Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Recommended Posts

Only now all the numbers are different due to the RO. In any case, that initial long trade yesterday was quick, easy, and profitable. But then we hit resistance and the long side was done. If one was able to find a good short entry and hold onto it, he did even better. However, short entries were not nearly as clean.

 

This goes back to what I was saying -- or trying to -- about going long in a downtrend even though the market may be "oversold". There's much more to push against in this situation, so using the opposite side of whatever channel there may be is over-optimistic. This is not to say that there won't be profitable long trades, as was the case yesterday. But one must be especially attentive to signs that there's just too much supply for demand to absorb and break through.

 

I thought that yesterday eliminated a lot of supply at resistance and now we would be even more oversold .

erie

Share this post


Link to post
Share on other sites

Since supply won the day, I wouldn't say that a lot of it was eliminated.

 

In any case, the problem with the ES now is that it's under the trading range which was established Wednesday. The NQ is stuck between the bottom of one trading range and the top of another. The long side may be a difficult row to hoe.

Share this post


Link to post
Share on other sites

Fortunately, FW posted the first one in real time:

 

7064d1213288935-trade-discussion-and-analysis-nq_hinge.gif

 

This isn't a box, of course, but it does illustrate a different type of range-bound compression, which is what the boxes are all about anyway.

Share this post


Link to post
Share on other sites
Bearbull, what considerations would have you be sure the probability was to the downside?

erie

 

Combination of factors:

Resistance from the left, climatic vol. first around 1960 on the 12th , then around 1980 for the 13th June.

 

One could enter at dead centre (Wyckoff term) prior to breakout, with very small stop loss or wait for a breakout with increased vol and a slight retracement (No demand in VSA jargon) on a limit entry.

Share this post


Link to post
Share on other sites
I don't trust hinges and triangles that much. Seen to many of them fake and fail in my time.

 

Susana

 

Goes with any setup, depends on the context, wyckoff employed it to great advantage, that is good enough for me.

Share this post


Link to post
Share on other sites

Regarding resistance, there are several ways of looking at it. One can, for example, plot a volume distribution (the hinge is circled):

 

 

attachment.php?attachmentid=9320&stc=1&d=1233768840

 

attachment.php?attachmentid=7096&stc=1&d=1213546274

 

Drawing a line below the bottom of the middle distribution gives one a zone on which to focus, particularly when price opens below this zone (price also opened below this zone the previous day, leading to another profitable trade):

 

 

attachment.php?attachmentid=9321&stc=1&d=1233768912

 

 

attachment.php?attachmentid=7097&stc=1&d=1213546343

 

Or one can draw a box around the congestion:

 

 

attachment.php?attachmentid=9322&stc=1&d=1233768912

 

 

attachment.php?attachmentid=7098&stc=1&d=1213546343

 

Or one can use plain ol' S/R lines, noting the test of the previous day's high:

 

 

attachment.php?attachmentid=9323&stc=1&d=1233768912

 

 

attachment.php?attachmentid=7099&stc=1&d=1213546343

 

All ways of illustrating the same thing. And it doesn't require special software.:)

cajas85.gif.ecc89f7b20f4fdcc5baa5d18b200b19f.gif

cajas85a.gif.7128f526eb18e17426e6d9f94f5aba4d.gif

cajas85b.gif.383518f0e4bd25af00322001a27b8afc.gif

cajas85c.gif.3570ce785315eca54833abe3b09d70b6.gif

Edited by DbPhoenix

Share this post


Link to post
Share on other sites
The first two are OK in hindsight, but don't seem very practical in real time.

 

It would be difficult to post Wednesday's and Thursday's action ahead of time, but this is what one would have plotted Tuesday evening, if he were to plan out all of this in advance, which is, after all, the whole point.

 

attachment.php?attachmentid=7102&stc=1&d=1213578744

 

The support and resistance levels for tomorrow, as well as the midpoints, are now done, in the previous post (though the truly prepared will want to include Friday). Anyone who's noted them can now plan out his trades. In advance.

 

As to the first two being "OK", all four present the same information.

Edited by DbPhoenix

Share this post


Link to post
Share on other sites
That was "OK in hindsight," the operative word being hindsight.

 

And, as I said, all four present the same information. In any case, if you're interested, here's what you should have for today, at minimum. If you don't know in advance what you're going to do at each point, then you're not prepared.

 

 

attachment.php?attachmentid=9324&stc=1&d=1233769099

 

attachment.php?attachmentid=7107&stc=1&d=1213623254

cajas90.gif.136ebf2d576db523133ac750ab945189.gif

Edited by DbPhoenix

Share this post


Link to post
Share on other sites
1370-71 may be an anticipated level for tommorrow , resistance wise...

erie

 

 

I was basically looking at the same yesterday, which I why I was surprised to see the NQ hit resistance but the ES stay behind. Might be worth following both next to eachother, I've often found breakouts to be far more reliable when the corresponding resistance level on a correlated market is breached simultaneously.

Share this post


Link to post
Share on other sites
I've often found breakouts to be far more reliable when the corresponding resistance level on a correlated market is breached simultaneously.

 

You incorporated a breakout strategy for yesterday? Hmm, maybe that's something I should give more thought.......

erie

Share this post


Link to post
Share on other sites
You incorporated a breakout strategy for yesterday? Hmm, maybe that's something I should give more thought.......

erie

 

I think it's always good to be aware of potential breakouts, but what I was really trying to point out was the divergence between the ES and the NQ.

 

Now, with about 45 minutes before the open, the ES has touched 1972 and reacted off it (albeit on news), moving about 5 points higher than yesterday's high. At the same time the NQ hasn't moved free of the resistance. So it looks like both markets are trading at or below resistance, which - at least for me - would help increase the odds of a successful short if resistance is rejected.

Share this post


Link to post
Share on other sites
I think it's always good to be aware of potential breakouts, but what I was really trying to point out was the divergence between the ES and the NQ.

 

Now, with about 45 minutes before the open, the ES has touched 1972 and reacted off it (albeit on news), moving about 5 points higher than yesterday's high. At the same time the NQ hasn't moved free of the resistance. So it looks like both markets are trading at or below resistance, which - at least for me - would help increase the odds of a successful short if resistance is rejected.

 

Rejection being 1366?

Share this post


Link to post
Share on other sites
No the question was rejection being 1366? ( your definition of rejection )

 

Ehm, I'm not sure we are still talking about the same thing here :\

I don't see anything special about 1366, so I don't pay much attention to that level, hence the only rejection I would look for occurs at or near resistance.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.