Tuesday, March 2, 2010

ES Futures End of Day Review 03/02/10
























The market tested the overnight high around 1400 ET, which is thirty minutes before the energy market close. Many times the market will correct during the 1400 to 1420 ET time period as energy traders wrap up the day. It's a difficult trade psychologically, but fading that test of resistance can lead to the best profits of the day with a small potential risks by using the pivot high as a stop loss point.

1120.25 is today's Point of Control.

Charles
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2 comments:

  1. Daniel SMarch 3, 2010 at 6:27 AM

    Hi charles,i am Daniel,i follow your blog every day. I wanted to ask you a few questions i hope you can help me with

    1) how do you determine your levels of support and resistance? Daily charts,market profile,60 min charts?

    2)do you use the cash session only or the 24 hr globex session for you charts ...the daily? The 60 min etc?

    3) do you prefer 60 min charts or 30 min charts ? Since the session is 6.5 hours with a 60 min chart something is missing i think

    thanks a lot for your kind help

    Daniel

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  2. Charles A PennisonMarch 3, 2010 at 6:59 AM

    Hi Daniel,

    For support and resistance, I look primarily at the overnight high and low (from 1630 ET the previous day to the next day's opening bell at 0930 ET), yesterday's Point of Control (high volume price), the 0930 ET open, and the VWAP Line. Sometimes the market will also react to the morning's high and low.

    On the 24 hr and 60 minute charts, I look at the entire 24 hour period. I use those for a wider view of support and resistance and market sentiment - the big picture.

    I use the 60 minute chart mainly to see the bigger picture. I don't use it during the open day session for trading decisions. During trading, I prefer to use the 1 minute, 5 minute and sometimes a 600 tick chart, but I mostly look at the 1 minute chart during the day. The 600 tick chart is good for seeing technical patterns such as bull and bear flags, double bottoms/tops, head and shoulder patterns and so on.

    For trading, I agree that a 30 or 15 minute chart would be better than a 60 minute chart.

    It depends on what type of trader that you are. Many scalpers only look at the matrix window to trade. Market Profile people may trade only looking at a Market Profile chart. Some swing traders may only look at a daily and weekly chart.

    Thanks for being a loyal reader.
    Charles

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