Today was another pretty much perfect one for the textbook, here it is: We started out with an upgap of 12 or so points, so after the initial topping around 10 am we had to take care of it and the gap was promptly closed at the 11 am bottom. The perfect time to get in long and just enjoy the ride. Midday top also right on schedule between 12-12:30 and a rather mild drop, that ended just 5 minutes earlier than the usual 1-2 pm timeframe. That was the 2nd chance to get long for the ride. There was a 3rd chance at 1:30 pm when both the BB and the W %R gave the long signal... Note the BBs and the W %R giving very nice signals for timing the tops/bottoms... Also, because the gapclose was a rather big drop, the midday top was well below the morning top. But again, ADU is more a timeline than a level entry....
Today was a classic ADU, following perfectly the timeline and with easy entries by the BB and W %R: We started out with an upgap of 10-11 pts (cash, the futures were even more 18 or so) thus the selloff started a bit earlier than the usual around 10 am. about 70% of the gap got closed when the Williams %R hit -100 signaling the time to get long. (on the chart it only shows -90, but when watching it live, it did hit -100) Both the midday and the end of day tops were mini doubletops with RSI divergences, helping to signal the change of trends. Morning bottom: 10:25 (a bit earlier than usual, but W %R caught it) Midday top: 11:58 (2 minutes early) Afternoon bottom: 1:05 (as expected) HOD: 3:33 (as expected) The selloff after the HOD was stronger than usual, due to market weakness...
The last 3 days were an unusual ADU-SDD-ADU combo with slight variations from the classic versions, so let's have another look at them: Both Wendesday's and Friday's ADUs were very similar. Both days started out with a decent upgap and there was the question of gapfill. On Wendesday we basicly filled the gap, today we didn't. Both days we have the morning tops at 10 and 9:50 then almost identical morning bottoms at 10:30. A bit earlier than the usual ADU timeline's 11 am, but the Williams %R correctly gave the long signal. The midday tops came at 12:30 and 12:15, right according to the timeline with 6 and 4 pts drops. The midday bottom happened in the usual timeframe of 1-2 pm also W %R helping us. From there we rallied although both rallies ran out of steam way earlier than the usual 3:30-3:45 frame, but with a last kick, both days ended up close to the HOD. Again, the similarities were eire. Now about the SDD Thursday. The breakdown of the sideways phase came about 40 minutes early around 1:20, but again, there were 2 occasions to get short when the Williams %R hit zero. LOD was at 3:30, which happens quite often and overnight we had a big upgap, as usual after an SDD. Today we also followed the SDD afterplay book, going even higher after the open then falling into 10:30....