ES Journal Archive (2006 - 2008)

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....this 2 min bull divergence may or may not be what b1s2 claims to have based his daytrade entry upon.... 2 min
.... signal is in black
..... coincides with false breakout of 15 flag formation....
Quote from vertigo3:

Thanks for the chart
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Quote from Buy1Sell2:

Gap analysis adds one more very subjective variable that can be wrong. Gap analysis is unnecessary in trading and should be discarded. :)
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Do you have ANY evidence for this assertion?

I am glad you started this thread, but sometimes the rigidity of your thinking makes me shake my head.

Gaps don't have to be filled to be exploitable in trading. Does something have to ALWAYS be right to be worthwhile?

Everything in trading not only "can be wrong" but often IS wrong. Traders deal with probabilities, not certainties. Those who want strategies that cannot be wrong are in the wrong business.

Just because gap analysis is unnecessary in YOUR trading does not mean that it does not have value for others.

For those who are daytraders, gaps generally lead to increased volume and, hence, volatility. If there is a gap, there is usually a reason, and that reason may require repricing of equities. The bigger the reason (the gap), the larger the participation, and participation equals volume and volatility.

Trend-based strategies are effective on those days. When there are no gaps from the previous close, countertrend strategies tend to work better for daytrading. This effect is quantifiable and is true across all markets, including overseas.

The mind is like a parachute: it only works well when it is open! :-)
 
I don't really understand Buy1Sell2 thinking at all again - to me gaps give me some early warning and clues on what the intentions of the market players are.

They don't always have to be right but like Smilingsync stated its all about odds. Gaps give me a heads up on wether my odds increase to the long side or short side.
 
Quote from Buy1Sell2:

Long 1537.75 Full daytrade position on. No hard stop.


Turning off computer and walking away. Talk to everyone again soon. :)
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Buy1Sell2,

Thank you for your trade AND why did you make it? What was your premise? I know your bias is long and why go in at 1537.75?

DMartin
 
Quote from Buy1Sell2:

Gaps don't have to be filled ---ever.
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True.

Quote from Buy1Sell2:
Gap analysis is unnecessary in trading and should be discarded. :)
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All non-macro-fundamental analysis is unnecessary in trading and should be discarded. It's true... If you can't accept drawdown within the macro price range while the macro expectation remains intact you are overleveraged or overtrading.

Osorico
 
Quote from Buy1Sell2:

Gaps don't have to be filled ---ever. Best to find a bias and trade a fresh signal in the direction of that bias. Example: If the bias is long and price fills a gap to the downside, you will most likely get a fresh long signal at some point. Gap analysis adds one more very subjective variable that can be wrong. Gap analysis is unnecessary in trading and should be discarded. :) [/QUOTe

Do you want to provide research to support your claim? Your statement is contradictory at best.

Gap analysis is unnecessary for who, you?

What is humorous, if you were to read what you wrote, is that you included a form of 'gap analysis' in your statement.

LOL, gotta luv ET
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I don't know about 'no' hard stop. At least have a disaster stop in place.

Once we stop oscillating between these tight pivots this morning, the range is yesterday's high and Tuesday's true top. They have not given any breathing room to shorts trapped above 1530.

Everything I see is pointing to the 1555 test today. Closing price right on utmost resistance.
 
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