Inverted head and shoulders on the SPX?

stock_trad3r · Mar 13, 2009

buy the dip

market gonna surge EOD

blueskier · Mar 13, 2009

Quote from manlycure:

See attached 15s chart of ESM9 showing volume breakdown indicator. The horizontal redline marks the cumulative delta level for point #1. At #2, CD level is slightly higher, price bounces back up. At #3, it's about the same, price bounces back up. At #4, CD level is quite higher but price drops right through the line.

If I got this right (see settings), the CD by itself is not indicative of whether the line will hold or not?

The idea is that the longs will attempt to defend and add to their positions... until they don't. CD alone only tells you somethiing about where the key S/R levels are at, and what strength they may have, but you have to watch price action and higher time frame trends to judge whether a particular S/R level will hold.

AMT4SWA · Mar 13, 2009

Quote from Whisky:

AMT4SWA:

Will you be doing a major data merge/offset today or tomorrow due to rollover?. Or have you been doing the tracking/data merging/offsetting of price/deltas all along for the relevant zones?

TIA

Yes....I am tracking both contracts at present. Any new positions I enter going forward I will be entering in the new contract. I flew out of town early yesterday morning, so I have been gone and I just got back to Austin a little while ago......my held positions from 732.00's the other day missed my next target at 710.00 (price traded to 711's) so I had to cover all my remaining 732.00 entries at 717.00 before I left to fly out of town.

Today I will be using any trading into the 750's to look for new sell signals......those who sent PM's yesterday and today I need a few hours to catch up on everything and then I will get to your questions.

stock_trad3r · Mar 13, 2009

don;t overnalyze this market

buy all dips

buy all u can

AMT4SWA · Mar 13, 2009

Quote from manlycure:

See attached 15s chart of ESM9 showing volume breakdown indicator. The horizontal redline marks the cumulative delta level for point #1. At #2, CD level is slightly higher, price bounces back up. At #3, it's about the same, price bounces back up. At #4, CD level is quite higher but price drops right through the line.

If I got this right (see settings), the CD by itself is not indicative of whether the line will hold or not?

Set your chart of the VB to "candlesticks" and what data are you using?

manlycure · Mar 13, 2009

Quote from blueskier:

The idea is that the longs will attempt to defend and add to their positions... until they don't. CD alone only tells you somethiing about where the key S/R levels are at, and what strength they may have, but you have to watch price action and higher time frame trends to judge whether a particular S/R level will hold.

That makes sense, but is this analysis really constrained to key S/R levels or is more of a continuum where longs at any level (and vice versa shorts) would make a decision that's specific to their held position whether to stand ground or bail out? Saying that, I suppose price reversals provide for a "worthy" trade where key S/R levels are, as indicated by CD.

AMT4SWA · Mar 13, 2009

Quote from blueskier:

Seems like rollover will either involve a lot of work (or loss of info), OR it involves very little additional work and I don't understand some very important things about it. Any enlightenment would be appreciated.

Rollover is not a big deal.....we are near cycle highs from the last two days of trading so just starting watching the new contract (watch the 755.00 to 758's zone in the new contract at recent highs). If price goes back to the yearly LOW then watch the 662's to the 666's, and also watch the 704 level as our over/under for the new contract (was 707 on the last contract)....if 704 was to be busted then bulls have lost control of the move off the yearly lows imo.

Whisky · Mar 13, 2009

Quote from stock_trad3r:

don;t overnalyze this market

buy all dips

buy all u can

You get an A for persistence, an A+ for annoyance, and an E for value. Keep it up.

JW

AMT4SWA · Mar 13, 2009

Quote from Whisky:

You get an A for persistence, an A+ for annoyance, and an E for value. Keep it up.

JW

.....and a 0 (zero) for account balance! :eek:

manlycure · Mar 13, 2009

Quote from manlycure:

That makes sense, but is this analysis really constrained to key S/R levels or is more of a continuum where longs at any level (and vice versa shorts) would make a decision that's specific to their held position whether to stand ground or bail out? Saying that, I suppose price reversals provide for a "worthy" trade where key S/R levels are, as indicated by CD.

btw I'm not sure if anyone else (besides AMT) is using Investor/RT, that's one powerful charting software (just learning the ropes now). I get my data from IB, complemented by 5-day historical tick data from DTN Market Access (only $15/mo extra). I believe Investor/RT has the ability to retain long tick histories, but not sure how long is practical.