ES Friday 8-23-13

basically looking for sells on a higher open to TARGET the 54.25 magnet...95 % probability it will print TODAY...

57 - 58 is key upside then 61 - 62 and 65.50.....then 69 - 70

video says it better..volume was lighter in all markets on the upmove yesterday


here is the video...if we make new highs before the market opens we will need to adjust the magnet price up tic for tic....

I tell you one thing that amazes me.

A few days ago Bruce mentioned that the 50.50 area was a magnet.

Did anyone notice what the overnight Low was...exactly 50.50,

Thanks Bruce for that observation about the trend day that kills the faders one day, but should embolden for the next day. Makes a gap up open like today a prime target for regression and gap fill.

Hi Bruce
Good morning to you and to all forum members I just came in and am reading your first post about the 54.25 being the “Magnet” price and the 95% chance for a print of that price…

I searched all over my charts and could not come to your Magnet price I see the close and VAH at 54.75
High of the day at 57.75 POC 51.75 high volume at 52.25

The only 54.25 price I see as “Anomaly” on a Market profile chart and per Mr. Dalton there is a big chance that the market will print this price …but within a couple of sessions…

Will you please take your time and make us a video(s) to how you come every day to your magnet price
Also about the 95% chance of a print, is it for today only or for all magnet prices every day...

Your answer will be the most valuable to me thank you for taking the time to share with us your trading strategies (no rush for an answer take our time please)

try watching his video..he explains the 54.25

Thank you Duck I have to watch this video using a different computer…my question does not relate only to today Magnet price but to everyday
most days I have a problem finding the same magnet price as Bruce does…
so my question is still relevant for you Bruce if you read this thread

Hi David,

The original magnet price I posted today was nothing more than the overnight 50 % mark. In order to get some video posted and prepare I have to do the postings well in advance of the open. So by the time we opened in the RTH session we had rallied a bit higher which raised the overnight midpoint ( 50% of the O/N tange) up also. So I made that comment on the forum


Today I liked the Overnight midpoint as a magnet but it isn't always the case. I'm always trying to see what happens in the overnight and compare that to the day session. And of course I am looking at support and resistance to initiate from. I find I can get the magnet price correct about 80% of the time but it doesn't mean I can hold trades long enough to hit that magnet. It helps form a bias. Many know that the overnight high or low gets broken 95- 96 % of the time ( thank you Dr. Brett for that) but it is damn difficult many days to use that statistic and make money.

Today I was selling the 61 in the overnight and the day session open but was scaling out long before the Magnet price.....like the 57 - 57.50...see Pauls Gap postings and yesterdays highs....I like to take something off as it moves in my favor and that was an automatic area to take something off....so having multiple contracts lets me try to hold longer for the ultimate magnet but it is best to take something off at your first support point if on a short trade just in case. I had 57 - 58....see my first post...so it's always just coming back to trying to trade from one zone to the next...we can throw in LVN's, HVN,s ...Value areas etc but it all seems to be some derivative of price action anyway... these things just help give us confidence.

There is a lot I factor into the bias and knowing the volume from the previous session and keeping track of what the overnight has done helps...read my comments about the concept of trending in the first hour one day but not doing it again the next day too.

I wouldn't be too concerned about your magnet matching mine etc....it is more important to have an idea of what you think should happen and having good zones to trade from...being off by a tic or two doesn't matter much

so today knowing what DIDN'T happen yesterday I had a strong bias for the early trade.....I don't really run hard core stats but I did beleive that there was a 5% chance or less that they wouldn't open and drive it again ...especially in the up direction....


Lots of people get burned when they open and drive so it seems they play harder to not let that happen again the next day. I'd concentrate more on getting the lines right,.....for example, if I didn't have the 61 - 62 as a zone then I couldn't have got the magnet or if I didn't have the 57 - 58 then I can't find a place to cover.

It's amazing how well the market ping-pongs back and forth past the same numbers over and over..

hope that helps

Hi Bruce, always love your take on the day upcoming.... where did you learn this magnet idea? do you have a book or report that one can study up on to learn to view the market like you are doing with such clear ideas and method?

thanks for all you do,
Travis