Inventory Grab Alert 4/30/09!
- Thread starter AMT4SWA
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There's a lot of $$$ in the above succinctly put paragraph, not all of which can be coded in C# unfortunately
I have a question regarding position size building. Early in the thread (5/3) you've stated:
"You do not have to have a delta divergence every time a known resistance area (like the 887.00 area) is challenged again by price before you sell that area. While attempting to SELL a high retest, you would LOVE to see a negative divergence in the cumulative delta at that time (higher probability set ups).......you are just not going to ALWAYS get it."
My question is - does having a negative CDV in place at the initiated sell point (i.e. higher probability setup) have direct impact on your willingness to back up the truck on the short position at that point? If the negative CDV is not present, I'm guessing you still may take a short position but at a conservative size and quicker to recycle it to a higher entry in case price doesn't react (to the short side) fast enough to hit the first target?
With today's action I was able to get all targets filled at the 902's.......my next set of targets at the 882's are sitting just above our near term major support zone of 876's to 872.75Quote from AMT4SWA:
OK.....that is it for me today.....back to the vacation activities.
Now lets go get the 922's...............912's...................902's...................882's.................etc.
This is a very key zone imo and the bulls are really going to have to hold this level EARLY if challenged. This delta zone could breakthrough very fast if challenged on a second or third test......we have already traded down to this area a few times the past weeks so this will be very interesting. :eek: Thursday and Friday may be a LOT of fun......great potential for some strong volatility.
Quote from AMT4SWA:
You are ABSOLUTELY on target......I am much more aggressive when a divergence is in place.
The visual metaphor I have for CDV at a zone is a loaded spring that ricochets your position(s) to the opposite zone (the other side of the swing). The more loaded the spring, the more weight (position size) you can mount on it?
The less obvious part is how much of advance notice you get before the reaction off the zone occurs. You have to establish positions within a relatively narrow area as order flow is already breathing down your neck. Sometimes there's a second chance, sometimes there isn't.
Quote from manlycure:
The visual metaphor I have for CDV at a zone is a loaded spring that ricochets your position(s) to the opposite zone (the other side of the swing). The more loaded the spring, the more weight (position size) you can mount on it?
The less obvious part is how much of advance notice you get before the reaction off the zone occurs. You have to establish positions within a relatively narrow area as order flow is already breathing down your neck. Sometimes there's a second chance, sometimes there isn't.
I view negative CDV divergences are more of the Desperate Car Dealer w/ full back lot ...
As for the spring, there's a different setup in which I apply the "Spring" metaphor to...
At the end of the day, they're pretty much the same end result if they are going to work.
Your line in the sand... somewhere near your entry, must hold... and everyone else has to bail so you can make some money.
Quote from AMT4SWA:
With today's action I was able to get all targets filled at the 902's.......my next set of targets at the 882's are sitting just above our near term major support zone of 876's to 872.75
Thursday and Friday may be a LOT of fun......great potential for some strong volatility.
Market still holding that 900 area. I want that to get taken out and the 875 on the same day
Hey...nothing wrong with a little hope.
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