ES Short Term Trading 5-11-10

Originally posted by PAUL9

Bruce,
your comment about trading back to the midpoint of the AH (Overnight) of the preceeding day was one of the rudimentary observations I had made weeks ago when I was trying to figure out how in the world to use AH PA, is it predictive?

The charts I showed (AH PA Only, included the 50% retracement level of the >>> previous day's AH activity). my general assumption at the time was that all other things being equal (which they never are!), if 50% of the previous day's AH range acts as support, higher probability for a move to take out current AH H (if 50% of prior day's AH range acts as resistance, higher prob of taking out AH L).

Think about it.
Markets constantly look for re-assurance by retracing moves; in that retracement, the chart pivot point (not floor trader pivots, I'm talking about a swing price point, a swing H or swing L) tells you what price is making buyers or sellers salivate. In order for prices to move, buyers have to more aggressiveness than sellers, or vice versa.

A pure 50% rettracement of the RTH can also have importance.

Originally posted by TraderF

we have gaps all over the place! several above....and a huge one below. kind of a weird area to trade.

Originally posted by redsixspeed

Originally posted by feng456

followed my plan to the letter

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Hey feng;

Record your trade from time to time. Call the trade as you
see it setting up, record what you say then go back later
listen to what you did right. This may be a good teacher...