ES Tues 6-2-2015 Rescue Rangers

I am bored to death.

Did anyone see what just happened right after 12 noon in the market.?
Remember the market? I'm talking about the market, not anyone's realization that it was noon and time for lunch.

There were two inside brackets... Brackets ending at 11:30AM ET and 12 noon ET were inside, then BOOMFFF price broke-out and taught all those naughty bears a lesson or two...

Here Is a rule of the markets that will save you money time and time again: It's simple....Never be short when the market breaks out to the upside.


how are you supposed to know that?

answer: you don't know, so here's a better rule: don't take a position inside a consolidation.

inside bars or brackets are proof positive that a consolidation is occurring...that's why the brackets are "inside" the prior 30 minute range, price couldn't get out of the prior 30 minute range, therefore it is an inside bracket..

SO what's a person supposed to do to make money? .

when you see an inside bracket, you place a limit order outside the inside bracket... It's an inside outside job..

I've heard it said that it is better to have an inside bracket that has a small range, but I think a double inside bracket where each bracket range is almost the same size is even better,
WHY?

Protection is PROJECTION.

price is coiling inside those same sized brackets and that just means that more and more people have had the opportunity to TRADE WHERE THEY ARE GUESSING...Both Bulls and Bears are guessing as to which direction the market will move... some of them might just be placing a bet of boredom, hoping to get to the other side of the consolidation for a small profit, Those rescue rangers are Selling the Highs and Buying the Lows...

If you sell a high,hoping to profit on a retracement in price toward the consolidation support area, you get screwed if the market breaks out and goes higher.
If you buy a Low expecting profits on a meander back up to the resistance area of the consolidation, you get screwed if price breaks lower.

Since they know that, they want some protection, and they want that protection tight...so prices just outside the consolidation zone gets loaded with tight stops...

a few ticks above the H of the consolidation, and a few ticks below the low of the consolidation. The range traders need to rescue themselves when they are wrong...
The longer the consolidation exists, the more stops can accumulate.

The more the merrier for the rescue rangers..

Two inside brackets offers plenty of time to make guesses and protect yourself with stops.

Don't contradict the wisdom of the rescue rangers. Their desires to "buy above the consolidation Highs" or "sell below the consolidation Lows," can be a recipe for profits. JOIN THEM... (don't play the range, play the breakout of the range...Use limit orders to BUY above the highs, Sell below the lows... (The only difference between you and rescue rangers is that they will be trying to get the hell out of a position, BUT you, in your infinite wisdom and market savvy, you will ride the fuel of their despair and pick up a couple of points of noise...while the rescue rangers fondle a one way ticket to palookaville.

There was something else that happened today during the consolidation that might have been a tell about potential direction....
Look at a 1 minute chart. the open today was 2104.25... now look at the lows during the consolidation right near 11:30AM... there are two 1 minute bars on my chart that have identical lows, those lows are exactly 2104.25. I have seen this kind of PA before, just like today, when there is an early dip but then price makes it back above the Open, price can come back to that open and just stop right there, no going through it. just stop, when it does, technical traders are making a stand.

Is anyone out there? Anyone,

I'm sorry. I had to do something because I am bored to death.

Here's a bonus question for anyone out there.
what was the name of the movie that Marlon Brando starred in; he was a no-name fighter who threw a fight and complained to his brother that in stead of being a contender, all he got was a one way ticket to palookaville?

As of the time stamp on this post...In the next 5 minutes, the first person to call me with the correct name of that movie will get a 20 dollar bill. You have to call. Posting the name of the movie in the forum will only get you brownie points. So call before the 5 minutes are up., .

Sorry, fans,
The 5 minutes have officially ended and there were no correct callers. nyuk nyuk nyuk

ya well you didnt answer when i called..lol

Had the phone off the hook, duck.

WHat was your answer?.

on the waterfront

i admit i google it..can u guess where i am short?

guess where you are short? in the legs.

2111

in the legs..good one.. no put short on at 12.50 my reason was the rat and it was touching 22ema on 1min chart..

Caught this naughty bear short at 11.25. my reason.. still not enough experience, I got suckered into it!!... ha ha laugh at my own jokes... BUT... I managed to pull out of it positive. Far cry from where i was two years ago... Still a ways to go though. Thanks for your insight Paul. I was Trading while cleaning house... i wish... cleaning the house. Sorry I missed your post earlier. Have a great rest of day. Thanks again.