ES 9-26-12

A bit under the weather the past few days and I just got moody yesterday...strange - but true..I am also working on some other things that shouldn't be posted at this time so I decided to take the "ZERO" for yesterday.

Today to sum up -
I had 1435.50 as one of a few key areas but no trade as it was too close to the open. The bell curve I was watching was from the fed day so was looking at the 1430 - 32 area..took two longs that didn't doo much in that zone..one win and one loss

I wasn't prepared and forgot about the 1427 volume I had marked on my charts from the day before that fed day. What happens at those specific areas is that we either hold and get some nice divergences and delta flips or they blow through it to take all the stops out and then come back to test it from below. Today I only had a signal to get long near 1425 and had a good probability of getting back to that 1427...this area was also twice the IB low projections so good confluence down there

Up above we still have that opening volume at 34 - 35 and down below we have 1427 and 1425...you can see how close they came to stopping out there . I'm not playing anymore but I think any buyers need to hold inside the HOUR in order to go get that 34 - 35 and the 37.50 if the bulls can take control

If we blow through the opening range high I would look for some divergent signals to get short for a retest back to that 34 - 35...not sure what will come but hope to be resting with a bottle of nyquill by then

In general we always want to see where sellers and buyers initiate trade from and what happens when we come back to those areas. Most times you will have some high volume that created the push out away from the consolidations...so we always need to see that high volume thrust and the low volume that is left in it's wake...

I am not talking about cummulative high volume where price jerks pack and forth that create the days ending vpocs etc..I am specifically referring to THEE point that sellers or buyesrs take over to create lvn's for that time period..

Selling LVN's are ALWAYS made up of a high volume node which sits above a selling LVN. a buying LVN ALWAYS has a high volume node that sits UNDER the buying LVN

My suggestion is to get away from looking at the bigger cummulative onces to see if this has meaning too you.

The 1425 and 1427 are examples of buyers taking over today for those who want to study...

gotta run


EDIT : Buyers have to stay inside "HOUR" low...I had typed "ON" low by mistake...so it's true I really am going a bit crazy ..so I changed it above

and please make sure you read the tail end of yesterdays thread as Sharks has made some great observations about TODAYS trading !!