Learning to read Price Action with P&F Charting

[dentist007]

nas 100 already at the major res area

 

[dentist007]

a better veiw.we are 1 box away from major es on the nas100 ie i3-4%
so showing the same characteristics as the s500

 

[ammo]

http://stockcharts.com/charts/candleglance.php?$BPNYA,$BPCOMPQ,$BPOEX,$BPNDX,$BPSPX,$BPINDU,$BPDISC,$BPSTAP,$BPENER,$BPFINA|E this page shows the oex,dow and naz with upside room and the spx hitting resistance

 

[mdszj]

Quote from dentist007:

sds. do you have any confirmation that it is reversing that last downtrend.?
if so.post the chart

Dentist - if you were asking me about the SDS trade, my answer is No I do not have any confirmation that it is reversing. My reasoning is that if you were to get in and set stops at the levels I mentioned, seems like a relatively low risk trade.

What do you think?

 

[dentist007]

it probably is a low risk trade,as you are at a major resistance point on the s&p 500.it will be even more reliable if you confirm it with a reversal pattern.
this is well presented in holygrail" s synopsis
you could use other confirming signals on a candle chart..such as oscillator divergence and or looking at dmi/wait for the range to get smaller ie the directional movement must be getting smaller.there should be a reasonably definite area of support/res that keeps the price in check
hope this helps
please do youre own analysis.this is my opinion only

 

[mdszj]

agreed regarding going thru Holygrail's thread. I am on about page 30, so it will be slow going with >200 pages. Good idea about checking for oscillator divergence, will check for this.

 

[dentist007]

what is the next move.?
s&p 500.
12 point box size.by 3 reversal
close data

 

[flyinglead]

are we at the bottom?

 

[dentist007]

could be.might be difficult to break above $62 area.that seems to be keeping the price in check

 

[dentist007]

eurodollar