Short insight to trading psychology & Support & Resistance Levels 7.18.2018 - Support & Resistance Levels

Short insight to trading psychology & Support & Resistance Levels 7.18.2018

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How I like to day-(trade) by Ilan Levy-Mayer, VP
Often I get asked the question above: How do you trade (day trade)?
The answer includes a few different way as i either assist clients with their trading, trade on behalf of clients or design some automated trading systems to do the trading on my behalf.
First and most important to understand is that we are brokers first and traders second. Our job is to assist our clients, if it is a simple customer service topic with online traders or advice and execution to broker assisted and full service futures traders, we will stay focused on your needs.
I don’t have the desire to actively day-trade or be glued to the screen as I feel it will hinder my job as a broker.
With that in mind I personally use the following strategies/ methods in which I mostly assist clients with and for some execute trades on their behalf:
1. End of day swing trading
2. Weekly analysis for options trades
3. “Structured intraday set ups” that are easy to monitor and implement during the day
4. Automated trading.
1. End of day swing trading: This is done via analysis of the markets at the end of the day and using the daily chart as my main source of technical analysis. I use studies and indicators I have created over the years along with support and resistance levels. I scan a list of about 20 different futures markets and I look for certain conditions that are one of two, either a signal that market is extremely overbought/oversold with good potential to reverse OR conditions that try to predict a short to medium term trend is developing. I will then look for what I call “price confirmation” and will normally try to enter with a STOP order once a certain level is broken. Once in a trade I have initial stop and initial target that I place as GTC orders.
I will then do my best to ONLY update these orders on end of day basis.
2. Weekly options trades: I like to run a scan of 20 liquid markets and look for certain signals that suggest the market is in a trend based on the WEEKLY chart. Based on that I will recommend either options spreads to sell/ write and collect premium OR at certain times, I may recommend buying options or options spreads.
The thought behind SELLING option spreads/premium is that as long as the market does 3 of 4 scenarios, i should be able to collect and keep most of the premium. Example: If my ALGO says gold is in a downtrend on the weekly chart and I choose ( with client) to sell vertical call spread, the trade should succeed as long as gold did one of the following: confirmed signal and continued lower, traded range bound, went higher but not in a strong magnitude. As long as gold in this hypothetical example did NOT make a sharp violent move up, i would keep the premium collected as the options will expire worthless. Of course there is more to that and time value, specific strikes, values of the options GREEKS and more come into play but this is why you have access to a professional series 3 broker, so you can discuss and ask the right questions.
3. “Structured intraday set ups” For this I like to use the Edge Newsletter by ExitPoints.com. More on that as well as a free trial here.
 4. Automated trading: We have access to quite a few trading systems created by different professionals from around the world including a few I created myself. You as a client or potential client can browse quite a few of these systems and select your criteria: day trading versus swing trading, certain markets you prefer, required capital criteria and much more! you can then browse results and see which results are backtested, which are forward tested and which ones are LIVE trading results. You can start browsing right this second…..
The above is just a brief summary of some of the methods/concepts my colleagues and I like to use. Each broker has their own preferred methods. Some will lean towards seasonal spreads, other towards longer term trend following and more.
Feel free to reach out and fill out your trader’s profile at any time.

 

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

07-18-2018

 

Contract September 2018  SP500 #ES_F Nasdaq100  #NQ_F Dow Jones  #YM_F Mini Russell #RTY_F BitCoin Index #XBT_F
Resistance 3 2832.42 7489.42 25341 1714.07 7843.89
Resistance 2 2825.33 7463.58 25269 1704.63 7713.03
Resistance 1 2820.92 7433.17 25225 1698.97 7539.68
Pivot 2813.83 7407.33 25153 1689.53 7408.82
Support 1 2809.42 7376.92 25109 1683.87 7235.47
Support 2 2802.33 7351.08 25037 1674.43 7104.61
Support 3 2797.92 7320.67 24993 1668.77 6931.26
Contract August Gold #GC_F Sept. Silver #SI-F Sept. Crude Oil #CL-F Sept.  Bonds  #ZB_F Sept.  Euro #6E_F
Resistance 3 1239.1 15.87 70.01 145 24/32 1.1786
Resistance 2 1234.1 15.75 68.95 145 17/32 1.1752
Resistance 1 1230.9 15.66 68.40 145  4/32 1.1722
Pivot 1225.9 15.53 67.34 144 29/32 1.1688
Support 1 1222.7 15.44 66.79 144 16/32 1.1658
Support 2 1217.7 15.32 65.73 144  9/32 1.1624
Support 3 1214.5 15.23 65.18 143 28/32 1.1594
Contract Dec.  Corn #ZC_F Sept. Wheat #ZW_F Nov. Beans #ZS_F Dec. SoyMeal #ZM_F Aug. Nat Gas #NG_F
Resistance 3 365.9 509.3 874.50 333.93 2.78
Resistance 2 364.3 506.2 868.25 331.87 2.77
Resistance 1 362.7 500.3 863.00 328.73 2.75
Pivot 361.1 497.2 856.75 326.67 2.74
Support 1 359.4 491.3 851.5 323.5 2.7
Support 2 357.8 488.2 845.25 321.47 2.70
Support 3 356.2 482.3 840.00 318.33 2.68

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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