Trading the Pivots

JJ,

There were two pretty clear continuation buy signals today (if I'm reading these correctly).

10:40a (a second at 11:30) and 13:45p

One chart that I use to help give me confidence when using some kind of continuation signal is a chart of the $ndx-$spx.

This is a spread of the nas vs the spx, I do it at .856$ndx - $spx on esignal.

IF the nas is outperforming the spx in the direction of the trade, I will take it. I find the nas leads all and the spx has a very hard time moving opposite the nas.

We are now up against .618 retracements of the entire move down from the May highs on the spx and indu.

Thursday should be interesting.
 
Hey JJ,
I haven't gotten to do much trading this week. How has yours been going? Todays trading action was almost identicle to yesterday. The same formations and all this morning. It made for some easy trading but made a lot of people nervous because they thought they were still in yesterday. Kind of a groundhog day. Hope all is going well I have been leaving your journal alone since I don't have anything of value to add. Keep it up...

Gary
 
Quote from JimmyJam:

Hey bluegreen,

I use Medved Quotetracker and IQ Feed.

The Line is a customized Paintbar that tells me when the CCI Histogram is Above/Below the Zero Line and when it is Above/Below the 100 Line.
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Thank you. What is your SMI indicator stand for?
 
Quote from bluegreen:

Thank you. What is your SMI indicator stand for?
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Hey bg, the SMI is a Stochastic Momentum Indicator. It's a hybrid version of the Stochastic/MACD, and I'm not using it anymore in my approach to showing setups on the thread. I'm using a CCI Histogram as a confirmation tool for Longs and Shorts.

Best,

JJ

P.S. Stay away from that ADX, that thing will bite! :)
 
Quote from 4re:

Hey JJ,
... Todays trading action was almost identicle to yesterday. The same formations and all this morning. It made for some easy trading but made a lot of people nervous ...
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Hey Gary,

Easy trading! :eek: :confused:

Easy trading for whom?

As you mentioned, the Longs were uncoomfortable until the late session push confirmed their positions, and any members of the Gap Band felt the pain.

I just sat the fence ... a good place to be when you aren't sure what to do.

Thanks for the kind words. :)

Later,

JJ

P.S. I left you a midnight snack :D .
 
Nice thread JJ,
Always great to see a trader making intelligent moves and inspiring others on the path. You have the right mental approach and your onto some good concepts that seem to be "IN SYNC" with your temperament. Keep going.

Peace.
 
Quote from DonKee:

JJ,

There were two pretty clear continuation buy signals today (if I'm reading these correctly).

10:40a (a second at 11:30) and 13:45p
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Yeah, you're right, the system worked, I was a putz. :)


One chart that I use to help give me confidence ...
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Thanks for the info, and I'm glad you got yours today in the market. It puts to lie the so-called truth that "trading is a zero sum game, for one trader to win, another has to lose", it just ain't so. Yesterday I had the big win (and the big grin), and today was your turn.

We are now up against .618 retracements of the entire move down from the May highs on the spx and indu.

Thursday should be interesting.
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You got that right, see ya mañana.

Best,

JJ
 
For Thursday, 8/17/06.

Market Status

Market Trend: Up

1st Resistance: 1304
Median Pivot: 1295
1st Support: 1290

Current Trend: Bull Roar!
***
Well lesson learned.

Actually many lessons were learned in yesteday's session.

The most important one being that trading this system in a consistent, methodical fashion will in the worst case scenario keep you sitting on your hands when you are not sure of what to do in the markets.

Didn't want to go Long (exact same setup as yesterday, didn't like it), but the system did not give me permission to go Short (Pivot Trend is Bullish, TRIN did not Go Red), so I "sat".

Now, if we can just extend the wins, we might have something go'in on here.

See you at the Open.

Best,

Jimmy Jam
 
Quote from JimmyJam:

OK, I was wrong.

The exact same setup, two days in a row, now I've learned something new. It's very rare to see it (at least, it's very rare for ME to see it), but the Continuation trade would have delivered profits AND the market is closing on its Highs.

Fortunately, since the Pivot Trend is Bullish (and despite all arguments to the opposite, the ES has displayed amazing trendiness over last couple of days), and the TRIN never signaled selling, I was not Short (but I bet lots of folks were, this is one for the books!).
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Rare, but not uncommon. They usually happen a few times every year (similar days following each other).

The upside reaction to CPI made it fairly obvious to work the long side.

However, I really don't think the last two days have been great trend days in line with normal trend days. A good trend day range is usually 15-20 points. What was the range the last two days? 15th August: 10 points; 16th August 8.50 range. That is pathetic!

Of course, you can make money on any day.
 
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