ES Journal Archive (2006 - 2008)

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you can see them on the 240 minute chart. Most cyclical tops or bottoms are marked by these. They are basically spikes in price that get sold into or bought into, and price gets rejected. Usually after a series of these, the price moves away from these levels.

obviously its not a sure thing, but if you look at the charts you can see the probability aspect is pretty good. I will try to find some charts that show them.

edit: there is a divergence going on in the utility index, I'm going to keep an eye on this. In the future it may be used as rationalization for a market selloff. Even though the market rallied last week, the utility index didnt participate to a great degree.

And talking heads are touting, equities can rise in a rising rate environment. Yes, they can but the risk reward isn't worth it.
 
tails, so if you do see these tails psychologically, a novice would have a hard time entering the trade, since he will wait for that tail to sell at a higher price, but usually before that the price starts collapsing, and a trade is never entered into, since now he will be thinking to himself wow.. i could have sold it a few points higher, why would I sell now...

but a more seasoned trader, will look at it as confirmation that institutions have set barriers in place intraday or the agenda of it, and will sell as soon as a tail prints with price action/sentiment in his favor.
 
heres the cash, and why its probably best to stayout of the market. The symmetry is uncanny. I would wait for the chart pattern to playout and wait till summer is over, or till we escape out of this pattern.
 

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tails, so if you do see these tails psychologically, a novice would have a hard time entering the trade, since he will wait for that tail to sell at a higher price, but usually before that the price starts collapsing, and a trade is never entered into, since now he will be thinking to himself wow.. i could have sold it a few points higher, why would I sell now...

but a more seasoned trader, will look at it as confirmation that institutions have set barriers in place intraday or the agenda of it, and will sell as soon as a tail prints with price action/sentiment in his favor.
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HIKKAKE
 
spectre - thanks for sharing. One question - can you post some of the same charts in a candlestick setup? I'd be curious to see how these setups look with candles since I am a candle trader.
 
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