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> As I'm always on the lookout for more information to give me another arrow
> in my quiver, may I ask what you currently are using for signals?
Nothing that you aren't already using. As you mentioned, high, low, close,
early trading ranges, Fibonacci retracements and pivot points seem to be the
standard for intraday support and resistance. My opinion is that if these
techniques are used by other traders, one had better be aware of these key
levels if he wants to avoid running head first into a retracement.
----- Original Message -----
From: <whardy@xxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Tuesday, May 30, 2000 5:23 PM
Subject: RE: Support and resistance
> Attached is a chart of today's S&P, I will just try to quickly cover a
> couple of items from the book. The green line in RSI is a trendline drawn
> from the negative divergence, it is pretty accurate in turning the RSI back
> up (you could solve for z in the RSI formula to project the price level that
> would cause the RSI to turn here).
>
> Secondly, while in normal analysis the bearish divergence in RSI would
> certainly put you on alert to watch for a price break to the downside,
> the two cyan lines at X and Z in the price are sloped upwardly while the
> X and Z in RSI (this is a standard 14 day period) slope downward,
> creating basically a channel of the bearish divergence on the top. The
> channel is not necessary only that RSI "bottoms" show divergence (Note
> that I did not draw the bottom cyan line exactly to Z in RSI, but tried to
> project a trend forward earlier to see if it also would be of any
> significance.) Basically to get a price target take the difference b/w the
> price points X and Z (these are not the price pivots the the prices at the
> RSI pivots, on the 3 horizontal lines), and add it to Y. Or price
> projection = Y + (Z - X) In this case today it was I believe roughly
> Price proj = 1406.5 + (1402.5 - 1396) or 1413. This price was an
> attainable target that was surpassed, but there are several other price
> projections that occur later in the day. I've found personally that it
> seems to work better in longer term charts (daily and 30 minute charts.)
>
> The other two lines are just a short and long simple moving average of
> RSI to help me with entry exit signals. I think they are 8 and 55.
> Anyway, that is a little of it in a nutshell, but I did do the trade today
> (In at 1408 and out at 1415 for $1750.00) ( I should have waited for
> a trendline break MUCH later, but such is life.
>
> As I'm always on the lookout for more information to give me another arrow
> in my quiver, may I ask what you currently are using for signals?
>
> Have a nice day!
>
> Bill Hardy
>
>
> > ** Original Subject: RE: Support and resistance
> > ** Original Sender: "Glen Wallace" <gcwallace@xxxxxxxx>
> > ** Original Date: Tue, 30 May 2000 16:38:17 -0500 (CDT)
> > ** Original Message follows...
> >
> > Thanks, Bill. Could you describe, in general terms, Constance Brown's use
> > of RSI to project price? It sounds intriguing.
> >
> >
> > ----- Original Message -----From: whardy@xxxxxxx
> > To: metastock@xxxxxxxxxxxxx
> > Sent: Tuesday, May 30, 2000 9:52 AM
> > Subject: RE: Support and resistance
> >
> > Try Constance Brown's book, Technical Analysis for the Trading
Professional,
> > it does a lot with price projections (support and resistance). I just
> > finished reading it and have been trying to incorporate some of the RSI
work
> > (price projections) in my daily trading of the S&P. Of course trendlines
and
> > horizontal support lines in other time frames are always important for me
to
> > determine points of hesitation and trouble. Ms Brown also does a lot of
work
> > with Fibonacci support zones and cluster areas between multiple time
zones,
> > which I haven't tried yet, (she gives a lot of credit here to Joe
DeNapoli).
> >
> > Personally I still find yesterday's high and low points of strong
> > resistance/support, as well as the high and low for the first trading push
> > (usually 30 min to 1 hour). Anyway I hope this helps.
> >
> > Bill Hardy
> >
> >
> > > ** Original Subject: RE: Support and resistance
> > > ** Original Sender: "Glen Wallace" <>gcwallace@xxxxxxxx>
> > > ** Original Date: Tue, 30 May 2000 10:27:25 -0500 (CDT)
> > > ** Original Message follows...
> > >
> > > Can any traders here recommend some sources of information or techniques
> > > for determining intraday support and resistance levels in the S&P
> > > futures?
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