It's true tho' that options are 3 dimensional (direction, volatility and time) - all of which affect price, rather than one dimensional as is the case with futures.
not doing anything until US open now...£ dropped 200pts today...Symetrical pattern palying out really nice,y. If ture we should drop down into 2:50ish time frame but nothing is ever that straight forward in the world of hooya trading :-0
"I'm tempted to go long. " not they best way to trade.....one thing Ive learnt is to be tempted is not enough you have to be confident that the probability is on your side, if you are not you will eitehr gte stopped out for a loss just before it turns or you will close too early. all imo ofcourse
Mully, think the gap up to 4498 will be on the cards in the next two sessions
reckon we go for the upside ones this week close the downside ones early next week. but that would just a guess. at the moment we are on the up and expect the US to follow suit
what I find mully is the gap will be defended to the first point in the session containing the gap where the first attempt at a reversal failed. If that is breached it will get filled up to the openign gap. often the breach happens just before UK close and completes in a gap up the next day.
"why is filling the gap important?" missed trades=missed volume (potentially) so prices get manipulated so the MMs can get as much volume as possible. But also stops are likely to be placed in the gap and thus get when they get triggered it creats a knock on effect until its back at the break out level.