The Price Action Journal
- Thread starter SusanaDT
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Your a sweet guy kiss kiss
Personally I don't care
I like your style and couldn't care less if you charged millions as a matter of fact I think you should.
Here is my .02 cents for the morning action, I didnt trade it though because I'm on holidays for the summer.
Just thought I would add to the mix of how I look at price action.
Also significant was the fact that ES, once it traded above yesterday's day session low of 1255, which was right around S1, bounced twice off of that zone. Lunchtime was a slim jim (actually, a ham sandwich, here), and an attempted breakout of the lunchtime lows on high volume. The supply, on high volume around 2:15, was easily absorbed.
Once that happened, yesterday's high, which happened to be right around R1, was in play. If S1 fails, R1 is often in play. Today, it was both/and.
Jay, what did you use as a stop in the second trade here?
It's similar to some of the trades I do - waiting for extra confirmation.. When I do this though, I find I need a bigger stop if it's going to be at the bottom of the swing.
Do you remember where your stop was placed?
Note - I'll throw up an NQ chart tomorrow, surprised we don't have more of them. I thought NQ was where it's at for AHG?
<i>"Once that happened, yesterday's high, which happened to be right around R1, was in play. If S1 fails, R1 is often in play. Today, it was both/and</i>
With utmost respect to SusanaDT and her request to nix the indicator talk in this thread, S1 to R1 or R1 to S1 has been a favorite pattern since 2002. If a 1-value holds price test and reversal... especially in the morning, there is a great chance of seeing the pivot traded thru and opposite 1-value (or beyond)tested. It has much better than 50% odds for success, which can embolden us to hold trades thru noise for big to huge gains if patient.
The values were tight yesterday due to Monday's non-range, but the ER went from S1 to above R3 yesterday. S1 to R1 was easily there.
The pivot point itself is touched = brushed roughly 70% of the time intraday over the course of time. A couple of things to keep in mind for traders who rely on support and resistance for roadmaps. Prior day's ohlc are equally valid. When values overlap on a chart, it creates layers of S/R which are important to know.
I suppose the label "indicator" is rather gray. Pivot points, ohlc and other price measures are actually horizontal lines on a chart. Pretty much fixed trendlines of relevance, when you stop and think about it.
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Excellent thread idea, Susana. Topics like this used to be common in this forum. Now it's a rare pearl between endless rubbish threads which have driven many readers away for good. I seldom visit here anymore myself. This thread gives reason to stop in and share.
With utmost respect to SusanaDT and her request to nix the indicator talk in this thread, S1 to R1 or R1 to S1 has been a favorite pattern since 2002. If a 1-value holds price test and reversal... especially in the morning, there is a great chance of seeing the pivot traded thru and opposite 1-value (or beyond)tested. It has much better than 50% odds for success, which can embolden us to hold trades thru noise for big to huge gains if patient.
The values were tight yesterday due to Monday's non-range, but the ER went from S1 to above R3 yesterday. S1 to R1 was easily there.
The pivot point itself is touched = brushed roughly 70% of the time intraday over the course of time. A couple of things to keep in mind for traders who rely on support and resistance for roadmaps. Prior day's ohlc are equally valid. When values overlap on a chart, it creates layers of S/R which are important to know.
I suppose the label "indicator" is rather gray. Pivot points, ohlc and other price measures are actually horizontal lines on a chart. Pretty much fixed trendlines of relevance, when you stop and think about it.
*
Excellent thread idea, Susana. Topics like this used to be common in this forum. Now it's a rare pearl between endless rubbish threads which have driven many readers away for good. I seldom visit here anymore myself. This thread gives reason to stop in and share.
<i>"Note - I'll throw up an NQ chart tomorrow, surprised we don't have more of them"</i>
Day in & out, I think the NQ is purest trading emini of all. But, they all have their turn at bad hair days.
While the ER trended straight up in textbook fashion and the ES trudged along, yesterday the NQ just wedged & coiled for hours in narrowing fashion. It was poised for a break, one way or the other.
