The E-Mini Pit
If you currently trade, or are interested in learning to trade, the CME E-Minis, this thread is for you. As opposed to just another market direction discussion thread, our focus here will be on providing a traders resource of specific information on the E-Minis, including discussions of brokers, trading platforms, order types, trading methodologies, money management techniques, futures-specific tax issues, etc. In addition, please post your trades, but please include your reasoning, so we can all learn. Links to charts, articles, seminars, and other message boards dealing with E-Minis or futures trading are encouraged. Also, please check this original post from time to time to see any new links we post here and to check out The Post of the Day, which will be selected from daily contributions to the board.
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POST OF THE DAY:
Message #1629 from Louis V. Lambrecht at Feb 25, 2002 1:39 PM (EDITED)
Dull day today, but very interesting behaviour on pivot lines.
Here is a text I have stolen some months ago on SI somewhere, some time.
Look at the action (both spoo and nasty) around pivot, M+, R1, M++
R2 Resistance Level 2 -
This level often provides strong resistance.
Stocks that are above and stay above R2 levels are often in strong trends
and many times continue higher (that day).
M ++ Halfway point between R1 and R2 and moderate resistance.
R1 Resistance Level 1 -
Stocks often reverse at R1,
but if they can get through this level they will usually rally to the R2 level.
M + Halfway point between the Pivot and R1.
This area is often the first test of the futures or stocks trend strength.
When a future or stock can't break through M+, it will often reverse all the way back
to the pivot level. If this area is broken through, stocks will often continue to the R1 level.
I find this is one of the most useful resistance levels.
Stocks above M+ are in moderate trends and your trading strategy should to be
to buy all dips at support levels.
Pivot - Average of previous period.
Strongest support or resistance. If stock or futures is above this line,
wait to buy pullbacks. If stock or futures is below this line,
wait for a rally to get short. Futures and stocks often oscillate above
and below this number for quite some time before a breakout in one direction.
It is usually best to wait for a few shakeouts and then buy a breakout
from the high of the trading range, or sell a breakdown from the low of the range.
Your first target for buys is the M+ level above, for shorts the target is the M- below
M - Halfway point between the Pivot and S1. T
his area is often the first test of the futures or stocks weakness.
When a future or stock can't break through M-,
it will often rally all the way back to the pivot level.
If this area is broken down through, they will usually continue to S1
S1 Support Level 1 -
Stocks often reverse at S1, but if they can break down through this level
they will usually selloff to the S2 level.
M -- Halfway point between S1 and S2 and moderate support.
S2 Support Level 2 -
This level often provides strong support.
Stocks that break down below S2 are in strong trends and often continue much lower (that day)
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Key Links for E-Mini Traders:
E-Mini Contract Specifications:
cme.com
E-Mini FAQ: cme.com
Register for Free E-Mini Real-Time Quotes:
realtime.barchart.com
E-Mini Charts (Delayed): futuresource.com
Information on Futures Brokers: elitetrader.com
Futures Trading Free Seminars: zapfutures.com
NFA Home Page: nfa.futures.org
Louis Lambrecht's Pivot Lines Spreadsheet: lvlamb.itgo.com
Tax Site for Investors and Traders: board.fairmark.com
CME 2002 Holiday Calendar: cme.com
daCharts.com: Home of E-Mini Traders Anonymous trading community:
dacharts.com |
