I start the day marking up my charts with support and resistance. I take these from the Market Profile of the previous day as well as areas that I identified from high and low volume. Again, these are broad principals, not rules. Art, not science. You will get the feel of how to do this after a while.
Next, using colour coding, I take the value area highs and lows and draw horizontal lines on my chart. I also mark any virgin points of control with horizontal lines. The same with the single prints. I look at the whole 24 hours that the market trades.
This way, when the price trades to one of my horizontal lines, I can lean against support and resistance if and when my order flow information is compatible. Further, these are the areas that I will look to scale out.
I am now ready to trade.
I’ve been trading electronically for 15 years and now have the same edge, or more, that I had when I was on the floor.
Putting it All Together
My trading method is fairly straight forward:
- I usually only trade against one of the support or resistance lines I have drawn on my chart.
- When price is near one of these lines I look at my chart to see if there is a setup.
- If “Yes”, I look for it to trigger and I fine tune the entry.
- That’s it. From here, it’s managing the trade.
- I usually only trade against one of the support or resistance lines I have drawn on my chart.
- When price is near one of these lines I look at my chart to see if there is a setup.
- If “Yes”, I look for it to trigger and I fine tune the entry.
- That’s it. From here, it’s managing the trade.
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