Technical analysis II

Support and resistance More in depth analysis

Many types of support and resistance

Significant pivots

Floor trader pivots

Fibonacci retracements

Trend lines

Pivots Turning point

Caused by a significant amount of buying or selling

Think about it: Do you and I have an account size to create that type of rally or drop?

So who is buying and selling?

Significant pivot points Previous day’s high/lows

Weekly highs/lows

Monthly highs/lows

Yearly highs/lows

Usually strong support/resistance levels

Look for a daily close beyond the support and resistance levels.

E.g. ES 2011 lows

Last week’s high/low

March high/low

Again consider this question:

Do you and I have an account size to create this type of move in the biggest equity index market in the world?

Floor trader pivots Pivot points that act like support and resistance levels

P=(H+L+C)/3

S1=P×2-H

S2=P-(H-L)

R1=P×2-L

R2=P+(H-L)

Fibonacci Retracement A term used in technical analysis that refers to areas of

support or resistance.

Horizontal lines

Trend Line A diagonal line between 2 or more price pivot points.

Up trend line can only be support

Down trend line can only be resistance