Trading the Stock Market with
RBI Support & Resistance
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Daily Trading Log
professional trader I’ve seen day trading the stock
market for a living watches the SP futures charts and/or the
Nasdaq futures. They do it for one specific reason and that is that Stocks
lag behind the futures markets.
that track with the market indices make their moves a little bit after the
futures markets move. It may be a few seconds, or only a fraction of a
second, but it’s an exploitable edge that experienced traders use in their
stock trading strategies.
primarily why traders who are day trading the stock
market subscribe to TradeStalker’s RBI Trader’s Updates. They
want to know where the turns and stalls are most likely to happen on the
Futures charts, so they can time their entries and exits on the stocks
example, if a guy day trading the stock market holds a long position in a
good tracking stock and it’s going up nicely, but he sees the SP futures
jump up to a resistance zone and stall, he’s going to exit that long
position, or at least part of it, before the market turns around and clips
break-out stock trader is going to watch the futures market, looking for a
futures break out that leads the stock he’s trading.
look at these charts below and you’ll see why day trading the stock market
with the RBI support and resistance levels on the SP futures really makes
chart on top shows the SP e-minis from Friday, 8/12/05 with an RBI support /
resistance level at 1236.00 (blue line) that I calculated and published to
my subscribers the night before.
bottom chart shows IBM’s one-minute chart, bar for bar, straight below it.
take a look at the top (the big circle) on the top chart where the ES
futures poke through the RBI s/r level at 1236.00 and get quickly rejected.
This is a sign of weakness in the overall market. You would be hoping for
another push to that same s/r level so you could short the e-minis.
look at the second bar after the top (in the big circle) on the ES chart.
Compare that to the same candle on the IBM chart (in the big circle).
were trying to day trade IBM without the ES futures (and my RBI s/r levels),
it looks like the pullback at that second bar is weak…
you’re holding IBM long. It looks like it will go higher. You would probably
stick with the trade and get clobbered in the next down bar, but if you
watch the futures with my support and resistance levels, you know the next
bar is going to be a long fast down move. So you get out to protect your
gains. Or if you’re flat, you might try to short IBM on that second bar in
the big circle.
look at that nice pullback right up to RBI resistance and the quick
rejection. That gives you a high probability that the market trend is going
down. So when IBM makes those two quick moves back up to the right side of
the circle, one look at that area on the futures chart lets you know what’s
going to happen. The futures are going to lead IBM down. Time to hold short,
or get out of a long position.
you day trading the stock market?
Without a doubt, the stock trading strategies that the experienced traders
use are based on the stock index futures.
to TradeStalker’s RBI Trader’s Updates in “Real Time”
learn day trading
from a 30 year experienced trader. These are
effective futures support and resistance zones available, and you’ll get
them in your email box every evening so that you can plan your trading
strategy for the next trading day.
See how my support and resistance levels and
market analysis will help your trading - no matter what method you’re
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