Free Info – Day Trading – Moving Averages vs Support and Resistance

Futures Trading Systems HeaderFutures Trading Systems Spacer

Futures Trading Systems
Navigation

Day Trading – Moving Averages vs Support and Resistance

Home

 

Free eBook

Free Articles

Links

Free Offer

Futures Trading Systems Spacer When day trading the SP and Nasdaq futures, do you rely on your moving averages more than your support & resistant areas?

During the first hour of trading, the support and resistance zones on the SP and Nasdaq futures are the most important things to watch. The moving averages have not yet had a chance to come into play.

After that, if a trend is developing I watch several key exponential and simple moving averages on the 2 minute, the 5 minute and the 13 minute SP and Nasdaq futures charts.

These specific moving averages give reliable support and resistance for the market as long as the slope of the moving averages are fairly steep, indicating a trend. When there is no trend, the moving averages are flat and pretty much worthless.

When a trending market makes a countertrend move, and hits a key moving average on two or more different time frames at the same time, the probability of a good trade setup increases dramatically. If you get three hits at the same time, it’s even better. Sometimes you’ll see one key moving average get hit on the five minute SP chart at the same time another moving average is hit on the 13 minute Nasdaq chart. This also gives a good trade setup.

Eventually, a trending market will reach the next major support or resistance zone. At that point the zones once again become more important than the moving averages.

In afternoon trading, the market has often broken through a support or resistance zone several times. In that case, the zone is no longer useful, and new areas of support and resistance can usually be found. When I find them, I send my subscribers an RBI Intraday Update with the new support or resistance areas, and a description of what I think the market will do if it moves above or below them.

About the Author

Mike Reed is author of TradeStalker’s RBI Trader’s Updates. He has been trading the Market for 23 years. His support and resistance numbers have been published on the internet since 1996. Mike’s nightly support and resistance zones are specific and incredibly accurate. He offers an unlimited free trial of his nightly TradeStalker RBI Trader’s Updates. http://www.TradeStalker.com
Copyright 2005 Mike Reed

 

Futures Trading Systems
Morefreearticles:

Equity Curve Drawdown and Commitment
All trading and investing methods must deal with the inevitable drawdown from the most recent peak in one’s equity curve to a bottom before reversing and potentially making a new high. Seasoned systems traders are well familiar with the drawdown…

Day Trading Success-The Key is Survival
A lot of traders, especially new traders, are looking for a list of simple trading rules to follow. “Rules-based trading” is better than an undisciplined approach, that’s for sure. But simple mechanical rules have not worked for me. Like every…

Forex Trading Education: Things You Should Know About Forex Trading
How difficult is it to make money trading the Forex market? Howmuch time does it take to actually be able to make a livingtrading the Forex market? These and other important aspects oftrading are to be discussed in this article. Trading…

Forex Trading Systems: Mechanical Vs. Discretionary Systems.
There are basically two types of Forex trading systems, mechanical and discretionary systems. The trading signals that come out of mechanical systems are mainly based off technical analysis applied in a systematic way. On the other hand,…

Forex Trading Software
If you are looking to get started trading the Forex, you willfind that there are numerous software programs available (bothweb based and desktop based) for you to use in your trading. Infact, most brokers offer clients a software package for…

]]>

 

 

]]>

SitemapLink to Us

© 2005 by The Smart People Company for Futures Trading Systems

‘3’) {data=data+’&cd=’+screen.colorDepth+’&rs=’+escape(screen.width+ ‘ x ‘+screen.height)+’&tz=’+ntz.getTimezoneOffset()+’&je=’+ navigator.javaEnabled()};i=new Image();i.src=nhp+’://counter.hitslink.com/statistics.asp’+’?v=1&s=26&acct=freetradinginfo’+data+’&tks=’+d.getTime(); //]]]]>]]>

Leave a Reply