Support & Resistance in Futures Trading

A trendline you draw by hand depends on which two pivots you pick. Yesterday's high is the same number for every trader. When the market re-tests it, more participants react, which makes the level more likely to hold or break with conviction.

Futures trade almost 24 hours. The overnight high and low define the first battleground of the New York session. A move above the overnight high that holds is often a continuation; a rejection back inside is often a fade.

Price above the open tends to attract bullish flows; price below it tends to attract bearish flows. The open is not always the exact level to trade, but it tells you which side of the market is currently in control.