Past 1:30pm est the NQ broke out of two wedge patterns in bullish fashion. Then it broke down (on the highest volume bar in hours) thru both patterns to create what looked like a failed-pattern reversal move. How many times have we seen indexes rally in the morning and roll over dead in the afternoon? It was possible that all of them were headed lower into the close, with NQ about to lead.
Didn't happen. Price action then broke back upward thru both wedge patterns, albeit on waning volume from the drop. A second pullback on rejection at S1 also spiked volume into the selling. Volume waned twice on the ascent following two program sell slams.
Volume lied. It often does. The daily pivot magnet sucked price action in to yet another fulfillment at the close.
NQ rose in agony yesterday, sellers were most active here by far. Looks like the naked-short moratorium is working as planned. Seemed to have least impact on techs, but rising tides lift all ships. Rally mode until the next catalyst arrives to push prices down, then we repeat the endless cycle.
Day in & out, I think the NQ is purest trading emini of all. But, they all have their turn at bad hair days.
While the ER trended straight up in textbook fashion and the ES trudged along, yesterday the NQ just wedged & coiled for hours in narrowing fashion. It was poised for a break, one way or the other.
Past 1:30pm est the NQ broke out of two wedge patterns in bullish fashion. Then it broke down (on the highest volume bar in hours) thru both patterns to create what looked like a failed-pattern reversal move. How many times have we seen indexes rally in the morning and roll over dead in the afternoon? It was possible that all of them were headed lower into the close, with NQ about to lead.
Didn't happen. Price action then broke back upward thru both wedge patterns, albeit on waning volume from the drop. A second pullback on rejection at S1 also spiked volume into the selling. Volume waned twice on the ascent following two program sell slams.
Volume lied. It often does. The daily pivot magnet sucked price action in to yet another fulfillment at the close.
NQ rose in agony yesterday, sellers were most active here by far. Looks like the naked-short moratorium is working as planned. Seemed to have least impact on techs, but rising tides lift all ships. Rally mode until the next catalyst arrives to push prices down, then we repeat the endless cycle.
good morning,
If AustinP and SmilingS are going to be generous enough to impart their knowledge about trading levels, then the readers of this thread are indeed lucky people and should do all they can to keep the thread clean.
By all means trade on s&r alone, it's your call.
But chuck in yesterdays lines, two day and three day lines and know where the weeks lines are.
Add PP, S1, R1 etc to sweeten the pot and know at all times where the rth open and midpoint are during the session and now you are cooking with gas.
If you think these horizontal lines are indicators and therefore offensive, just called them by some other name.
Call them "common sense" for instance.
Never forget that less than 15% of the strikes account for more than 85% of the contracts traded.
Make this fact work for you.
regards
f9
No comment other than the one level on the chart I'm watching.
http://charts.dacharts.com/2008-07-23/2008-07-23 08-29 ES #F V24000.png
And if the high is tested from right here I'll raise the bar to 1278.75
http://charts.dacharts.com/2008-07-23/2008-07-23 08-29 ES #F V24000.png
And if the high is tested from right here I'll raise the bar to 1278.75
I just put in a 2 point stop which was plenty as the market didn't even want to down tic to let me in. Volume was rocking which is the only reason I got in here as usually I will not chase at all. It was obvious that this was not just stops getting hit on the long side as the prints were too big. JPM was also buying here. I moved my stop to BE pretty quick also.
Here is a perfect example of why I use bonds as an ES indicator. Bonds broke about 10 minutes before ES, and continued down on good volume throughout that time, before ES broke to topside. Usually the lead time is a minute or less, but is still really valuable. I only use bonds as an indicator when I am already looking to trade ES, not all day long.
Note: I was short bonds, so my ES position was small. They are so highly correlated that I treat them as the same trade for risk evaluation.
Note: I was short bonds, so my ES position was small. They are so highly correlated that I treat them as the same trade for risk evaluation.
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