Wacky week

T

tenthousandmen

I understand there have been a couple of unusual bits of news, but this is the second day this has happened... incredible bear flags today.

I'm not drawing conclusions (yet), but thought I'd share, even if I get slammed with stupid comments...

I apologize if some of my lines are off center...
 

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are you trading the breaks of the lower trendlines on those flags? They have paid well for the last three even if you only capture 30% of the break.
 
Quote from Trvlwanderer:

are you trading the breaks of the lower trendlines on those flags? They have paid well for the last three even if you only capture 30% of the break.
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I don't trade off those indicators directly, I use them as a basis for my own semi-discretionary systems.

Using the standard indicators is a great way to judge, since they're not systems themselves. IMO
 
Quote from tenthousandmen:

I don't trade off those indicators directly, I use them as a basis for my own semi-discretionary systems.

Using the standard indicators is a great way to judge, since they're not systems themselves. IMO
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Not sure why you are calling a trendline an indicator since it is subjective and not a mathematical result.

Take a look at the lower TL break going on now with the es and the breakdown of the previous bear flags. See the commonality?

Note the chart I posted today on the es journal thread. those lines are still in tact and actually being broken as we speak.

Hope that helps your original question

 
Those aren't trend lines, I used the lines to show the divergence, not trend patterns. This is the standard way to use these indicators (MACD, and money flow/share accumulation data). Fundamental data - not a curve fit or hypothesis.

Thanks for the reply... happy trading tomorrow. :cool:
 
Have you looked to see if there is a price divergence with the RSI as well? I understand prices tend to correct in favor of the RSI after a divergence.
 
Quote from bc1:

Have you looked to see if there is a price divergence with the RSI as well? I understand prices tend to correct in favor of the RSI after a divergence.
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Yes, not a big divergence however.

I've been focusing my time the last two weeks perfecting 4 systems I wrote... none of them are negatively affected by this. I don't directly trade off of any of those indicators - I like to use the chart I posted (and one other) to measure statemented from a technical perspective, and to forecast future direction. Clearly the recent news has had a 'more unusual than usual' affect. So... be aware! Thank you for the input bc
 
Quote from damnfinecupojoe:

Where is the volume? Off to an insipid start to the year that's for sure!
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This is the lowest average volume over a two week period in two years! (I did not check back any further.) Makes technicals very unreliable, because anyone with lots of leverage can come in and move the market.
 
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