Question for Grob/Hershey...
- Thread starter makosgu
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lol, really impressive Easy. Did you just feel like doing a little more active trading today and picked out like 15 points for fun? 
Dan, I agree with you, but I don´t think there´s a single trader who makes money with a indicator-dummie-set-up-edge-system who is not good at reading price-volume in one way or the other.
Dan, I agree with you, but I don´t think there´s a single trader who makes money with a indicator-dummie-set-up-edge-system who is not good at reading price-volume in one way or the other.
The second trade was more typical. Good ones like that first one only come along two or three times a month. The only way I stay in that long is if there are no significant pullbacks. I wish I could have seen that rebound coming. There was a pullback from the high around 2:25 that was good for another six points with no pullbacks but I did not take it.
On the paltalk tapes Jack talks a lot about stocks, volume in different markets and that kind of general stuff in the beginning of the days. It´s a bit difficult to follow for me. Has he written somewhere more specifically what stocks/markets he look at and how to get a general feeling for how the day will develop?
Have you seen his "big post" doc? http://www.elitetrader.com/vb/attachment.php?s=&postid=751485
Also Spydertrader's journal is a great resource and he has links to some older threads in which Jack discussed trading equities.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=38777
http://www.elitetrader.com/vb/showthread.php?s=&threadid=38777
I thought it would be easier to post about the rally attempt analysis here. If anyone objects, I would be happy to email the moderator to move it to another thread.
I picked up the book 24 Essential Lessons for the Investment Success by WJO. I found it much easier to read than the prior book I had read especially in terms of the rally attempt analysis. From Lesson 14, WJO sais that at some point on the way down there is an attempted rally. Day one of the rally is when the close is higher than the prior dayâs close. None of the following days can break day oneâs close. The next part of the sequence is a follow through day on dayâs 4-7. Follow through dayâs should be 1% + from the prior days close with an increase in volume.
It looks to me as if the INDU had a follow through day yesterday on higher volume from the prior day. Day 1 is 2/8. I am not positive if my charts are correct but it has less ES volume yesterday compared to the day before. Itâs day 1 was also 2/08. So since it lacked the volume, it did not confirm the really eventhough it had the price % gain.
WJO also sais that the rally attempt fails about 20% of the time. I am leaning toward this as I have us hitting the right side of our ES down channel which we just retraced on decreasing volume.
So in summation, even though rally confirmation was yesterday, I have us sitting at the right side of the ES down channel. Which one takes precedence.
Hope this was helpful. There is a chapter on distribution for recognizing market tops. I will have to post that part too.
I picked up the book 24 Essential Lessons for the Investment Success by WJO. I found it much easier to read than the prior book I had read especially in terms of the rally attempt analysis. From Lesson 14, WJO sais that at some point on the way down there is an attempted rally. Day one of the rally is when the close is higher than the prior dayâs close. None of the following days can break day oneâs close. The next part of the sequence is a follow through day on dayâs 4-7. Follow through dayâs should be 1% + from the prior days close with an increase in volume.
It looks to me as if the INDU had a follow through day yesterday on higher volume from the prior day. Day 1 is 2/8. I am not positive if my charts are correct but it has less ES volume yesterday compared to the day before. Itâs day 1 was also 2/08. So since it lacked the volume, it did not confirm the really eventhough it had the price % gain.
WJO also sais that the rally attempt fails about 20% of the time. I am leaning toward this as I have us hitting the right side of our ES down channel which we just retraced on decreasing volume.
So in summation, even though rally confirmation was yesterday, I have us sitting at the right side of the ES down channel. Which one takes precedence.
Hope this was helpful. There is a chapter on distribution for recognizing market tops. I will have to post that part too.
I should have been more specific. The ES down channel is the LT channel and can be seen on the daily timeframe.
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