ES Journal Archive (2006 - 2008)
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JJ
Based on the chart you posted, did you have a tipoff the the gap was not going to fill totally and potentially test the 1508 area? In my view, entry was a bit hi-risk because of that confluence. It looks like your RSI was showing a hint of bullish divergence, but Im not adept using indicators so Im not sure. Not being critical, just discussing. T'was a nice trade.
Osorico
Based on the chart you posted, did you have a tipoff the the gap was not going to fill totally and potentially test the 1508 area? In my view, entry was a bit hi-risk because of that confluence. It looks like your RSI was showing a hint of bullish divergence, but Im not adept using indicators so Im not sure. Not being critical, just discussing. T'was a nice trade.
Osorico
Quote from osorico:
JJ
Based on the chart you posted, did you have a tipoff the the gap was not going to fill totally and potentially test the 1508 area? In my view, entry was a bit hi-risk because of that confluence. It looks like your RSI was showing a hint of bullish divergence, but Im not adept using indicators so Im not sure. Not being critical, just discussing. T'was a nice trade.
Osorico
Not really.
I monitor the other market tells that I listed, not just price action. Market felt moderately bullish, and the selling was just reactive.
JJ
Yeah right...Look folks, there are several ways to handle gaps, none of which require use of the Vix, trin, indices or stock sectors...
One simple approach is to look for price to test the halfway point between the previous day's (RTH) closing high, and the next day's (RTH) opening low.
Previous day's closing high 1513.75 minus next day's opening low 1510.75 = 3 points. Halfway between is 1512.25. This is the "test" that most traders are looking for. A close below signifies weakness, a close above suggests support.
Most of the retail propaganda suggests that there are several types of gaps. Most of that is crap. What matters is how quickly (after the open) the gap is tested and whether price takes out the midpoint and goes on to fill the gap, or "fails" to fill the gap and reverses.
Instead of some vague comment about "tells". Lets look at what really makes sense. Most of the intraday volume on the ES contract happens in the first 90 minutes and the last hour. It is during that time that gaps are tested and either fill or fail to fill and reverse. On the chart below you actually have two (2) tests. The first one at 7:00am PST has more of a chance, simply because of the volume behind it, and because there is usually a news event, or economic report to fuel the move. Since it could not fill the gap at that point, you know the market is strong enough to move up
and you wait....The next "test" comes at 9:25am PST. When it fails again to take out the midpoint, well you can see the obvious long entries and your stops are just below the tails...
So in summary, I hope nobody take it too seriously when it is suggested that you watch a bunch of "tells"....That approach is classic retail and it leads to "analysis paralysis"...Look for the midpoint of the gap to be tested. Look for a close below in order to get a favorable short entry, and for a close above in order to get a favorable long entry. Its a good trade because your stoploss can be set pretty close. If it is going to work it will take off right away and you will have some breathing room.
Yep, that is the most honest thing you have said
and that is code for
"I have no clue, I just took a shot, and it worked out
then when someone asked how I did it, I just talk smack until they get tired of waiting"
Unlike you, I am interested in actually helping the guy who asked you figure it out..you selfish bastard.
Unlike you, I actually know what I am talking about..
Over 3000 posts, and when people ask you a direct question, you can't even explain what the hell you are talking about...
I am loving this.
and that is code for
"I have no clue, I just took a shot, and it worked out
then when someone asked how I did it, I just talk smack until they get tired of waiting"
Unlike you, I am interested in actually helping the guy who asked you figure it out..you selfish bastard.
Unlike you, I actually know what I am talking about..
Over 3000 posts, and when people ask you a direct question, you can't even explain what the hell you are talking about...
I am loving this.
Okay so I have a life and believe me, slapping the village idiot around isn't my idea of a good time.
But I do want to say something more on this subject.
ET members are always asking these questions in one form or another.
"Why do so many traders fail"? "How long does it take to learn to trade profitably"? "How can I find a mentor"?....and on and on...
THIS is why (the posts above)...
You have folks who don't know a damn thing, pretending they have the answers, but they can't tell YOU how its done. Sometimes like with little Jimmy, they don't have a clue. Sometimes they have a method that "works for them" (which means they still can't or won't tell you) and sometimes they know exactly what they are doing but aren't willing to just deliver it up like take-out chinese food to your door.
Newbies, read these posts carefully and THINK. Ask yourself, does this person really know what they are doing. Can they explain what they are doing, or point you in a direction that moves you a little closer to your goal.
Check out "little Jimmy's" comments about using his many "tells" in order to decide whether a gap will be filled or not..True bullshit.
Yet how many newbies will spend countless hours trying to figure out how to use them for this purpose. No wonder it take new traders so long to get past this crap..
Spend your time wisely folks. Think, read between the lines when you ask "little Jimmy" for help...Are you getting any help? or just a line of bull.
Steve
But I do want to say something more on this subject.
ET members are always asking these questions in one form or another.
"Why do so many traders fail"? "How long does it take to learn to trade profitably"? "How can I find a mentor"?....and on and on...
THIS is why (the posts above)...
You have folks who don't know a damn thing, pretending they have the answers, but they can't tell YOU how its done. Sometimes like with little Jimmy, they don't have a clue. Sometimes they have a method that "works for them" (which means they still can't or won't tell you) and sometimes they know exactly what they are doing but aren't willing to just deliver it up like take-out chinese food to your door.
Newbies, read these posts carefully and THINK. Ask yourself, does this person really know what they are doing. Can they explain what they are doing, or point you in a direction that moves you a little closer to your goal.
Check out "little Jimmy's" comments about using his many "tells" in order to decide whether a gap will be filled or not..True bullshit.
Yet how many newbies will spend countless hours trying to figure out how to use them for this purpose. No wonder it take new traders so long to get past this crap..
Spend your time wisely folks. Think, read between the lines when you ask "little Jimmy" for help...Are you getting any help? or just a line of bull.
Steve
ESM7â worked but not for all the markets.- Status