This means that of the methods we use to derive the numbers two or more of them are producing support or resistance numbers in this area. This can mean that the area has been an area of congestion or might become such, or that it might give a strong reaction to the prevailing direction in that futures market and the emini futures market associated with it.

 

 

Among the first questions I had as a beginning trader are "What makes the market turn?" and "Why did it do it there?" Trading is full of surprises and as such it is a very challenging occupation. It is really an art as much as a science. Traders have computed support and resistance for a long time and almost everyone knows the "standard" support and resistance numbers. What we have noticed is that the "standard" numbers do not often give us an edge. So we attempt to look for the "hidden" support and resistance numbers that others are missing. We believe that by finding these areas where the probability favors a turning point, that gives us more of an edge for a successful trade.

 

 

When the market approaches a number level, we attempt to evaluate the price action of the market to determine if the buyers or the sellers are in control and what is the likelihood that the level will hold or not. This is one place where the art of reading the tape can be very useful.

 

 

 

We have found by experience that these four futures markets provide the kind of information needed to effectively trade and make money. Not all markets provide enough of the right kind of information that is needed in a timely manner. Some of the information we use gives us a feel for what is the next likely move in the market. This is part of reading the market.

 

 

The LITS level is a way of determining the overall trend of the market. It is the "Line In The Sand" that we use to determine if the market is long term bullish or long term bearish.