Day Trading - Moving Averages vs Support and Resistance - Answering Service Resources

Home
>
Currency Trading
>
Day Trading - Moving Averages vs Support and Resistance

Day Trading - Moving Averages vs Support and Resistance

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.

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

In The News:

Make Your Trading truly efficient by Connection2Forex
TransWorldNews (press release), GA - 14 hours ago
Connection2Forex is a 100 percent mechanical trading system whose two basic important factors that combine currency trading are price action and market ...

Foreign currency trading is as risky as it gets
Wall Street Journal - Jul 17, 2008
By JENNIFER WATERS The steep drop in the value of the dollar has many individual investors flirting with dipping into foreign currency trading in order to ...

AFP
Yen Declines as JPMorgan Earnings Fuel Demand for Higher Yields
Bloomberg - Jul 17, 2008
... the problems with the financial sector are still present,'' said John McCarthy, director of currency trading at ING Financial Markets LLC in New York. ...
Asian stock markets trade mixed - Asian commentary RTT News
US dollar nears all-time low Sydney Morning Herald
Dollar Little Changed Before Housing, Manufacturing Reports Bloomberg
Bloomberg - Bloombergall 520 news articles

Rupee remains under pressure against dollar
Daily Times, Pakistan - 9 hours ago
Thus, the national currency lost Rs 2.1. The rupee also lost Rs 3.89 versus the single currency. The euro started off the weekâ€™s trading at Rs 110.41 for ...

FXCM Adds High-Interest-Rate Currency Pairs to Its Forex Trading ...
PR-CANADA.net (press release), Montenegro - 15 hours ago
When trading exotic currency pairs, please be advised that liquidity in emerging-market currencies is significantly less than G8-country currency pairs. ...

Church lashed on Olint
Jamaica Gleaner, Jamaica - Jul 16, 2008
Christians who placed their funds in Olint Corporation Ltd and other foreign currency trading-related investment schemes were naÃ¯ve and foolish, ...

Currency Trading Market Conditions Difficult, Can the Euro ...
Daily FX, NY - Jul 14, 2008
Currency trading markets have seen a major pickup in volatility through the past several days of trading, but relatively limited follow-through makes it ...

CNNMoney.com
IBM profit tops targets, forecast up
guardian.co.uk, UK - Jul 17, 2008
Currency gains added 7 percentage points to the growth rate, IBM said. Analysts, on average, expected profit of $1.82 per share and revenue of $25.92 ...
IBM Strengthed By Global Growth, Services Forbes
IBM 2Q profit jumps 22 percent, beats forecast The Associated Press
IBM Beats Estimates (Update) TheStreet.com
New York Times - Investor's Business Daily (subscription)all 470 news articles

Forex options market held clues to dollar's moves
MarketWatch - Jul 18, 2008
On Tuesday, the euro hit a new record high of $1.6036 -- its loftiest level since the single European currency began trading in January 1999. ...
Dollar modestly higher but capped by rising crude MarketWatch
all 4 news articles

Central bank says yuan trading going â€˜very smoothlyâ€™
Taipei Times, Taiwan - Jul 10, 2008
Since the opening of cross-strait currency trading last month, Taiwanese banks and foreign currency exchange bureaus have sold 160.64 million yuan ...

currency trading - Google News

Answering Service ResourceAnswering Service Resource