Here are the charts of ES, NQ, RTY for March 11 2019 , the day we had a very strong trend up day.
This post reviews how the levels system pointed out support and resistance area on the move up, how each leg up is identified
Identifying Trend up
The first sign is PreMaret level High resistance getting broken and becoming support. Afterwards, watch RTH Open (OPG level) and see what happens when price hit each res level above , whether it is from Pre Marlet or RTH time frame. If the resistance level hits and gets broken, it opens the next level up indicating a trend up day as opposed to a two-sided trading day.
What does these levels give you on trend day?
- It identifies trendy day early on
- It tells you quickly that you are on the wrong side of market if you fade a level and price goes against you ( as opposed to guessing a wider area of resistance and risking more capital)
- This level lay out knowledge alone keeps you away from risky trading against the trend
- It gives you areas where you get to board the trend bus. That is typically where a level gets converted as support ( or resistance on a trend down day). It is much easier to trade with the trend
- Major res area /support areas will often give a reaction. So this gives you the right place to short a trend up or buy a trend down. Such levels have a high likelihood of getting a small pull back so a trader can book some profit and go break even stop. if not, it is very likely you get an escape hatch. An escape hatch is ability to scratch the trade at beak even price or small loss.
Let us review the three futures now
The chart annotates 8 distinct steps starting from launch of the trend at RTH (regular trading hours) open at 9.30 till market close. Notice major resistance area giving +2 pull backs
Note #2, #3 #4 #5 steps that gives entry into the trend
These are two areas I traded personally and posted in my community room
#3 set up 2768-2769 area support
#4 set up 2779 area support. I started with 1/3rd position long then added another 1/3rd more and stayed in till 85s which was next major area of res coming
RTY gave the best S/R conversion today and also acted as the leading instrument to watch for an ES trader. Once RTY converted a level as support, ES followed course. It also provided an added element of confirmation of trend up for ES trader
I only trade ES future but I heavily use RTY/NQ as confirmation leaders . Getting a confirmation before entry reduces the risk for my ES trade
What is Jacobs Ladders Slack Community?
It is a trading community room I created using slack software. The purpose is
- To provide an interactive learning opportunity for active day traders who are interested to learn how to trade using my price based level system
- Discuss trade set ups and share trades.
- A medium for me to comment on trading opportunity on indices, specifically ES future, on my day trading levels system during regular trading hours I comment on trader set ups as they develop in real time to the best I can.
Am I issuing buy/sell signals?
No. My comments are for educational purposes only. The purpose is to provide educational commentaries on how I use the trading system I developed. If you enter a trade based on my comments, you assume all risk on your trade.
What is being discussed there?
Educational comments on how I use my levels for day trading. If you are interested in using my levels to help with your trading, this helps to follow along during RTH when I am available
My trading system goal is to make 4 ES future points a day. So I typically point out the set ups as they develop which are candidate trade set up, per prewritten rules, to achieve the goal.
Why did I create the community?
I have been trading alone for a while. I get a lot of question on how to use my levels from my subscribers. Since i provide it for free, I can not provide details education on one to one basis as I am time constrained to do so. A trading community is best place to learn together
It is also more interesting to trade together with other active day traders
What are rules of conduct?
- Avoid discussion of other trading methods , especially volume profile, moving averages etc Why? I need laser sharp focus on price based trading using the levels I developed. I like to keep things extremely simple. The room is for discussing trade opportunities against my levels and learn how to use them to the best advantage. Discussing other methods is a distraction. There are already plenty other communities for volume profile or moving average based trading.
- No political discussion/comments
- Be courteous to other members
- Do not promote products or services
IS it Free?
Yes for now. However it may change and I may charge later a fee with sufficient notice in advance. So you can join with no obligation while it is free.
How do I join the community?
Send an email to Binu Jacob email@example.com and I will add you to the community.
Where do I get Slack software?
You have three choices.
- You can use a web based version at slack.com
- Download the desktop software
- Use the slack mobile app.
My community workspace name is jacobsladderstrading.slack.com
By sending a request to join, you acknowledge the rules of conduct and agree to abide by them. I reserve the right to remove any members who do not abide by the rules