Futures E-mini S&P 500Formazione
Lower resolution
More data on lower resolutions, smth that others call higher timeframes.
Low res waves
While being on a given resolution, the lower resolutions are mostly used to understand the trends within the overall fractal. In general, you want to trade along with the strong low res wave, and don't trade against an exhausted low res wave. While being on given resolution, you're interested in all the lower resolutions, not only in the first adjacent one. So if you operate on 1H charts, you also need to consider 6H, 1D, 1W etc, not only 6H.
For example, imagine being in a strong up trend on 1W chart. It won't go 4 ever. There's no exhaustion in 1M wave. But here we go, and exhaustion on 1Q chart. And "suddenly", the levels on 1W chart start to position as resistances! Before that, the overall trend on 1Q surely showed some weaknesses, but there was no evident evidence. This kind of info could've been only gained from more data.
Low res levels
Now that's really interesting. As I mentioned somewhere before, while being on any resolution, ALL the levels from ALL the lower resolutions should be monitored. That's why people say that it's harder to trade on lower timeframes (higher resolutions), simply because they don't know that simple fact I just mentioned. They see a reversal "in the air", but, as you already know, there's always a level. So, a level from 1Y chart does matter on 1 minute chart. Yes, it does. How?
The action around low res levels are somewhat common with the action around option strikes. In a sense, it's a microstructural phenomena as well. Without further analysis, what you know 4 sure is that low res levels might produce reactions, even if a level is from 1Y chart and you are on 1 sec chart. In general, they allow rapid price moves to come through, and produce reactions when prices approach these levels in normal way.
Why? As you know, it becomes cheap/expensive PAST the level, never before. Now imagine price comes to a level in a usual manner, or even slower. Chances for a deep dive past the levels are low. What you do? You scale in closer to the level. And now imagine price flying fast. It'll make sense to scale in deeper with a bigger size, to get better prices, to reduce risks. Why not if the market activity allows it?
It's a 1H chart on the screen there, and the yellow level is a support from 1W chart. Take a look how the 1H action unfolds around that level.
Low res waves
While being on a given resolution, the lower resolutions are mostly used to understand the trends within the overall fractal. In general, you want to trade along with the strong low res wave, and don't trade against an exhausted low res wave. While being on given resolution, you're interested in all the lower resolutions, not only in the first adjacent one. So if you operate on 1H charts, you also need to consider 6H, 1D, 1W etc, not only 6H.
For example, imagine being in a strong up trend on 1W chart. It won't go 4 ever. There's no exhaustion in 1M wave. But here we go, and exhaustion on 1Q chart. And "suddenly", the levels on 1W chart start to position as resistances! Before that, the overall trend on 1Q surely showed some weaknesses, but there was no evident evidence. This kind of info could've been only gained from more data.
Low res levels
Now that's really interesting. As I mentioned somewhere before, while being on any resolution, ALL the levels from ALL the lower resolutions should be monitored. That's why people say that it's harder to trade on lower timeframes (higher resolutions), simply because they don't know that simple fact I just mentioned. They see a reversal "in the air", but, as you already know, there's always a level. So, a level from 1Y chart does matter on 1 minute chart. Yes, it does. How?
The action around low res levels are somewhat common with the action around option strikes. In a sense, it's a microstructural phenomena as well. Without further analysis, what you know 4 sure is that low res levels might produce reactions, even if a level is from 1Y chart and you are on 1 sec chart. In general, they allow rapid price moves to come through, and produce reactions when prices approach these levels in normal way.
Why? As you know, it becomes cheap/expensive PAST the level, never before. Now imagine price comes to a level in a usual manner, or even slower. Chances for a deep dive past the levels are low. What you do? You scale in closer to the level. And now imagine price flying fast. It'll make sense to scale in deeper with a bigger size, to get better prices, to reduce risks. Why not if the market activity allows it?
It's a 1H chart on the screen there, and the yellow level is a support from 1W chart. Take a look how the 1H action unfolds around that level.
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