3. The Magic of Common Numbers: How to Identify the Crucial
     Support and Resistance Levels in Any Market
Observing market movement tells us that price fluctuates from a level of support to a level of resistance. Understanding these support and resistance levels can help us enter, exit and manage our trades more effectively. But which support and resistance levels are the most important for our consideration? Looking at an intraday S&P price chart, you can find a multitude of these levels - and the market pays respect to some, while it completely ignores others.
 
 Many different approaches are used to identify support and resistance levels in the market, but a great number of them are most unreliable. These approaches include, but are not limited to methodologies that utilize Fibonnacci numbers and ratios, trend lines, moving averages or Gann concepts. Those techniques have a static view of the market. Those approaches assume that the market will repeat its past behavior and experience in the same exact manner and can therefore be viewed with a linearly. They also bear fixed intervals for inputs which creates yet another problem. The market is not a static phenomenon and we cannot expect the market to disregard all the changes of economic and industrial Macroforces that constantly exert pressure on price movements.
 
 The market is most certainly a Complex and Dynamic phenomenon - but it is clear that price fluctuates between levels of support and resistance. How can we identify these levels in advance and not in hindsight? This question was the main criteria during my study and approach to trading the S&P market. In this article, I’ll explain what levels of support and resistance are the most critical and how we as traders can identify them.
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4. Market Focal Points Your Edge For An Accurate Intermarket
    Analysis.
Intermarket analysis typically reveals the relationship between two different markets. In the hands of the technical trader it is primarily used as a tool to evaluate supportive and confirming information of the performed analysis. It can be a valuable tool for the position trader whose primary outlook is the major daily trend of a market. For the day trader however, intermarket analysis can be nothing less than a disaster. In this article, we will review the fundamental premises of intermarket analysis and market relationships and illustrate why this type of thought process can be detrimental to the day trader. In doing so, we will look to Internal Dynamics as the primary factor in market movement. A systematic approach to market behavior supports this important assumption. External factors may perturb the market’s dynamic equilibrium and cause deviations from its habitual patterns for a short time, but after awhile the market will resume its natural order and rhythm. External factors that are strong enough to influence market movement and direction can be referred to as Focal Points.  Focal Points helps both day traders and swing traders to take full advantage of intermarket analysis and avoid any associated its pitfalls.  By understanding and implementing intermarket analysis under the guidance and influence of Focal Points, one could develop a meaningful insight on the different markets’ movements and their influence on each other.  Read More.

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