I don't trade only daily bars, but that's just what was currently in question. Some have said this inverted head and shoulders was non existent, I just wanted to know why.
Inverted head and shoulders on the SPX?
- Thread starter fantastic4
- Start date
the chart I posted was the ES mar 09 futures, so, technically not SPX (which does not trade 24hours).
I suppose a case can be made for a wide (time wise) IHS in the daily cash, (with Nov 20 & 21 head, October Left Shoulder, current price action forming a Right shoulder, but SPX probably has to dip to print 801.20 or slightly lower before a leg up to 900-918 and then the beginning of the search for year's lows someplace well below 740.
subject to change without notice.
"Markets are never wrong; opinions are." -J.L. Livermore
I suppose a case can be made for a wide (time wise) IHS in the daily cash, (with Nov 20 & 21 head, October Left Shoulder, current price action forming a Right shoulder, but SPX probably has to dip to print 801.20 or slightly lower before a leg up to 900-918 and then the beginning of the search for year's lows someplace well below 740.
subject to change without notice.
"Markets are never wrong; opinions are." -J.L. Livermore
I wouldn't say it was non-existent, but imo, it was questionable at best. If anything, it was a complex IHS..........iow, very iffy. Patterns you want to trade should be obvious, not iffy.
In the opening post, the guy on the video seemed almost "Cramerish" to me particularly with his whole "insider buying" pitch. All the "insiders" were doing (which is typical) is wrongfully buying all the way down - something he should have amplified, but ignored completely.
If you look for them, you'll see IHS and HS patterns all over the place. Currently, there's a pretty obvious one on the 60 min.
Well, also I don't think the inverted head and shoulders was anything but a tiny bit of the video, that was simply my question to get feedback on it. I would have personally have a very hard time comparing the maker of the video to cramer. The video is not commited one way or the other, and infact I think that's the point. Just to show possible bullish and bearish set ups, that way we know when one is taking place.
If I were bullish I would like to know that the captain of the stock has more to lose than I do.
If I were bullish I would like to know that the captain of the stock has more to lose than I do.
Quote from AMT4SWA:
Actually you are not in understanding of what I am talking about......the trading and BOUNCES off the ZONE OF NET SHORT HOLDERS at the 863's to 865's (and also their stops up to the 867's) is a resistance area.
Price will NOT trade through that zone of SHORT positions held (area of "NET" SHORT HOLDERS) from the last time price had traded in that area, until those net short holders go neutral. If you noticed.....price bounced right off that zone I mentioned several times before the net short holders were neutralized and THEN price finally ran up through that zone to new highs. This is called an "inventory grab" as commercials will move price to SIZE resting (which are the ZONES of NET HOLDERS).
These NET HOLDERS ZONES act as true support or resistance areas day after day!
863 was a good sell, i looked for buyers basically dropping right out and sellers peaking at a cummulative contract level, so i'm looking for contracts to start being sold off at higher levels to buy in after peak buying volume, if i don't get this i keep on selling into the buying, so i'm looking 820 for next week, but it's really not up to me, i let the rest of the market decide then follow suit.
Good trading.
These types of patterns can be subjective, or IOW open to interpretation/perception.
Personally I think there are too many swings, albeit small ones, between what you have marked as the head and the right shoulder. Plus if we're in the right shoulder now the market should be working higher. It's been down two days in a row. In addition the overall patter seems to be too wide or broad.
If you're interested in these types of patterns you may want to take a look at Thomas N. Bulkowski's books on the subject.
AMT4SWA - You've shown an impressive management of the market the last few days. At first I was skeptical because it seemed you just averaged up as short trades went against you, but then I realized you're going for larger swings in the market, utilizing scaling in and out methods.
What tool/service do you use to measure the net long/short holders, and inventory levels in various zones?
Thanks.
We're still in a trading range between 800-900 on the sp00z and 8000-9000 on the dow.