Many traders struggle to find support and resistance, so today we’re reviewing a tool designed to do exactly that.
The TriggerCharts Commander Series uses proprietary algorithms to find key chart levels. It’s also one of the popular products in our TradingApp Store, which lets ordinary customers benefit from the work of professional developers.
“It’s hard to know the real price people are buying or selling,” said creator Andrew Horowitz. “This lets you see the real levels where institutions may be active.”
Commander features the Altimeter and Radar indicators. Today we’ll focus on Altimeter, which draws three dotted lines on the chart. Red shows resistance across the top, green shows support across the bottom and blue indicates a volume-based intermediate level.
Horowitz highlighted two recent examples of how breakdowns of his support lines was followed by more aggressive selling in CME’s S&P 500 E-mini futures (@ES). The first level formed at 2748 March 14-16, and was broken on the 19th.
The next support line took shape at 2716 after Wednesday’s Federal Reserve meeting. Sellers hammered @ES through that level overnight, and kept driving it lower almost all of yesterday.
Horowitz said his indicators help customers judge the quality of support and resistance. That, in turn, can help identify “fast zones” of quick price movement that may follow breakouts and breakdowns. For example, Thursday’s sharp drop.
After yesterday’s selloff, @ES tried to hold its March 2 low around 2650. (See this post for more on that level.) Horowitz said that if this level fails, @ES may need to retest 2600.
“That line dates back to December, and has significant amounts of support from several days,” he explained.
This is the second article profiling some of the top products in TradeStation’s TradingApp store. Click here for our earlier post on Sal Starzun’s Moon-ES automated trading system.