Inverted head and shoulders on the SPX?

[tradingbug]

Quote from AMT4SWA:

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.

Thanks for the explanation.....thats what I had thought .

 

[AMT4SWA]

OK.....767.50 target I took a fill out at 768.00 and have set my next scale out targets at 762.00 and then 757.50 for now.

 

[Gordon G.]

Quote from AMT4SWA:

The resting inventory I am talking about is orders that have ALREADY traded.....they are positions being HELD from the zones I mention.

Hi AMT,

that's the part I do not understand ... what makes you think that aggressive buyers do not take profit higher before price returns back down to the price at which they previously bought?
I mean, many could liquidate positions on the way up ...

Thank you for your interesting posts.

 

[AMT4SWA]

Quote from Gordon G.:

Hi AMT,

that's the part I do not understand ... what makes you think that aggressive buyers do not take profit higher before price returns back down to the price at which they previously bought?
I mean, many could liquidate positions on the way up ...

Thank you for your interesting posts.

If the delta remains positive during the bounce in price out of a delta zone (which you can watch realtime), then you are just fine. After the bounce, now you also have a known measurement of NET long inventory from that zone.....so if price returns into the zone you can see if that quantified inventory remains (holds) or goes neutral (held Longs bail). You do have a perfect view with the delta as to what this inventory is doing realtime....no lag.

If the inventory you recorded in the new delta zone (lets say 15,000 contracts NET LONG) holds and never goes to zero/neutral, you will see that price will not go through that zone if at a later time price returns to that area and challenges support there.....that simple.


BTW, my 762.00 targets were filled......next target set at 757.50

 

[foreverstudent]

Quote from AMT4SWA:

If the delta remains positive during the bounce in price out of a delta zone (which you can watch realtime), then you are just fine. After the bounce, now you also have a known measurement of NET long inventory from that zone.....so if price returns into the zone you can see if that quantified inventory remains (holds) or goes neutral (held Longs bail). You do have a perfect view with the delta as to what this inventory is doing realtime....no lag.

If the inventory you recorded in the new delta zone (lets say 15,000 contracts NET LONG) holds and never goes to zero/neutral, you will see that price will not go through that zone if at a later time price returns to that area and challenges support there.....that simple.

AMT,

Safe to say that if the Delta Zone doesn't hold(goes neg in realtime) that the price action will pass through to the next Delta Zone. Likewise, if the Delta Zone holds(realtime Delta never goes to zero/neutral and remains pos) a bounce will occur(support) and you next call will be next Delta Zone higher? Do you take into acct other market internals and time frames or just Delta accumulations(buyer and seller inventories) on different time frames?

This is really cool and thanks for your patience.

 

[paul_alan]

you ever have a losing trade ATM, or not anymore?

 

[AMT4SWA]

Quote from paul_alan:

you ever have a losing trade ATM, or not anymore?

I have some losing trades when initiated once in a while (usually when odd news hits) but I am very profitable for the most part.

I have hit targets now at 757.50 and my next targets set at 752.50 and then 742.50. With a fill of targets at 742.50 I will have 50% of my 779.00 entries remaining for any additional downside move to new yearly lows.

 

[AMT4SWA]

Quote from foreverstudent:

AMT,

Safe to say that if the Delta Zone doesn't hold(goes neg in realtime) that the price action will pass through to the next Delta Zone. Likewise, if the Delta Zone holds(realtime Delta never goes to zero/neutral and remains pos) a bounce will occur(support) and you next call will be next Delta Zone higher? Do you take into acct other market internals and time frames or just Delta accumulations(buyer and seller inventories) on different time frames?

This is really cool and thanks for your patience.

Yes....you got it. I do watch the TICK to look for buy or sell programs when price is back in a delta zone or creating a new one.......that is about it for the most part.

 

[AMT4SWA]

Quote from AMT4SWA:

I have hit targets now at 757.50 and my next targets set at 752.50 and then 742.50. With a fill of targets at 742.50 I will have 50% of my 779.00 entries remaining for any additional downside move to new yearly lows.

Target at 752.50 filled..........will stand by for any additional selling with next target down at 742.50 (right in the 743's to 740.00 delta NET Long holders zone). The yearly low will be in full test at that point......new leg down potential is ahead. :eek:

 

[tbone4]

AMT,

When the net long delta zone was created in the 740-743 range, I don't think you traded from the long side at all knowing that you had that support beneath you, did you? How did you know to keep trading from the short side? Will you only trade from the long side once the delta zone has been tested and holds?

Thank you for the explanations.