The Daily Price Guides will help you:  

1) Identify key support and resistance areas for today's trading.

2) Select locations to place stops and targets.

3) Determine market strength or weakness.

4) Create areas in which to consider placing trades.

The Price Guides are simple, visual tools that show potential support and resistance for today's trading.  The areas highlighted in Green indicate that there are at least three key price levels that are closely aligned.  The numbers highlighted in yellow indicate that there are two key price levels that are closely aligned. 

If you are in a gap trade or any other day trade, the Price Guides can assist you in placing your stops and targets above/below an area of confluence. 

Price Guides also reveal market strength or weakness depending on how price reacts to the confluence levels.  If the confluence holds, then the market strength in that direction is not very strong and it may be a great place to look to "fade" the current market direction.  If the price action zips right through confluence, this is an indication that the market has some significant strength in that direction and you might want to set up a trade to enter on a pullback to that violated level.

The Price Guides' areas of confluence can be viewed as places in which you can enter an order to fade the current market condition.  I like to view a confluence area as a wall that price must knock down in order to get to the other side.  One technique that can be used is to enter a limit order in front of the confluence levels with a stop on the other side of the confluence area.

Here's a simple example:

On 6/2/09 the ES Price Guide revealed an area of significant confluence from 947.25 to 947.75, and from 937.75 to 939.  Here is a snapshot of the ES Price Guide that was posted for members about 12 hours before the regular trading session commenced at 9:30 am ET:

A limit short order could have been placed ¼ point in front of the confluence area with a small stop and a target in front of the next closest confluence area at 939.  The following chart details the trade setup:

The gold bands indicate the confluence areas for the session.  As you can see, price action honored these important levels all day.  The Daily Price Guides are powerful tools that can be used in support of gap trading or as a stand alone trading tool.

For more information on using the Price Guides, check out the Explanatory Notes.