Inverted head and shoulders on the SPX?

Quote from stock_trad3r:

we're surging ..150 points of losses recovered

these intra day patterns are very predictable
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Thats right....keep SELLING those fake out rallies for the WIN! :cool:

Sold 776.00 on up today (started selling just above yesterdays high) on the last rally. I have hit targets at 771.00.....766.00......and 761.00 so far. I have already covered all my 776.00 entries with the trade through 761's and 66% of my 777.50 entries.....still holding all my 779.00 entries with a first target set at 759.00 (where I will also cover my last 777.50 entries). My next targets will be set at 754.00 and then 749.00......once 749.00 is filled I will be holding the remaining 50% of my 779.00 entries which I will cover with any trading below the yearly low. :)
 
Quote from fseitun:

AMT4SWA

Impressive analysis indeed. I have one question if you don't mind asking:

regardless of whatever tools you use that can tell you how much inventory is left at 743-740 support, I assume you mean resting buy orders right? What about non-resting buy orders though?

What about those potential buyers that start hitting the bid as ES approaches support?

Wouldn't you think that real buyers with big pockets would like to hide their orders?

I am not sure I understood you correctly, this is why I am asking the above questions. I may be utterly out of context.

Thanks.
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The resting inventory I am talking about is orders that have ALREADY traded.....they are positions being HELD from the zones I mention. The resting inventory was INITIATED with trades transacted in the delta zones where there was a significant NET bias (NET Long or Short) to the order flow that transpired.

I also watch this order flow at all times "realtime" to always see who has control of the order flow AS IT TRADES.....this is the cumulative delta I watch at all times. The other day as the market traded down to the 740 area, the order flow flipped from a negative bias to a positive bias "realtime" (this is measured by watching intra-bar or cumulative delta).......this was the exact point BUYERS had taken control of the auction process and a rally was started :)

Hope that clears things up for you. :)
 
AMT, so I reviewed the vids and came up with this. You keep track of volume "inventories" using a combination of extreme delta volume readings and support/resistance lines. On a realtime basis you make your entry and exit decisions according to the acumulative delta graph. I desected your software which I assume overlays the security your trading and makes your calculations for you. I like it because you are keeping track of price and volume over a time period and in real time simultaneously. I find it difficult to give enough weight to volume in my own trading style.
 
You seem to be on point other than I determine the support and resistance areas AFTER I see a delta zone form.

For instance, as price bounced off the 740 area the other day I then determined what tick levels made up the delta zone of NET LONG holders (which created the price reversal as BUYERS took back control of price from the sellers). This was the zone of 740 to 743's where there was a BIAS to the order flow in favor of the BUYERS.....that zone was NET POSITIVE as measured by the delta at the reversal. BUYERS were very active in the order flow 740 to 743's hitting the bid with market orders, thus creating a small zone of very positive delta. :)
 
Quote from AMT4SWA:

BUYERS were very active in the order flow 740 to 743's hitting the bid with market orders, thus creating a small zone of very positive delta. :)
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I was just wondering if you can elaborate how the Buyers were active while hitting the bid with market orders. It seems to me the sellers would be active if they are hitting the bid and the buyers would have resting limit orders on the bid.....do I have it backwards?

selling the 74s this week has been a great trade so far looking for a rotation back down.
 
Quote from tradingbug:

I was just wondering if you can elaborate how the Buyers were active while hitting the bid with market orders. It seems to me the sellers would be active if they are hitting the bid and the buyers would have resting limit orders on the bid.....do I have it backwards?

selling the 74s this week has been a great trade so far looking for a rotation back down.
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Just think of it this way......when looking at your DOM and you place a BUY order @ market you are "clicking" on the bid side of the price ladder.....I call that hitting the bid. :)

Sold additional 777.50-779.00 this morning with this rally.....first targets at 772.50.....next target at 767.50. I will determine additional price targets latter according to the price action. :)
 
i think you made a mistake =D

when you buy with market order, you're buying the offers on the offer side... also known as lifting offer....

when you market sell, you're hitting the bid. taking out the bid price (quantity of shares)

i'm guessing you used to tape read NYSE stocks? :D
 
Quote from chiefraven:

i think you made a mistake =D

when you buy with market order, you're buying the offers on the offer side... also known as lifting offer....

when you market sell, you're hitting the bid. taking out the bid price (quantity of shares)

i'm guessing you used to tape read NYSE stocks? :D
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hitting the bid (selling pressure) and lifting the offer (buying demand. that's the way I've always understood it... but then again, I certainly don't trade anywhere near as well as AMT---so maybe I have it wrong.

:confused:
 
What you guys are saying is correct but I am talking to Tbug about the Auction Market Theory process....when you pay the asking price in an auction with your bid I just called that hitting the bid or entering your buy bids with whatever the price offered at the time is.....you just want in now and are not concerned about what price you pay. When the market is "bid up" in a delta zone we have a positive delta that has the buyers taking control of price away from the sellers.....thus price rallies.
 
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