The action at 0640 looks quite flat. I don't think I would have seen this as LOLR being down because while there was some R at 3227.25, the fall to 3225.75 represented too small a move to say that the LOLR was down. I would have called it neutral. I can see a plausible short at 0700 but not at 0640.
Son of If You Can Draw a Straight Line . . .
- Thread starter dbphoenix
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The action at 0640 looks quite flat. I don't think I would have seen this as LOLR being down because while there was some R at 3227.25, the fall to 3225.75 represented too small a move to say that the LOLR was down. I would have called it neutral. I can see a plausible short at 0700 but not at 0640.
Something else I've noticed while observing price, is the way sellers and buyers push price through the same potential support/resistance.
In this example there are clues to their relative strengths. I noticed while watching it real time and sure enough buyers pushed price back up.
This was also at the mi-point of the up-move, so maybe this added pressure to sellers.
Thanks
I wouldn't call it potential support/resistance once price is unable to halt around the level. If price stops and starts to turn then the area could be classified as support/resistance and if price doesn't, then the potential s/r never materialized into a real support/resistance. I haven't gone back in time to check whether the reason for potential s/r is valid. For the purpose of illustration I believe it won't be necessary.
The maximum trade/mid area has by definition most trades and as a result the most bobbing and weaving. I have tried to put a green line where that might be. Admittedly, this is not a clear cut case of clearly defined extremes or mid so we'll have to make do with what we've got.
Gringo
Quote from Gringo:
I wouldn't call it potential support/resistance once price is unable to halt around the level. If price stops and starts to turn then the area could be classified as support/resistance and if price doesn't, then the potential s/r never materialized into a real support/resistance. I haven't gone back in time to check whether the reason for potential s/r is valid. For the purpose of illustration I believe it won't be necessary.
The maximum trade/mid area has by definition most trades and as a result the most bobbing and weaving. I have tried to put a green line where that might be. Admittedly, this is not a clear cut case of clearly defined extremes or mid so we'll have to make do with what we've got.
Gringo
Thanks Gringo, You are right, I looked again and this is indeed the midpoint of a range going back to the overnight session.
There is a tight consolidation after the break out. Stock didn't go to the heaven right away but it's still behaving well. Exit from this consolidation could prompt a small additional entry to an outright exit, depending on which side of the trading price chooses to exit. A break of the demand line can also provide a viable exit point. I would caution those who might fancy entering the upside break out here in case it comes. It's not as safe as earlier, hence, attempt at your own risk.
Previous comments regarding NUS: http://www.elitetrader.com/vb/showthread.php?s=&postid=3868586#post3868586
Current chart NUS Daily:
Gringo
p.s. I am finding less and less locations for reasonable entry in Q's etc. The end of day trading has this patch when not much is suitable, or at least not suitable for my comfort level.
Previous comments regarding NUS: http://www.elitetrader.com/vb/showthread.php?s=&postid=3868586#post3868586
Current chart NUS Daily:
Gringo
p.s. I am finding less and less locations for reasonable entry in Q's etc. The end of day trading has this patch when not much is suitable, or at least not suitable for my comfort level.
Some of the best ops are pre-mkt these days, so why not? If I'm up. Not usually as early as yesterday but I'm up before 0930.
Don't know what you mean by "pure management". Trying to show people how this approach plays out without all the over-thinking, though some try to avoid thinking about it at all by drawing tons of lines. There's a middle ground which is based simply on following price's lead. And if they try to reconstruct my day, they may understand it better.
And yes, 0858EST. I'm not going to translate anymore. Too many time zones. If people want to use their own time zone, that's fine, but it's a double-think, and those should be avoided. In any case, I'll just keep it NY so that people will always know what I'm talking about.
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