Day Trading Stocks & Futures
- Thread starter TraderRavi
- Start date
- Tags banknifty bnf daytrading nifty future
how to identify and use support and resistance in day trading?
there are many ways to find support and resistance in day trading like floor pivots, Fibonacci pivots, gann 2-3 bar swing, naked price action highs, and lows and many more. all of these work and work well if you know how to use them.
I like to use a fixed percentage zig zag indicator for day trading on close price (one can use on high and low also ). how much percentage point move should be used? as per me, it can be anywhere between 0.05 to 0.1 on a 2M-3M timeframe. no idea about higher time frames than these 2.
there are 2 kinds of S/R :
1) minor- this S/R is being created by a single pivot point. its strength is less and most of the time it works well in trend.
2) major S/R- this S/R is being created by 2 or more pivot points and gives good support and resistance to PA. work well both in trend and range.
below chart shows zigzag overlayed on candlestick chart along with minor and major S/R:
the above chart is more than enough to make money consistently with trading with the trend. trend reversals trades on small time frames like 2M-3M requires excellent PA reading. one can use other indicators like 20EMA(i prefer), 34 EMA or any other, as per preference. one can use volume or volume-based indicators, can you any oscillator too. but the above chart is good enough if one knows how to read PA and how to S/R and know the "trend as off now".
trading with S/R:
there are only 2 types of trades be it any method or any system. pull back and breakout. both work well. pullbacks in trend are easy to trade. one of the set up I use breakout of major S/R and then price pullback to test it. the downside you have to have an understanding of when the trend is getting mature. most of the time I don't try to trade the whole up move or down move.
below is the chart showing a couple of PB trades. I have put 20EMA also on the chart. these are only entries one has to read and analyze PA also. I use volume also, which I have not shown on the chart.
hope it helps somebody.
there are many ways to find support and resistance in day trading like floor pivots, Fibonacci pivots, gann 2-3 bar swing, naked price action highs, and lows and many more. all of these work and work well if you know how to use them.
I like to use a fixed percentage zig zag indicator for day trading on close price (one can use on high and low also ). how much percentage point move should be used? as per me, it can be anywhere between 0.05 to 0.1 on a 2M-3M timeframe. no idea about higher time frames than these 2.
there are 2 kinds of S/R :
1) minor- this S/R is being created by a single pivot point. its strength is less and most of the time it works well in trend.
2) major S/R- this S/R is being created by 2 or more pivot points and gives good support and resistance to PA. work well both in trend and range.
below chart shows zigzag overlayed on candlestick chart along with minor and major S/R:
the above chart is more than enough to make money consistently with trading with the trend. trend reversals trades on small time frames like 2M-3M requires excellent PA reading. one can use other indicators like 20EMA(i prefer), 34 EMA or any other, as per preference. one can use volume or volume-based indicators, can you any oscillator too. but the above chart is good enough if one knows how to read PA and how to S/R and know the "trend as off now".
trading with S/R:
there are only 2 types of trades be it any method or any system. pull back and breakout. both work well. pullbacks in trend are easy to trade. one of the set up I use breakout of major S/R and then price pullback to test it. the downside you have to have an understanding of when the trend is getting mature. most of the time I don't try to trade the whole up move or down move.
below is the chart showing a couple of PB trades. I have put 20EMA also on the chart. these are only entries one has to read and analyze PA also. I use volume also, which I have not shown on the chart.
hope it helps somebody.
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