Inverted head and shoulders on the SPX?

Quote from tradingbug:

Thanks for answering all those questions.....interesting stuff.

Right now i have a minor level at 691 and bigger level at the 723 area you mentioned earlier.

I had a hypothetical question. If we do not test and trade at the low 720s area and we go on to test that area a few months later, would the Net delta holders/resistance level still be in play?

thanks
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Oh yes....excellent question. Yes that same zone would still be in play, but I would then focus more on looking to see if there would be enough positive delta per TICK level to at least cover about 50% of the per TICK negative delta it took to create that 3 to 4 point zone initially. It is very interesting how a zone not touched in 45 or 60 days will act the same as zones touched by price maybe only one day apart.

There is also an increase to the order flow that I look for when I see if a zone will hold or fold.......there is a process of price action/order flow that is recognizable imo as a zone holds or gives way......you can almost "feel" it when you have watched enough of them. :)
 
Quote from SoCalTrader619:

Hey AMT,
What type of plane do you fly and where? I'm an Air Traffic Controller at LAX.
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Cool....sent you a PM. How long you been in ATC?
 
Very nice post AMT.

Couple of minor things...

- With respect to who it is that is establishing these positions, I was referring to "commercials" and "large speculators" in the way they are designated in the COT report (i.e., not to retailers). The broader point is that your approach doesn't rely on knowing anything about the identity of the traders, which is a good thing.

- You wrote, "at this point we would be showing there are NET Long Holders potential remaining from this level who bought two days prior". Actually, you'll catch all the longs who took positions during any time during the past two days, as long as they put their stops below the S/R level.

So it doesn't matter who the traders are, nor when they added to their positions. The method will catch them.

This approach gives me a much better appreciation for auction market theory, which I've never found very useful for intraday trading (vs. other approaches) when relying soley on total traded volumes. Thanks again.

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Q. With rollover coming up, how do you deal with that (with respect to cumulative delta tracking and S/R price locations)?
 
shorted the 92s....exited half at 85.5.

Will let the rest run with a stop on the break at 900. Lets see if we can rotate to the lows.

AMT, did you catch the 94s and up?
 
EXCELLENT scalp entry point Tbug.....good one!

Sorry......been working on the plane all weekend and on a good roll. :)

Sold THIN this a.m. 691.50 on up just in case we got a break out of the lower range, and I did not want to be holding many if I needed to bail on initiated buying rate increase. I have covered all 691.50/692.50 at 689.50 and I am holding 693.50/694.50 levels with some 693.50's/694.50's covered at 688.50 and 683.50. At present I have 66% of my 693.50 entries covered and 33% of my 694.50 entries covered....next targets will be at 678.50 and then 673.50......after these levels I would be only holding 33% of the 694.50 entries for any additional downside moves. :)
 
I want to add we do have "layered" resting buy inventory zones in place now.....669's down to 665.75 level with a layered level just above at 674's to 670's. These zones are not real heavy, but they are there......these two levels will be key to watch imo......looks as if someone is starting to buy these lows (sampling). :D
 
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