ES Tuesday 1-31-12

Magnet price zone is 1312-1314.50 as this is the weekly OVERNIGHT open, fridays VWAP and more important is the weely pivot .

This is a market that is trying to balance as we had last weeks close near it's open and we broke the lows of last week to stop one time framing up on the weekly..


Preference is to sell up into the 1317 - 1319.50 area...buys come down in the 1308 - 1305 area....keeping in mind the 1312- 1314.50 magnet...

Above there we have low volume that begins at 21 but I'd prefer to see what happens at 24.50 - 26.50

reports today!!

Nicely done. I'm hanging in there for now -- transports rule for this sort of thing, I'm finding.

I just made a new video that covers the air pockets due to some emails. Not sure if I'm making it better or worse. It is important to remember that we are always looking at breakdown points ( or break out points in a rally phase)......then the test is "how many bars passed through the break down ( out ) point ? If there is only one bar that creates the breakdown and no other bar passes through the breakdown point then we have an air pocket....that is the critical question to ask....

Please let me know if any of this video makes sense as I'm trying to get this sorted out and hopefully I'm not making things worse..


While we can have more than one air pocket that forms on the day , we only form air pockets when creating new highs or lows during the current day session. They donot form inside the range...prices need to be covering new ground on the day

Bruce,

Thanks for the videos, I appreciate the continuing education and the effort you put into it. Initially I understood the air pocket to be valid only after the completion of the second subsequent bar, not merely the close of the next bar, is that correct?

There is the bar that breaks out and closes beyond a range.....this actually creates the air pocket but it is usually the next bar that confirms the actual breakout by not trading back to the breakout point......

so we basically need a third bar ONLY to CONFIRM the air pocket.....if you had a breakout but then DURING the next bar you got a reversal signal it is ok to take the trade to get the air pocket to fill in...u don't need to wait..I do that all the time with 30 minute bars..

Yes that makes much more sense on the 30 min time frame. My tendency is to watch the 5 min for those air pockets-amazing how they fill. Thanks again

a look at how just the bell curves looked coming into today...

You would have had lines at 08.25, 05 and 02.75 besides the range extremes

below todays price would be 1301.25 and 98.75

bruce is this monday's rth only ?

Originally posted by BruceM

a look at how just the bell curves looked coming into today...

You would have had lines at 08.25, 05 and 02.75 besides the range extremes

below todays price would be 1301.25 and 98.75

Click image for original size

correct Nick..

but those are not 30m tpos, are they? they seem like too many for jsut one rth session

Bruce, why my market profile chart of the ES dated 1/30/20`12 does not show the same bell curves as your?
I have Investor’s RT
Is your chart a composite of a couple of days? If yes which ones

and thanks to all for the positive feedback on the videos etc...