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  1. #1
    Junior Member

    Support and resistance system? !!!

    Does anybody knows any system that is used in end of day expiry with stocks ( I prefer these assets )

    I've been studying some movements but I'm a newbie and like some expert advice

    Most of NASDAQ stocks I can see clearly when they hit a higher or lower value ( depends if it is gain or lossing that day ) they never come to that value anymore in a specific day.

    This could be very nice to end of day expiry but I don't know how to recognize that support or resistance. I'm afraid to enter to soon or later and lost that trade

    Can anyone help me??

    Thanks

  2. #2
    Moderator Kolyo's Avatar

    no perfect system !!!

    Hi, esiconsum!

    As you are newbie in trading I recommend you to read all the articles in the BOTS School section of the site and also the weekly financial analyzes and trading tips, written by the expert traders. After you read them you have to start to watch the markets and check will they behave as the analyzes have predicted before. After you gain some experience with this type of analyzes you could jump into more specific trades and tactics. As you said there are some support and resistance intraday levels, but all of them are difficult to be predefined and used as entry points. It will be safer for you to start with weekly and monthly expirations and after you feel you are ready to start testing also with daily expirations. You have to be very familiar with the stock you trade, because every stock has its specific volatility and behaviour, so you have to watch it a lot before you start to trade it.

  3. #3
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    Quote Originally Posted by esiconsum View Post
    Does anybody knows any system that is used in end of day expiry with stocks ( I prefer these assets )

    I've been studying some movements but I'm a newbie and like some expert advice

    Most of NASDAQ stocks I can see clearly when they hit a higher or lower value ( depends if it is gain or lossing that day ) they never come to that value anymore in a specific day.

    This could be very nice to end of day expiry but I don't know how to recognize that support or resistance. I'm afraid to enter to soon or later and lost that trade

    Can anyone help me??
    Thanks
    Some use Pivot points to check support and resistance levels.
    You cannot avoid loss but u can lower its probability. Analysts can predict to some extent about market direction and a little about highs and lows. Based on that, one can analyze further about at what price will the day end. But all this analysis is based on "probability" concept and nothing is for sure. There r some indicators (both technical and fundamental) which can give an indication of how low or high a market can go. There r many sources available where u can easily find daily analysis of market. Some of them tells why a market moves to a specific high or low.

    I suggest that instead of waiting for "specific point", try to read market trend. You will then no longer need to be afraid of entering too soon or late.

  4. #4
    Veteran Member uj.forex's Avatar
    yeah, i agree with you M.J.... But for an intra-day trader or scalper, the PIVOT point can play a huge role in making him understand where the market may take the direction towards... from personal experience, during the start of European session, i CLOSELY monitor the price and its movement against the pivot point, because pivot point plays both the role of support and resistance... so when the price is indecisive and is near pivot and is bouncing back from it, chance can be take of either sell or buy, by setting a small stop loss... it WORKS....

  5. #5
    Legendry Member willyw's Avatar
    Quote Originally Posted by uj.forex View Post
    yeah, i agree with you M.J.... But for an intra-day trader or scalper, the PIVOT point can play a huge role in making him understand where the market may take the direction towards... from personal experience, during the start of European session, i CLOSELY monitor the price and its movement against the pivot point, because pivot point plays both the role of support and resistance... so when the price is indecisive and is near pivot and is bouncing back from it, chance can be take of either sell or buy, by setting a small stop loss... it WORKS....
    Its boundary line of either buy or sell. But once reverse can an agressive one-way. Setting a tight stop loss is most advisable and action have to be fast. No hesitation if not probably will suffer big losses.

  6. #6
    Specialist Member RCox's Avatar
    Quote Originally Posted by willyw View Post
    Its boundary line of either buy or sell. But once reverse can an agressive one-way. Setting a tight stop loss is most advisable and action have to be fast. No hesitation if not probably will suffer big losses.
    There are very few strategies that have consistent results with tight stop losses. This is generally because there will be a large number of stop losses in these areas and the markets will know this. When markets see vulnerability, markets will hunt that vulnerability. Risk is acceptable at that point.

  7. #7
    Specialist Member RCox's Avatar
    Quote Originally Posted by esiconsum View Post
    Does anybody knows any system that is used in end of day expiry with stocks ( I prefer these assets )

    I've been studying some movements but I'm a newbie and like some expert advice

    Most of NASDAQ stocks I can see clearly when they hit a higher or lower value ( depends if it is gain or lossing that day ) they never come to that value anymore in a specific day.

    This could be very nice to end of day expiry but I don't know how to recognize that support or resistance. I'm afraid to enter to soon or later and lost that trade

    Can anyone help me??

    Thanks
    Well, the first question is why you prefer stocks. If you are looking for a general strategy this usually means price analysis, which tends to work less well with stocks. Is there a specific reason you don't look at commodities or currencies? Different assets have varying success in different market environments.

  8. #8
    Legendry Member willyw's Avatar
    Quote Originally Posted by esiconsum View Post
    Does anybody knows any system that is used in end of day expiry with stocks ( I prefer these assets )

    I've been studying some movements but I'm a newbie and like some expert advice

    Most of NASDAQ stocks I can see clearly when they hit a higher or lower value ( depends if it is gain or lossing that day ) they never come to that value anymore in a specific day.

    This could be very nice to end of day expiry but I don't know how to recognize that support or resistance. I'm afraid to enter to soon or later and lost that trade

    Can anyone help me??

    Thanks
    For stocks, you can use fibonacci, volume analysis and Money flow index which are very useful. Volume in the stocks play a very important role in trading. Always choose liquid stocks, consider trading blue chips or mid-cap stocks. Avoid tading stocks on margin.
    Last edited by willyw; 01-31-2013 at 01:19 PM. Reason: typo error

  9. #9
    Junior Member
    where can I find the tools that can predict highs and lows of specific stock?

    Yhanks to anyone can help
    Last edited by esiconsum; 02-01-2013 at 10:44 PM.

  10. #10
    Veteran Member uj.forex's Avatar
    @Willyw: Exactly, it gives us a chance to set tight SL and look forward for the rally in our favorable direction... At least its a very strong guess, not just a blind one..

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