ES Journal Archive (2006 - 2008)

Status
Not open for further replies.
This morning I was too busy to post, but the 2nd gap rule was in play. First unfilled gap down was on last Wendesday, and we quickly filled this morning's downgap. Well, you guys recognize it by now, don't you??
 
Quote from smilingsynic:

I'd love to see 1271 before 1295 and perhaps even 1320 prints this week on the ES. This is a holiday week and a end of the month markup week. This is also a bullish bias the first few trading days of the month.

IOW, there will at least be an effort before the long weekend.
More...

The issue now is that if 1271 hits, dow would breakdown seriously and that may fuel the downside move even more.

PPT may not let that happen. :)
 
corn down,gold down.,oil receding,we need more of this,this is the only chance of dow rallying,don't think fed has any more weapons, i'm using uso witth indicators to judge oil and last run up wasn't in line with indicators,divergence
 
Quote from ammo:

please go on pek
More...

http://elitetrader.com/vb/showthread.php?s=&threadid=75045&highlight=2nd+gap+rule

A question what an astute reader might ask is:

What is the definition of consequtive days? How many days can be between same direction gaps for the rule still to be effective?

My empirical observation is that more days pass between the gaps the less likely to have a statistical advantage. Up to 3 days it is still pretty good, 4-5 days the odds go down to 50-50%, thus not very good predictive advantage...
 
Status
Not open for further replies.
Back
Top