Daytrading- Big Picture and Volume Analysis

Here is an Example of how things come together for a high probability trade setup

We know we are in an overall 1260-1250 bracket now, and identified possible resistance within this bracket if price was to hold. and move lower.

Once price moved past this resistance on heavy volume (right), it opened the door to a high probabaility long trade after a pullback to move to at least to the top of the main bracket 1260-1250 bracket.
 

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Quote from EMC2Trader:

Here is an Example of how things come together for a high probability trade setup

We know we are in an overall 1260-1250 bracket now, and identified possible resistance within this bracket if price was to hold. and move lower.

Once price moved past this resistance on heavy volume (right), it opened the door to a high probabaility long trade after a pullback to move to at least to the top of the main bracket 1260-1250 bracket.
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Heard it all before, you sound like you took an Oliver Velez course or Pristine maybe, give me a chart ill analyze the past and tell you why it did what it did no problem. But you know in the end its all about tape recognition, or arbing, chart is only good to see the potential for price movement thats all, good luck.
 
Quote from pumpingdumps:

Heard it all before, you sound like you took an Oliver Velez course or Pristine maybe, give me a chart ill analyze the past and tell you why it did what it did no problem. But you know in the end its all about tape recognition, or arbing, chart is only good to see the potential for price movement thats all, good luck.
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Never took a Velez or Pristine course...Everything for the chart I posted was discussed and referenced ahead of time, and I totally agree a chart is only good for seeing the potential for price movement thats all.
 
If you read the prior information referenced, you'd see I started the session with a down bias. Therefore, I took a short trade to start the day that resulted in a small loss as seen in the attached chart.

Yes I take small losing trades all the time.

Im looking forward to the criticism for this post.
 

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Quote from shortorlong:

You also said we'd be in a range all day which is a more interesting observation imo. Can you break down that call?
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Please point out where I said "We'd be in a range all day?"
 
Quote from EMC2Trader:

07-22-08 Pre-Open Comments 6:00 am Price=1250

Although this looks like a big gap down, at the moment we are simply at the bottom of 1260-1250 consolidation area...We had a false break up on low volume yesterday, and we'll have to see if the same happens today on the downside

We do have nice resistance at the 1256 area inside oonsolidation (from the patient buyers yesterday) if there is to be directional movement today, but we still need to keep a close eye on if this is going to be a 3-day merge of overlapping value or not?

From a Big Picture standpoint, we start with a down bias, which will stay in force as long as 1256 area holds to start, and then we will monitor how price moves relative to this 1260-1250 consolidation area.
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This post here is talking about consolidation area, a 10 point range, etc.

I felt like most of today was in a range (I trade NQ though). So I thought that your observation above was pretty good.
At least, until 11:40 which is still most of the day.
 
Quote from shortorlong:

This post here is talking about consolidation area, a 10 point range, etc.

I felt like most of today was in a range (I trade NQ though). So I thought that your observation above was pretty good.
At least, until 11:40 which is still most of the day.
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S/L,

Of course Ive been referencing the 1260-1250 range that has been tightening for three days, and youll never see me "predict" what is going to happen next in the market, or make a "call" of any kind.

Ive discussed in detail how when a range like this develops, price will eventually move very far out of this range.

So I said, "Keep a close eye on this range, and monitor how price moves relative to this range"

Thats a far cry from any kind of prediction, and if you asked for my prediction, I could have said with certainty that price will move strongly up or down out of this range.
 
When you have a tight consolidation that coils for a long period of time, we all know a breakout is coming.

Since a consolidation is marked by patient buyers and sellers drying up above and below, we know both patient participants are now located way above and below this range.

Therefore, when you see a volume extreme inside the range, you know this presents an anxious participant, not a patient one, and this is in all liklihood the clue as to who will win the all important patient participant tug of war.

Today, the buyers turned anxious on the volume extremes higher, and the patient sellers won the tug of war as price moved, out of the range, and strongly to the upside.
 

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