Support and Resistance Levels with Market Structure


Today’s post is for Friday’s session as we saw a reversal day in the index’s as the market closed up towards the upper end of days trading range.

We may see more follow through in the coming days as the market attempts to recover some of the lost ground it suffered in the past week. There is some good support coming in on the NASDAQ which I don’t usually follow but it is a good market to keep an eye on as is the Dow. For those trading the S&P emini market, those other markets can lend insight into some key support and resistance area’s.

Market sentiment has gotten a lot less bullish than it was just a few weeks ago and currently close to the other end of the spectrum, which is actually positive.  It will be interesting to see how the market will hold up here as we get ready to finish up with October and move into November, shifting from one of the worst months of the year to one of the best of the year. There has been lots of talk about a market crash which to me may be sign that we won’t see one at this time. Just my opinion on the matter as anything can happen, but the obvious is not usually what takes place when everyone is looking for it.

We have come under pressure since I gave a market update a few weeks ago and that did come to pass, but this area will be pretty important in the days ahead. The lows will need to hold from Friday’s low and at least for now I think they will. A bounce of 200 + points on the Dow and 25 points or so on the S&P is looking very possible this week, so be open for that, but not locked in mentally. Always look both ways to keep balanced and objective.


This brings me to a topic that I have written about before, but the importance of looking both ways and being objective. If you only look to what you think will take place and this is in the intra day trading for traders scalping for profit, you will blind yourself to what is actually happening. If you have a mental disposition to a long market move taking hold, you will not see the short opportunity that is right in front of you. Not only will you miss the current move, but will be up against a market that does not care what you think and will stop you out and it may be more than once or twice.

If you force your will onto the market, you will not make it. Traders need to listen to the market and only take action when it is warranted and you have that trading edge I was speaking of in my last post. With no edge, you are guessing and that is no way to trade. Forcing trades is like pushing on a string. It usually does not work out, so don’t do it.

It is really important to understand the market flow of what instrument you trade. There is a unique support and resistance levels that are not often seen by most people. As the market moves to certain area’s on the chart, much of which is done with orderly market structure and purpose.

Market structure is being put together on all levels and time frames as it builds into these key support and resistance levels. Most people only see these levels in a horizontal way, but they exist in so many other angels and fashions unseen and most often hidden from most traders. Is it any wonder that the market goes to certain levels and stops. It is not random price moves, but a well constructed effort that is driven by those who can see these levels and “likely target area’s.

Again, these levels exist in all time frames as the market is fractal in nature, which just means, it exhibits the exact same market structure traits across multiple time frames. Depending on your objectives, scalp trading for small targets or riding out a long trending move, the road map exists for those who can see it. You need to first be able to see the market structure so that you can construct a plan on how you get in and out on your way there. The key is limiting trading risk upon entry and get the move going in your direction right away, which may not be that easy for most traders. The key is in knowing what to do and when to do it. That exists in a well-defined trading plan that will take you there while limiting ones risk to a minimal level.

Self control is key in being able to pull this off and controlling any trading anxiety you might feel up against as you pull the trigger. You always have a worst possible scenario in place and that will help to minimize that anxiety. This goes for each trade put on and for the day as a whole. If its left open, there is no safeguards to protect you from repeated bad judgement.

If you can assume the risk and be OK with it, then enter with confidence as you follow your trading plan, this will ease the burden. The trading plan you follow will have to be something that you can come to expect results. Trading results are the bottom line and the results of that plan.


In Friday’s market I had just put on one trade for 3-4 points in a few minutes and was good for day with that. I did also point out in real-time the next 4 market turning points exactly in a training session for members. Those include some nice target area’s not shown but do show the entry points in the charts below.  Best to you all !!