Day Trading the SP Futures with Initial S/R and the NYSE TICK

Written by Mike Reed

The area of support or resistance that is hit FIRST inrepparttar morning has special significance. Inrepparttar 148261 first hour of trading,repparttar 148262 market's reaction to initial support or resistance is a good "tell" forrepparttar 148263 strength ofrepparttar 148264 next move.

For instance, ifrepparttar 148265 market moves up inrepparttar 148266 first 20 minutes of trading, touchesrepparttar 148267 initial resistance zone, and then turns down, this implies that a good tradable downtrend move is likely to develop.

How strong that new trend becomes is market-dependent. Asrepparttar 148268 market falls, its reaction to each new support zone gives an indication of how weak or strongrepparttar 148269 new downtrend is. Ifrepparttar 148270 market falls to initial support and breaks down through it without a stall or a bounce, it will probably continue down torepparttar 148271 next level of support. But, ifrepparttar 148272 market loses downside momentum nearrepparttar 148273 initial support zone,repparttar 148274 downtrend may well be over.

When price comes into a resistance or support area,repparttar 148275 NYSE TICK is by farrepparttar 148276 best indicator of what price may do from this point. What isrepparttar 148277 "TICK"? The TICK is simplyrepparttar 148278 difference betweenrepparttar 148279 number of stocks that last traded on an "up-tick" versusrepparttar 148280 number of stocks that last traded on a "down-tick". Whenrepparttar 148281 TICK reaches +1000,repparttar 148282 market has reached a short term overbought extreme andrepparttar 148283 TICK reaches -1000,repparttar 148284 market has reached a short term oversold extreme.

Day Trading Success-The Key is Survival

Written by Mike Reed

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 successful discretionary trader, I've learned to recognize a group of high-probability situations (or setups) that putrepparttar odds on my side. In a way, these setups are "rules", but they are essential.

Most new traders tend to focus just about all their time and energy on finding nearly perfect "setups", but trade setups, even very good ones, are *not*repparttar 148260 key to successful trading. It'srepparttar 148261 *way* you trade your setups that keeps your losses smaller than your gains. And this isrepparttar 148262 single most essential key to trading success. To me,repparttar 148263 process of limiting losses is more than just money is survival.

I can't give you a list of mechanical survival rules that will takerepparttar 148264 place of experience and make you a successful trader overnight, but if you stick torepparttar 148265 following principles in your trading, you'll be on track. You'll be doing just aboutrepparttar 148266 opposite ofrepparttar 148267 crowd, and you'll eventually learn to limit your losses. Limiting your losses isrepparttar 148268 only way I know to make money in this business.

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