is Resistance is holding and Support is failing. A trading range is both Support and Resistance are holding. Look at the following chart of the Euro. I've circled several trading ranges. Note how both Support and Resistance are holding. Notice how when the market moves higher, Support always holds (as seen by the wicks even on this rather large range chart) and Resistance fails. And when the market moves lower Resistance always holds and Support always fails. All markets trade this way- 6E, ES, CL and the NQ (these are the markets I started to track). It is also not uncommon for the converse side to hold until the dominant side also holds- meaning in an uptrend Resistance can temporarily hold until Support holds and Resistance ultimately fails and vice versa. If you look at the chart I posted yesterday of CL you can see this same concept. When trading in a range both are holding. When the market reversed you can see the shift When it was in an uptrend earlier this week Support was holding and Resistance was failing. When it reversed to the downside (after trading in a range) it put in a double bottom and resistance held trading lower. Note how beautifully Resistance held and it went down. When it went to a range both held and resistance continually held until yesterday. Once again you can see the shift as Support started to hold and Resistance started to fail and up we went.
Last edited by Aragorn; May 2nd, 2013 at 05:39 PM.
6E is a mess today. A day to step aside and spend time with the kids. Seeing where we are on the daily shows this is a big area of indecision. Not worth it.
The strategy for trading a Range is to trade the extremes and to stay out of the middle.
Last edited by Aragorn; June 5th, 2013 at 06:49 PM.
Platform: "I trade, therefore, I AM!"; Theme Song: "Atomic Dog!"
Favorite Futures: EMD, 6J, ZB
Posts: 798 since Oct 2009
Thanks: 216 given,
it would help, if the interval, bar type and analytics that you use, be shown, on those posted charts, otherwise its just so pretty, but can't be duplicated, and hence the point being made substantiated or proven on our own platforms.
hey, I understand some guys feel sharing is not caring but watering down, but these markets are just so huge, its not likely we will dull our edge or weaken your approach
I would have benefited if I could understand what you're showing here in the chart...