Its all about "tests"
- Thread starter steve46
- Start date
The stop running did take place but on reduced volume of a little better than 4K shares per candle.
What is happening is that periodically the market runs out of bullets. At this price point, the main players are the captive audiences in the pits, the screen traders, programs and retail
On the issue of volume, there are two part to the evaluation of it. One is the absolute number of contracts executed during a bar or candle, the other is the size of the bar or candle, or how much "size" is generated by a specific volume. This is called volume spread analysis and it probably deserves its own thread.
What is happening is that periodically the market runs out of bullets. At this price point, the main players are the captive audiences in the pits, the screen traders, programs and retail
On the issue of volume, there are two part to the evaluation of it. One is the absolute number of contracts executed during a bar or candle, the other is the size of the bar or candle, or how much "size" is generated by a specific volume. This is called volume spread analysis and it probably deserves its own thread.
I observe that this market has rallied several times and every time that rally has been followed by a failure move.
As I have mentioned a number of times. I intend to play it that way generally until the market makes me pay for it.
So far over a period of weeks, it has paid to play that way.
As is characteristic, we have a pullback at the Midline of the LRC
After that I am looking for the same behavior as before. A close above the midline of the LRC on volume of say 10,000 to 12,000 contracts.
Steve
As I have mentioned a number of times. I intend to play it that way generally until the market makes me pay for it.
So far over a period of weeks, it has paid to play that way.
As is characteristic, we have a pullback at the Midline of the LRC
After that I am looking for the same behavior as before. A close above the midline of the LRC on volume of say 10,000 to 12,000 contracts.
Steve
Yes that is why one has to learn what tests are important
Attached is a chart of the current action showing the move to take out the midline of the LRC on volume of 14,295 contracts.
On the candle following the move through the midline, price tests the today's high, followed by the predictable pullback. Then it takes out today's high on volume of 27,000 contracts.
Attached is a chart of the current action showing the move to take out the midline of the LRC on volume of 14,295 contracts.
On the candle following the move through the midline, price tests the today's high, followed by the predictable pullback. Then it takes out today's high on volume of 27,000 contracts.
Here is a follow up chart with pivots in place
One can see that there are a number of tools that can be used to help look at the concept of tests. Pivots are useful in that there are a number of traders who use them and price obviously reacts in the proximity of these "lines in the sand".
One can see that there are a number of tools that can be used to help look at the concept of tests. Pivots are useful in that there are a number of traders who use them and price obviously reacts in the proximity of these "lines in the sand".