firewalker

I can see no reason to short! The YM made another test at 675, that was a re-entry possibility. Apart from that, if you're not in, best to stay flat imho!

I'm looking for 1950 at the NQ. The DOW went back to test support, but the NQ and ES held up strongly. Always interesting to pay attention to these divergences imo...

I thought I left YOU on the other board :o boy was I mistaken!!

You can't seriously be studying Flemish (ehm sorry Dutch)?? Thought so. I don't considering these levels to be that important, since that price level was only traded on the 24th on the open and nothing more. But you and smbtnt were right... should've taken some off there.

We don't do excuses here! :p

what did you do wasp? did you have a go at the NQ mr big money strange volume for no apparent reason

is that resistance because of Friday's high? or am I missing something else?

I waited for that line to cross, so definitely gave back some profits on that: only +30

:o nice try, I get what you're trying to say and the answer is yes, but your translation sucks big time! I'm not exchanging, I'm trading

owkay, noted... but I still can't see anything special about 730! except that it's near Friday's highs...

ah! now you tell me... what timeframe are you trading this instrument from?

And here's the continuation... It's funny considering I said this morning in my analysis from Friday (where we saw the same on the DOW that it's a shame these don't come around more often)...

and by now there's a nice demandline... http://www.traderslaboratory.com/forums/attachment.php?attachmentid=7496&stc=1&d=1218464368

lol, I hate cheese :o

you don't know what you're talkin' about :evil tongue: PS: but tell me anyway, where do you see resistance?

mini triangle...

what are you doing here? and your first post is going against me... :hmpf:

now that would be nice, but I doubt it'll be in the same manner as on Friday... I think some slower sideways Monday action. I took +30 at 700 and move stop to BE just to be on the safe side.

I found this post on "Re: Edge VS Mentality" interesting and have nominated it accordingly for "Topic Of The Month August, 2008"

DOW long 11670

Hmm, not specifically no... If you read a bit further, you find this: "Remember, price is the fastest moving element, and value develops much more slowly. On the day following an Open-Drive, you would expect to see the market open outside of value in the direction of the Open-Drive, or at least value beginning to build outside of the previous day’s value area. When you start to see developments that contradict the descriptions above, you should quickly realize that the confidence level is declining, and if your day trade is in the same direction as the Open-Drive, your risk is increasing along with the odds of a reversal. If the market continues as expected, on the other hand, then maintain your position and let the market work for you, monitoring activity for signs that the initial optimism inherent in the Open-Drive is beginning to wane, which would suggest that you should exit your trade; your goal should be to become proficient at exiting trades of your own free volition, rather than waiting for stops to take you out. This practice will boost your confidence level (not to mention your bank account)."

Yeah, the strong reaction at the open (also pointed out by wasp on his chart) was basically the "go-signal". You might find the following interesting, it's from the book "Markets in Profile - Profiting From the Auction Process" and it discusses the kind of open on Friday, one that the author calls the 'Open-Drive': "The strongest and most definitive type of open is the Open-Drive, in which the market opens and auctions aggressively in one direction. In Mind over Markets, the analogy we used was that of a race horse that explodes out of the gate and never looks back. The Open-Drive results in the lowest odds of opening prices being revisited, which provides you with an early market reference point; if price returns to the opening, you know that something has changed since the early morning, and chances are much higher that the day will end with the market auctioning in the opposite direction."

Commodities follow different rules than indices. Often after the top is set, a sharp sell-off occurs, where as in equities there's usually a need for distribution. This is basically what we are seeing in oil. The odds favour price being attracted by $ 112-113. After that a rally should follow, but some time of consolidation is possible. Be interesting to see this turn out.

I know this is hindsight now, but I couldn't see any short opportunities arise. Obviously Phil is right, if you aim for 10 points or so, there's always the chance, but the pure strength that pushed is higher at the open was amazing. I just couldn't see price reversing that day. Been a while since I did these, but here's my view: http://www.traderslaboratory.com/forums/44709-post327.html

It's been almost a month since someone posted to this thread, and I hate to see it go down under I've deliberately chosen not to use trend, support or resistance in this example. Just to show that just observing price action (and volume) you can get a very good clue of what the market's intentions are. This is from last Friday, August 08, DOW e-mini, 5-minute candles: (1) If price caught you off guard at the open (moving up 200 points in a good 30-minutes, there was at least one possibility to get aboard later on. Keeping in mind that price has already traveled the average daily range, I think it's important to keep expectations in check and not expect the market to move another 100 points just because we want it to. Then again, price can move further than what seems rational. (2) Unless you are paying attention to volume, you would've entered long at 'A', on what looks like a breakout of the converging triangle. And somebody with a wide enough stop would have gotten away with it. But not me, because I wanted to see continuation straight away. If price doesn't move, I'm out. I prefer to take a small loss than sit tight and hope. (3) 'B' was the definite entry, confirmed by volume. Notice how the attempt to move higher at 'A' gets rejected immediately. Not so at 'B', volume takes off completely and price makes another push higher about one hour later. All of this requires patience obviously. And lots of it. (4) After that price makes Higher Highs and Higher Lows, but momentum seems to take off. Given that it's a Friday and price has already made a run for almost 350 points, we realize that the first sign of trouble should make us run for the exit. (5) 'G' is still a higher low, but selling pressure comes in near 'H'. Look at where the candles close and look at the volume. We fail to make a high above 'F'. With less than one hour till the close, I'd definitely scale out here. If we break below 'G' the last swing will be broken and if you didn't take some profits at 'H', you'll want to do so at 'I' (giving back 50 points though)...