All of our available paid indicators are distributed in one package.
This package also includes a chart template (“PA_Indicators_ES_5min”) .
After installing the indicator package into NinjaTrader, that chart template can be
used to show a possible setup of the indicators for the ES E-mini 5 minute RTH chart.
Support and resistance are important levels where lots of buyers and sellers are willing to trade a security. It is probably the most popular price action concept used by price action traders. If these levels are broken, market psychology can shift and new levels of support and resistance might get established. Although single lines look nice on a chart, levels need to be seen as zones.
Like Al Brooks is saying here “One of the most useful rules in trading is that if something resembles a reliable pattern, it will likely behave like the reliable pattern. In any case, nothing is ever perfect or certain, so close is usually close enough.”
A support level is a level price tends to bounce off, find support as it falls. A resistance level is a level price tends to find resistance as it rises. If price breaks through a support and resistance level it is likely to continue until approaching another support or resistance level.
Every swing point can be considered a potential support or resistance level, although major swing highs and lows hold more significance, as they are visible to higher time frame traders too. Trend lines, trend channel lines and moving averages can be support and resistance too (usually very subjective, because of all the variants one can draw them).
A micro double bottom (mDB) or micro double top (mDT) consist of consecutive or almost consecutive bars with matching or nearly identical lows or highs. Micro double bottoms/tops are often traditional double bottoms/tops on a smaller time frame. The traditional DB/DT from the 4000 tick chart (left) are mDB/mDT on the 5 min chart (right)
Two lows (for a micro double bottom) occurring at the same level is only the first sign of a possible micro double bottom. Price needs to rise from the 2nd bottom above the extreme between the two bottoms – the neckline (marked with the magenta colored diamonds on the chart above). Vice versa for a micro double top.
The conservative entry for a mDB or mDT is a stop entry 1t beyond the neck line (marked here with magenta colored diamonds).
If you get a good Signal Bar at the 2nd bottom or top it makes sense to front run the conservative entry.
On a signal against a strong directional move it makes sense to wait for a 2nd attempt, a 2nd entry or strengtheners – e.g. a failed breakout.