Life is a purely artificial construct ie: see the buddhist theory of maya (illusion) or the scientific reality that there is nothing solid about the physical plane eg: swirling vortices of light/energy (atoms) so it does matter where price closes on a bar, the same as if I am tracking an animal and it veers right or left, it's actions will influence my actions as the hunter
Each day is a different movie in a series of movies. Like the soap operas. Each little movie tells its own story and is connected to the previous movie. Some movies jump the story line thus you get GAPS. There is a close because each movie ends and people wake up with different ideas about which stock to trade based on how each stock performed in its previous movie. Also new actors come into the movie daily. The tape connects all the little movies together and tells a larger story. That larger story shows trends, support resistance areas, accumulation/distribution areas, markup/markdown areas...etc. Good movie makers might make good traders....who knows?dbphoenix said:
Split,
If you want to see an example of rules 4 and 5 in action look at the emini S&P and emini DOW december contracts. Both closed high on 14th on larger than average range and volume. Up till that point i.e 14th trend had been down. The up bar on the 14th with a high close indicated professional demand back in the market. So, for monday 17th one would expect it to go even higher or in the worst case trade sideways. One would look for demand/supply once the big oplayers and the more of the public come in around 8:00 a.m. eastern time to try and determine if it would trade up or sideways. We see that the emini dow has traded up 58 points above the close on 14th. Certainly enough to have made a decent profit already. The emini S&P has trade a little over 4 points higher than Fridays 14th's high. I expect it may even trade higher before the day is over. But if it doesn't a small profit could have been made already. These are good examples of how one could trade with a profit using rule 4 and 5.
If you want to see an example of rules 4 and 5 in action look at the emini S&P and emini DOW december contracts. Both closed high on 14th on larger than average range and volume. Up till that point i.e 14th trend had been down. The up bar on the 14th with a high close indicated professional demand back in the market. So, for monday 17th one would expect it to go even higher or in the worst case trade sideways. One would look for demand/supply once the big oplayers and the more of the public come in around 8:00 a.m. eastern time to try and determine if it would trade up or sideways. We see that the emini dow has traded up 58 points above the close on 14th. Certainly enough to have made a decent profit already. The emini S&P has trade a little over 4 points higher than Fridays 14th's high. I expect it may even trade higher before the day is over. But if it doesn't a small profit could have been made already. These are good examples of how one could trade with a profit using rule 4 and 5.
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Split,
In addition, on the same e-mini's on October 4 and 5 we see rule number 3 played out. On the 6th and 7th and 10th we see rule number 1 played out. One the 10th and 11th rule number 3 also. These contracts trade so close together many times one can almost trade both on the same analysis. Is all of this just luck or do these rule apply in many cases? I would never say ALWAYS but I think they show up enough to make money.
In addition, on the same e-mini's on October 4 and 5 we see rule number 3 played out. On the 6th and 7th and 10th we see rule number 1 played out. One the 10th and 11th rule number 3 also. These contracts trade so close together many times one can almost trade both on the same analysis. Is all of this just luck or do these rule apply in many cases? I would never say ALWAYS but I think they show up enough to make money.
The only thing with Volume, is the market can go up on 50 lots. it can also go up on 1000 lots.You dont need a lot of volume to move the market.
All you need is price.Like I said in my last post.If you are waiting for Volume to confirm you entry. lets say on 3 or 5 min charts This tells me you are late.
All you need is price.Like I said in my last post.If you are waiting for Volume to confirm you entry. lets say on 3 or 5 min charts This tells me you are late.
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