Trading the Pivots

Quote from 5Pillars:

Yes.....50 bars with dev set at 2.0 for the channels on a 317 Tick chart
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I asked because it was so amazing how the channel lines almost exactly contained the swing highs and lows. I figured you had hand-drawn those channels.
 
Quote from 5Pillars:

This was a decent ES LONG set-up imo...........

http://www.charthub.com/images/2006/09/06/ES_317_VB_2.png


YM looked strong at the time of entry so this was a very good scalp trade off the ES 1305 MP level (no new selling in the 1305 area....sellers started covering)...........

http://www.charthub.com/images/2006/09/06/YM_317_TICK.png
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It's amazing how often we get at least a small reversal (1-2 pts)
if we are trading around a pivot level at 12:00p est. As you said. volume starts to dry up and the locals can bounce it off of a S or R level.
 
Quote from romik:

divergences were also present in RSI/CCI
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Yes I am not surprised.....the "delta" divergence I had was the most significant factor for me to go LONG at that point.......that was about as good a set-up as one can get for the ES.
 
Quote from DonKee:

It's amazing how often we get at least a small reversal (1-2 pts)
if we are trading around a pivot level at 12:00p est. As you said. volume starts to dry up and the locals can bounce it off of a S or R level.
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Also, any price action "stalls" can cause holding SHORT's to cover which in itself will cause some movement....that is why I only went for 1 point, as I am trying to catch bottom pickers volume mixed with SHORT covering for a small move.


There is still a possibility that "J" period (14:00 EST) could bring in more selling to break through this MP level area for the ES....so I was not looking for any big run-up with my trade as the ES is still "net" SHORT -35,000 contracts.
 
Quote from 5Pillars:

Also, any price action "stalls" can cause holding SHORT's to cover which in itself will cause some movement....that is why I only went for 1 point, as I am trying to catch bottom pickers volume mixed with SHORT covering for a small move.


There is still a possibility that "J" period (14:00 EST) could bring in more selling to break through this MP level area for the ES....so I was not looking for any big run-up with my trade as the ES is still "net" SHORT -35,000 contracts.
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Thanks for the info and input 5P, this is what makes a market.

I don't think this is distribution, I think it's profit taking by all of the smart longs who got on the gravy train about 1 1/2 weeks ago.

The dominant trend is still up ... and IMHO, since we aren't going to distribute today (the selling candlesticks are all very small, this does not denote bearish behavior), the market is going to trade back up to the Open.

For the sake of the thread, I'll play it straight, but on a downward move like this I would just stretch my stop, at worse I'd get out a little below BreakEven at the Close.

Regards,

JJ

edit: for the readers who have been following the thred, note the IFT is now above the 0 Line, denoting bullish price action ... i'm experimenting with differnt modes of entry to see if I can improve on it for the general reader, but probably not.
 

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Good pre-"J" period SHORT signal that hit for a profit.........


http://www.charthub.com/images/2006/09/06/ES_317_VB_3.png


Nasdaq has been just too negative today for the market to hold price levels. The Dow is the only thing holding the market up at this point.....which makes sense as positions initially rotate defensive prior to bigger sell-offs. If the Dow were to get to about -60.00, then we may get some selling acceleration into todays close.
 
Just wanted you to see that JJ's original entry system still is working quite well.

I was short from 1305.75 with a break-even stop. Just missed my 2 point profit on half (no fill on my 1303.75 bid) :(

Stopped out at break-even, but the entry was still valid.
 

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