Diamond Topping Formation 2/23/18
- Thread starter Spooz Top 2
- Start date
Yup.. Only meaningful at Top or Bottoms of Long Trends ... indicating reversal of trend.
As of May 18, triangle yes, Diamond No.
If we Rip sometime this decade it will be pennant ... If we sell, which is where my camp is until proven incorrect, it would have been a DT... many conflicting Variables right now.
Pretty name by the way.... you like Sushi? Let me know when you`re in the City.
Triangles.. as do all formations.... Fail!
Which is why I enjoy watching everyone load to one side of the lopsided boat while I play Contrarian.. which is one of my strongest trading traits.. Most claim to be able to able to Play Contrarian but when push come to shove, most can`t handle it & go against the grain & opinions of others.
It`s one thing to recognize a "Contrarian Opportunity" ... then quite another to act on it, if you dare.... then a whole other level of intestinal fortitude to put on serious size.... Then.. & only then, if one has the Courage to get that far... Then we enter the highly coveted Brass Balls Territory of staying with the Size during Rips, Squeezes, Noise, Opinions etc.... Whole different elevated level of intensity!
To me the interesting part of ES has moved away from the original diamond, now triangle, to become a range play. Until the cash SPX sets a new higher high above 2787, an abrupt downward takeout to revisit the lows is still possible.
The first down move starting after Jan. 26th shed 300 points in 9 trading days. The second starting after Mar. 9th saw 200 points lost in 10 trading days. Whereas this recent up move starting Mar. 23rd has taken 36 trading days to add 140 points.
Not knowing the odds of a final break up or down, I'm still more drawn to the short trade for its potential to break harder and faster than the long side here. The short trade is also easy to manage, accumulate a short position as it approaches kissing the last high and set a stop somewhere above the 2800 cash level.
The first down move starting after Jan. 26th shed 300 points in 9 trading days. The second starting after Mar. 9th saw 200 points lost in 10 trading days. Whereas this recent up move starting Mar. 23rd has taken 36 trading days to add 140 points.
Not knowing the odds of a final break up or down, I'm still more drawn to the short trade for its potential to break harder and faster than the long side here. The short trade is also easy to manage, accumulate a short position as it approaches kissing the last high and set a stop somewhere above the 2800 cash level.
Yup, The Original DT on Daily has transformed as there was always the possibility of the pennant build out... So no argument there MWT... I think the larger TF`s are are extremely important here as in Weekly / Monthly.... I still see That 2125 as a meaningful Touch level at some point in time.
Currently positioned Flat... which is an actual position... No need to be swinging in the wind right now until the stars align. Get your Scarole in when there is the best of it... signals confirm & PA screams at you to do so... Otherwise, keep the powder dry & insulated from unnecessary Noise & Scar Tissue as one wants to reserve their Fortitude/ BBT- Brass Balls Territory for those times when managing even a large winning position can wear you down quickly... As one has to be Correct 4x on one trade.... Entry- Initial Stop- Trailing Stop- Proper Exits.
-Steve
Currently positioned Flat... which is an actual position... No need to be swinging in the wind right now until the stars align. Get your Scarole in when there is the best of it... signals confirm & PA screams at you to do so... Otherwise, keep the powder dry & insulated from unnecessary Noise & Scar Tissue as one wants to reserve their Fortitude/ BBT- Brass Balls Territory for those times when managing even a large winning position can wear you down quickly... As one has to be Correct 4x on one trade.... Entry- Initial Stop- Trailing Stop- Proper Exits.
-Steve