Nickajack Creek Trading Co., Inc.

Support and Resistance Day Trading

September 30th, 2007

10/01/07 Daily Forex SRs

I have not dabbled in FOREX for a while, but with USD pairs breaking new highs and lows I thought I would keep an eye on them. Below are daily SRs for the 4 major USD pairs which might come in handy to trade market pull-backs.

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September 30th, 2007

Daily SR Questions

I received an email with a few questions about creating daily SRs that I thought would be useful to answer in a post:

Do you include Premarket price action in your SR analysis?  Yes, especially if there are large premarket movements.  I usually determine the daily SR levels the night before. 

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September 28th, 2007

10/01/07 YM Daily SRs

Here are my daily SRs for the YM DEC 07 contract:

10/01/07
14030
14008
14000
13989
13960
13953
13932
13915
13900
13895
13875
13867
13843
13827
13812
13784
13778
13740

September 28th, 2007

9/28/07 YM Trades

Today was a much better day.  The Dow 30 mini-futures provided some nice intraday swings to catch.  Here’s a chart:

9/28/07 YM Trades

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September 27th, 2007

9/28/07 YM Daily SRs

Here are my daily SRs for the YM DEC 07 contract:

09/28/07
14030
14008
14000
13989
13962
13953
13938
13915
13895
13875
13867
13843
13827
13812
13784
13778
13740

September 27th, 2007

Determining Daily SR Levels Videos

I think I finally have determined a way to post videos without auto-starting while minimizing the load time of my blog.  I tried about 6 different ways of embedding videos, however this meant to load my blog, you would have to wait for the videos to download.  The easy solution was to put the videos in separate HTML files which I’ll link in my post.  Then I found out the videos would not work in Firefox which turned out to be a code problem in the HTML files I created.  Nothing is ever easy… 🙂  So after two days of figuring this stuff out, I think the videos are finally posted for good.

I was asked a few questions yesterday (i.e. Wed 9/26/07) about how I determine daily SR levels.  My explanation in my previous blog was not very clear.  I thought the easiest way to explain this is by going through my thought process as I create daily levels on my chart.  I created a video and converted to Flash for uploading to this blog.  The video was so big the converter created two flash files so the part 1 video will pause in the middle while it loads the second half:

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September 27th, 2007

9/27/07 YM Trades

Wow, what a tough day.  I only saw one trade and had to wait all day for it.  The market was bounded by the daily SR levels of 13962 and 14000.  The price bars were too big for my risk tolerance and never really paused and consolidated around one of the SR levels to setup a trade.  It was almost 3pm before the first tradeable setup occured.  Here’s a picture of today’s chart:

YM 9/27/07 trades

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September 26th, 2007

9/27/07 YM Daily SRs

I’m moving the daily SRs to posts rather than a single page. This is a repost of SR levels from the Daily SR page I removed.

Here are my daily SRs for the YM DEC 07 contract:

09/27/07 
14000
13962
13950
13938
13915
13895
13875
13867
13843
13827
13812
13784
13778
13740

September 26th, 2007

Intraday SRs and Consolidation Areas

Once again I spent the day working on this website and did not trade.  In reviewing the day’s price action, I thought it would be appropriate to discuss the concepts of intraday SRs and consolidation areas.

As a day unfolds, sometimes new SR areas form on a price chart. 

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September 25th, 2007

Nickajack S&R System

The first thing new traders seem to want to know is my trading system, so I’ll start the blog with documenting a system.

Simplicity is what allows a trading system to work.  I’ve programmed and back-tested hundreds of systems and have come to realize that in general the more complex a trading system, the worse it performs.  I’ve also come to the conclusion that most indicator based systems do not work.  What works best are systems based on market structure, market momentum, and/or price action. 

My S&R system is based on market structure and price action.  I define market structure on my charts by drawing horizontal lines that represent Support or Resistance AREAS.  Note that I capitalized the word area.  Support or Resistance (SR) is rarely a single price and you should think of it as a small price range.  I determine SR

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