Range bar and volume charts may be a better solution for day trading & Support & Resistance Levels 6.19.2018

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Dear Traders,

Why I Like to Use Tick and Volume Charts for Scalping

Today, I decided to touch more on an educational feature rather than provide a certain market outlook.
Many of my clients and blog readers know that when it comes to short-term trading I am a fan of using volume charts, tick charts, range bar charts and Renko charts rather than the traditional time charts like the 1 minutes, 5 minutes etc.
My rule of thumb is that if you as a trader who makes decisions based on charts that are less than 15 minutes time frame, it may be worth your time to research, back test and do some homework as to potentially using other type of charts like volume charts, Range charts etc.
Volume charts will draw a new bar once a user defined number of contracts traded. An example is the mini SP 10,000 volume chart which will draw a new bar once 10,000 contracts are traded.
Range bar charts will draw new charts once price action has exceeded a user’s pre-defined price or ticks range. An example might be an 18 ticks range bar chart on crude oil.
While volume charts rely ONLY on volume, the range bar charts rely ONLY on price action.
Their main advantage over traditional time charts is twofold in my opinion:
If the market is moving fast, reports have come out or there is heavy volume in the market, the traditional 5 minute chart will need 5 minutes to complete the next bar before it provides you with a signal…if you have day traded futures before you know what 5 minutes can do to these markets….The volume charts or range bar charts in this case will complete the bars MUCH faster because there is strong price action and strong volume and will be able to provide a signal faster than the time charts.
On the flip side, there are times when the market is dead…low volume, sideways, choppy action. If you are using the 3 minute chart and a moving avg. cross over, you may get a signal simply because time has passed and the moving averages crossed even though the market is pretty dead….If you are using a volume chart and the market is slow…it will take a while for the bars to complete and hence it may filter out some “noise” in the market.
For some screen shots as well as a free trial to trading signals:

 

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Futures Trading Levels

06-14-2018

Contract September 2018  SP500 #ES_F Nasdaq100  #NQ_F Dow Jones  #YM_F Mini Russell #RTY_F BitCoin Index #XBT_F
Resistance 3 2815.42 7387.42 25471 1727.77 7279.78
Resistance 2 2801.08 7338.33 25309 1713.33 7036.56
Resistance 1 2789.92 7306.92 25162 1706.07 6872.55
Pivot 2775.58 7257.83 25000 1691.63 6629.33
Support 1 2764.42 7226.42 24853 1684.37 6465.32
Support 2 2750.08 7177.33 24691 1669.93 6222.10
Support 3 2738.92 7145.92 24544 1662.67 6058.09
Contract August Gold #GC_F July Silver #SI-F Aug. Crude Oil #CL-F Sept.  Bonds  #ZB_F Sept.  Euro #6E_F
Resistance 3 1289.5 16.82 68.93 144 21/32 1.1778
Resistance 2 1287.2 16.73 67.38 144 12/32 1.1741
Resistance 1 1284.1 16.61 66.51 144 1.1719
Pivot 1281.8 16.52 64.96 143 23/32 1.1682
Support 1 1278.7 16.40 64.09 143 11/32 1.1659
Support 2 1276.4 16.31 62.54 143  2/32 1.1622
Support 3 1273.3 16.19 61.67 142 22/32 1.1600
Contract July  Corn #ZC_F July Wheat #ZW_F July Beans #ZS_F July SoyMeal #ZM_F July Nat Gas #NG_F
Resistance 3 363.3 502.2 928.08 345.50 3.13
Resistance 2 361.0 498.8 919.67 343.10 3.09
Resistance 1 358.5 494.4 914.08 339.30 3.03
Pivot 356.3 491.1 905.67 336.90 2.99
Support 1 353.8 486.7 900.1 333.1 2.9
Support 2 351.5 483.3 891.67 330.70 2.88
Support 3 349.0 478.9 886.08 326.90 2.81

Economic Reports, source: 

http://app.bettertrader.co 

 

 

 

 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

Posted in: Future Trading News  

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