When you trade SP and Nasdaq futures, do you focus on your moving averages rather than your support and resistance areas?
In the first hour of trading, SP and Nasdaq are the most important things to see in future support and resistance areas. The average mobile has not yet had a chance to get into the game.
After that, if the trend is developing, I see exponential and simple moving averages in the 2-minute, 5-minute, and 13-minute SP and Nasdaq futures charts.
Average moving averages provide reliable support and resilience in the market if the slope of the moving average is relatively steep, indicating the trend. When there is no trend, the moving averages are flat and worthless.
When a trend market moves the opposite trend and simultaneously hits a floating key at two or more different time intervals, the probability of a good trading setup increases dramatically. If you get three hits at once, even better. Sometimes you will see a moving average key hitting the five-minute SP chart at the same time as another moving average hitting the 13-minute Nasdaq chart. This also provides a good trading setup.
Eventually, the trending market will reach the next major support or resistance site. At this point the zones are again more important than the moving average.
In afternoon trading, the market has often crossed a support or resistance zone. In that case, the area is not usable, and new sites of support and resistance can usually be found. When I find them, I send subscribers an RBI intraday update with new areas of support or resistance, and a description of what the market will do if it moves above or below them.