The trading Matrix

This quick thread is based around the ideas of Dr. Brett. I want to see if they hold up over time and the affect the overnight session has on the day session in the ES. Any and all ideas are welcome.

Basic premise I'm working with for today is this.

1)If the overnight high is contained within yesterdays day session and that high acts as support then we will go on to test the R1 level and the previous days high.

2)If the overnight high fails we will test the overnight midpoint and the S1 level and the previous days lows...

3)If the overnight low holds we will test the Overnight midpoint and the r1

Yesterday in the ES we have a high of 1176.50 a low of 1160.25 and a settlement of 1162.75. So the standard pivots are as follows:

R1 = 72.75
pv = 66.50
s1 = 56.50

The current overnight high is 1168.25 and the low is 1158.25.

We also need to incorporate the following statistics that Dr. Brett uses these being the Pivot being hit 75% of the time and R1 or S1 hitting 70%. He also uses an 85% probability of the previous days RTH high or low being broken. Some damn good stats if they are true.

On charts and in text I'll be using the following:

ONH = Overnight High
ONL = Overnight Low
ONM = Overnight midpoint
PDL = previous days low
PDH = previous days high

EDIT********************************
The overnight session can only do a few things that we can base our daily matrix around and that is:

Make a HH and HL then the RTH
Make a LL and LH then RTH
Make an outside bar to RTH
Make an inside bar to RTH
No differnt then comparing RTH to RTH really
***************************************************

I'd prefer to keep this to concepts and not specific trades. I have a nasty habbit of mixing trades in posts and also mixing trade concepts. So please feel free to slap me around if I get out of context for this thread. Of course post whatever you think that helps in understanding the matrix as I am not the best communicator in posts.

Bruce

here's todays summary chart -

I have to leave in just a few minutes to take my car to be inspected, (and I have to sit there and wait for it to get done.)

I have been looking at AH PA (Price Action) Only. Just AH.

I think I might be able to come up with some contributions to the matrix analysis here.

JUST AH PA.

I try to keep abreast of 50% retracements, Bruce calls them midpoints and he has been marking them on the following day's RTH chart, but...

As I started marking 50% retracement levels of AH PA Only, I think there is some signficance and a relationship between Today's AH PA versus the Mid point (50% retracement level) of the PREVIOUS day's AH PA. AH Only... and be aware of the Price level of the previous week's AH ONLY H of the week. I have plenty of comments and I already have a chart ready but It might be too confusing without proper explanation. I have to run right now (inspection runs out tomorrow).

A quikie...market has only 3 , one minute bars above the ONH and goes back to retest the ONM

POST DELETED

It's no surprise that the overnight highs and lows are coming in close to the standard Pivot levels so my crude charts seem cluttered.

I wish the ranges would open up. Here is almost all of Tuesday. The last 5 minutes or so are not here. Anyone thinking of traing off the concepts in this thread need to qualify how/when a price holds or above these key area. That would be true for any S/R numbers...

Matrix said today that if we can't hold above an overnight High then we will test the ONM. If we can't hold the ONL then we test the ONM.If we can hold below an ONL then we will target S1.

Then we have to see where the other key levels come in for further targets or stops IF one is trading off these. The real tests with this will come when the ONH and ONL's donot match up with pivot numbers

Matrix says that if we can't hold the ONL then we will retest the ONM....here is today so far....only 2 one minute bars spent below the ONL and then the rally...and added twist that I'm applying to the concept is the application of other markets.....all markets ( ES,YM and NQ)came back above their ONL's..

I'm watching now to see if the ONM leads to a test of the PV ( and ONH )and gap close...

Here is the chart so far today..

Perhaps Dr. Brett has been re- inspired by our thread here...either way he's gonna be able to put things in context a hell of a lot better then I can.....so this link needs to be here as he's writing more about this today

http://traderfeed.blogspot.com/2010/03/defining-effective-price-targets-with.html

Bring it on Paul...just because nobody responds doesn't mean they aren't interested...unfortunately the forum is becoming more of a spectator forum than that of active participation....WE can "see" how many read them.....so we help others who don't care to vote, leave feedback or contribute and at the same time we help ourselves by exploring the ideas and reaffirming concepts that are important....

I think it's nice to give credit for the inspiration....so Dr. Brett I tip my hat to you and applaud you..

Originally posted by PAUL9

I have to leave in just a few minutes to take my car to be inspected, (and I have to sit there and wait for it to get done.)

I have been looking at AH PA (Price Action) Only. Just AH.

I think I might be able to come up with some contributions to the matrix analysis here.

JUST AH PA.

I try to keep abreast of 50% retracements, Bruce calls them midpoints and he has been marking them on the following day's RTH chart, but...

As I started marking 50% retracement levels of AH PA Only, I think there is some signficance and a relationship between Today's AH PA versus the Mid point (50% retracement level) of the PREVIOUS day's AH PA. AH Only... and be aware of the Price level of the previous week's AH ONLY H of the week. I have plenty of comments and I already have a chart ready but It might be too confusing without proper explanation. I have to run right now (inspection runs out tomorrow).

Market isn't closed yet but there was only one full one minute bar above the ONH. The YM never broke it's ONH...that was key. Certainly not the buying we like to see if we were breakout traders. We know better...anyway the Matrix says that if we can't hold an ONH then we will test the ONM.....here it is...

I'm not sure if this is cool to post this but it's a post that will remain on Dr. Bretts site for only a limited time. Let me know DT if I need to delete this..

[Removed by Admin]

Monday was a unique (and for me, untested) situation due to the abbreviated Friday session, but that session was technically ALL AH action). All I did was apply the 50% of the previous day measure.

Monday's PA after 11:00am is one thing that continues to compel me to figure out a "methode de trade" that is only during the 6am to 11 am window (unless there are specific conditions in place; exactly what those conditions are, I do not know yet.)