Inverted head and shoulders on the SPX?

Quote from foreverstudent:

Stock tradr,

I can appreciate your experience with the no. of posts you have made here. Please explain what you based your recommendation on. As a student trader I would appreciate a short analysis of strategy for predicting a bullish sentiment today.

Thanks heaps
More...

that's the funniest shit i've read all week.

i have him on ignore, so i can only imagine what he said. btw, you've got it nailed- post count is the ultimate barometer to use here on ET to flush out who the great traders are.

you've found a great mentor kid.
 
Quote from MrDODGE:

The morning lows were the 52 week lows.
More...
You making a call??? :eek: :D

So Sunday night into Monday AH session will not test the LOD from Today? :) We will see! :cool:
 
Quote from AMT4SWA:

Veggen......

I track both filtered size orders and all orders so I do both......I do focus mainly on all order flow though. I track both support and resistance zones, they are about the same so no difference in tracking. When I sell rallies in this long term downtrend I usually start at or near a resistance zone. Some zones have more resting inventory than others, and the initiated buying or selling activity while at a zone is what I pay attention to realtime as I manage my entries/exits and overall position.
More...

Thanks for your answer AMT4SWA.

Hope you have time for one more :)

I have noticed lately that the agressive buying/selling, when price finds support/resistance, really does not happen at the price "extreme", but rather a few points above/below the pivot point. When you have detected a heavy resistance/support zone, where do you expect price to bounce? The very extreme, or rather the place where agressive buying/selling took place?

If I am right about my observation off the agressive buying (in this example) taking place a few points above the price extreme. If institutions want to protect their resting inventiories, would they not stop price from traveling through their buying levels, and therefore price finding support a few points above the price extreme next time price returns to these resting inventiories?

I have tried showing my thinking on the attached image which you posted a few pages ago. On this picture, where agressive buying took place, where would you expect price to find support and mark as a support "zone" on you chart? At the price extreme, or rather from the levels where the initial agressive buying first started?

Hope you get the time to explain your thinking on this topic.

thanks,
veggen.
 

Attachments

Quote from AMT4SWA:

You making a call??? :eek: :D

So Sunday night into Monday AH session will not test the LOD from Today? :) We will see! :cool:
More...
New LOWS........ES trading at the 725's as I type and no more delta long holders zone......all gone now. We will be trading the AH session in a "suspended in animation" state it seems with no real support below current price.
 
Quote from veggen:

Thanks for your answer AMT4SWA.

Hope you have time for one more :)

I have noticed lately that the agressive buying/selling, when price finds support/resistance, really does not happen at the price "extreme", but rather a few points above/below the pivot point. When you have detected a heavy resistance/support zone, where do you expect price to bounce? The very extreme, or rather the place where agressive buying/selling took place?

Hope you get the time to explain your thinking on this topic.

thanks,
veggen.
More...
You are on the right track with your questions and comments......I am a bit busy this evening but I will cover your questions in depth later tonight. :)
 
Quote from AMT4SWA:

I have next ES target at 722.50 as mentioned before and I now just set my final ES target for 712.50.......next Rydex target I will still cover as ES trades through 708, if we have additional selling today or in the trade days ahead.
More...
722.50 target now filled as the market drifts lower in the AH session, with no physical held inventory support below us at this time.
 
Quote from veggen:

Thanks for your answer AMT4SWA.

Hope you have time for one more :)

I have noticed lately that the agressive buying/selling, when price finds support/resistance, really does not happen at the price "extreme", but rather a few points above/below the pivot point. When you have detected a heavy resistance/support zone, where do you expect price to bounce? The very extreme, or rather the place where agressive buying/selling took place?
***************************************************************
***Many times you will find the delta flip to a net positive (or negative) only 1 to 4 ticks from the exact extreme pivot price level. From the example you had included, the bottom of that newly formed delta NET Long Holders zone would be the tick level with your very first marked blue triangle..... http://www.elitetrader.com/vb/attachment.php?s=&postid=2326883
***************************************************************
If I am right about my observation off the agressive buying (in this example) taking place a few points above the price extreme. If institutions want to protect their resting inventiories, would they not stop price from traveling through their buying levels, and therefore price finding support a few points above the price extreme next time price returns to these resting inventiories?
***************************************************************
***Yes they would attempt to "layer in" a new level of buy support no lower in price than the top of the delta zone which is now being defended.
***************************************************************
I have tried showing my thinking on the attached image which you posted a few pages ago. On this picture, where agressive buying took place, where would you expect price to find support and mark as a support "zone" on you chart? At the price extreme, or rather from the levels where the initial agressive buying first started?
***************************************************************
***In your example the delta zone starts three ticks from the extreme low and then runs up about three points....so there is roughly a three point zone of statistically significant delta NET LONG initiated positions (newly created NET Long held inventory). Another point to remember, the lowest held tick level of this newly initiated LONG inventory will have a "stops" zone that runs down about 2 points below the bottom tick level of the delta NET Long Holders zone. You have the delta NET Long zone of about 3 points thickness and then their "stops" down another 2 points below that.
***************************************************************

Hope you get the time to explain your thinking on this topic.

thanks,
veggen.
More...
Hope this helps make more sense for you and your chart example drawings/indications are right on the money! :) Also, to give credit where due......the chart example I had shown before is used by the ioamt.com group.....I have built my own and it looks similar in design/info. :)
 
Quote from AMT4SWA:

Hope this helps make more sense for you and your chart example drawings/indications are right on the money! :) Also, to give credit where due......the chart example I had shown before is used by the ioamt.com group.....I have built my own and it looks similar in design/info. :)
More...

Thank you for taking the time to respond to Veggen's questions. The answers are very helpful to help me understand how support and resistance work in the markets.

I was curious as to what kind of situations might cause an AMT based entry signal to fail. For instance, I might imagine that perhaps net delta may change temporarily to the long side but later become overwhelmed by sellers before meeting profit targets.

Would you mind describing a recent failed entry signal that you traded?

Thank you for sharing,

Stone
 
You must log in or register to reply here.
Back
Top