Some YM Numbers For 4/21/08

Some folks know I hardly use traditional indicators during my intraday trading. Typically I do with what I like to refer to as Key Levels that I identify as support and resistance. The U.S. markets open in only 6.5 hours from now so I better get some sleep. But here are some quick Key Levels for the YM (mini-dow) that I will look at during the day

12901

12857

12813

12769 – 50%

12725

12681

12637

Why these numbers? It’s really simple. 12769 is the 50% retrace of the range on last Friday’s trading. The range of the last 5 days is 177. So I divide the 177 by 4 and get the 25% number at 44. Now take that 44, add it on top of the 12769 number and we get 12813. I do the same thing from the 50% line to the downside and get 12725. Continue to stack these 44 on both sides and you get the numbers listed above. Now, will I trade at these numbers. Not exactly. I will look for these numbers to overlap with numbers I am getting through intraday price action thus confirming a key level. How to trade around them at that point is a story for another time. It’s kinda late to post it now but do the same thing here on the weekly range 50% and you will get another set of decent numbers to have in your arsenal.