answer this if you make money

To identify potential extremes, you could perhaps create an indicator based around the bollinger band concept:

indicator = (close - average ) / standard deviation

If it gets to + or - 2, you either have a very strong trend or potential exhaustion point. You could maybe incorporate some other tools to decide whether to fade the move.

Hope this helps.

 

Damn, I have to give away all my secrets -- oh well.


Here is a 5 day, 5 minute graph of ESU02:

E-mail me for more details on calculating the tangent of the slope of the 75 MA for further information on the statistical implications of this approach (tron@mailzone.com):

 

for the cheetah, i'm thinking fast.
for the venture capitalist, i'm thinking willing to take risk.
for the leveraged buyout, i looked up leveraged and it said

"borrowing of money to purchase company: the borrowing of money to purchase a company, relying on it to make enough profit to cover the interest payable on the loan"

 

Wow GG, that was good. Whether or not it is the answer... it cetinly could be.

Be quick to take your profits using as much leverage as you can.

Nice going! I've really only figured out that...

 

Busted

 

GG: I don't trade daily bars. So sorry. If I did, I would be more inclined to trade levels. Notice how 8800 is holding like a champ in the Dow?

 

Magna,

I have traded before, but not e-mini futures. However, I have been studying them extensively and just wanted to share a very simple approach that works well on paper.

As for not answering the other person's question, I am sorry -- I must have run by it without seeing it. Yes, I have traded bonds, stocks and options. I have yet to trade futures.

aphie

 

that's a start....you've broken the surface...now if you Really want it, keep digging

 

Its starting to get really deep in here. If I wanted fortune cookie philosophy, I'd rent a kung fu movie. If I wanted an incomprehensible puzzle, I'd read some Emily Dickinson.