Day trading the SP and Nasdaq, do you rely on your moving averages more than your support and resistance areas? During the first hour of trading, the support and resistance zones on the SP and Nasdaq are the most important things to see. The moving averages have not yet had the opportunity to come into play. After that, if a trend is developing I see several key exponential and simple moving averages in 2 minutes, 5 minutes and the SP 13 minutes and Nasdaq charts. These specific moving averages give reliable support and resistance for the market, provided that the slope of the moving averages are fairly steep, indicating a trend. When there is a trend, moving averages are flat and nearly worthless. When a trending market makes a move against trend and moving average shot key in two or more different periods at the same time, the likelihood of a good set of trade increases dramatically. If you get three hits at the same time, it is even better. Sometimes you'll see one key moving average SP beaten on the table five minutes, at the same time another moving average is beaten in the table Nasdaq 13 minutes.
This also gives a good trade setup. Finally, a market with a tendency to reach the next major support or resistance zone. At that time, areas of return to be more important than moving averages. During the afternoon, the market has often broken through support or resistance zone several times. In this case, the area is not useful, and new areas of support and resistance can be found.
When I meet them, I send my users an RBI Intraday Update with the support of the new areas or resistance, and a description of what I think the market will do if it moves above or below them. Mike Reed is author of RBI Trader TradeStalker updates. a l has been trading the market for 23 years. Your support and resistance numbers have been published online since 1996. Support all Mike nights and resistance zones are specific and very precise. It offers an unlimited free trial update your night TradeStalker RBI merchant.
