Registered: Oct 2011
11-17-11 02:10 AM
I have traded the ES, and it really does not matter what you trade. Just pick one contract/stock and stick to it. The 6s have had great range lately.
OK, as to liquidity, again, the whole idea is the fundamental concept of supply and demand. What I try to do on the MD Trader/Dome/Matrix/Price ladder, etc. is to figure out 1) which side is in charge and wants to move the market and 2) in order to do that, how/where/when they are going to find the liquidity to do that?
Take a look at the attached MD Trader from the other day on the 6E: now, just because size is stacked on the ask does not mean there are more sellers and the price will go down. In this case, it turned out to be that way, but the key/hint is the fact that HOD was 1.3819! Do you understand why thats an important hint?
Take a look at the attached basic chart for those who use charts: do you see how it correlates to the size stacked on the ask at the same level as the last swing? You bet it traded down to 1.3796 and further!
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