With the exception of a couple little pokes here and there, the NQ stayed in a 10 point range. the overnight high and low. 25 and 35 with 30 being the midline. Three lines. I bet most of us had the same lines drawn this morning. The open saw us test the lower line, reject it, and shoot up to the upper line (even exceeded it) without so much as a hesitation at the midline. Observing this, it's hard to stay unbiased and try as I may, I could not help predicting that price was going to pullback a bit and make a new high. Than at 9:53, just when I was expecting a resumption of the move up, I saw the struggle. Watching the DOM I saw the offer 3134.75- no takers. It would not print the .75. At least six times in three minutes the sellers kept trying to sell at 3134.75 and nobody would buy. There finally was a print at .75. One contract. Price quickly pulled back to the mid line and tried again for the 3135 area. Three more times they tried, and at 10:30 there was no one taking the offer at this level. I didn't think, I knew this was the high for the day. A couple minutes later and we were below the mid line attempting to hit our lower area of 3125. And then, at 10:38, I saw the same thing. Price was banging on the mid line and several times the offer was 3130.25 and NO takers. Again at 10:40. The chart only shows that we stopped there. It does not show that it actually tried to get above. Someone was willing to sell it, but no one willing to buy. I quit watching soon after to soak in some sun and seawater.
So, why do I feel this is important? Why is Fortydraws trading so well? He's reading the tape. And he knows enough, (I hope) to sit out the hand if he cannot read the tape. Like yesterday. Maybe today.
You see, the science of price action is simple. DB can show it to even a simple minded Horseshoer like me. It's exact. Hinge, Mid line, trends, breakouts, etc., etc.,etc. Draw straight lines and wait for price to do it's thing.
But there is an art to reading price as it reacts to these levels.
If you look at the chart from 9:52-10:29, the chart says we are making higher highs. But the tape was telling you that there was no gas in the tank for the uptrend.
It might be possible to trade by just looking at the lines. Buy here, sell here. Like a scientist. It might also be possible to trade without a chart. Just looking at the ebb and flow of price. Like an artist.
Seems to me now, it might be best to be good at both.
Sorry to ramble , I'll shut up now. I'll be observing again tomorrow, Most likely for a while longer to let this sink in.
So, why do I feel this is important? Why is Fortydraws trading so well? He's reading the tape. And he knows enough, (I hope) to sit out the hand if he cannot read the tape. Like yesterday. Maybe today.
You see, the science of price action is simple. DB can show it to even a simple minded Horseshoer like me. It's exact. Hinge, Mid line, trends, breakouts, etc., etc.,etc. Draw straight lines and wait for price to do it's thing.
But there is an art to reading price as it reacts to these levels.
If you look at the chart from 9:52-10:29, the chart says we are making higher highs. But the tape was telling you that there was no gas in the tank for the uptrend.
It might be possible to trade by just looking at the lines. Buy here, sell here. Like a scientist. It might also be possible to trade without a chart. Just looking at the ebb and flow of price. Like an artist.
Seems to me now, it might be best to be good at both.
Sorry to ramble , I'll shut up now. I'll be observing again tomorrow, Most likely for a while longer to let this sink in.
