What we see everyday, no matter what the time frame is involved is the power of the trend. What is the market's underlying principle? it's just a sequence of symmetries being completed in relation to the price trend. Look at it that way.
So far today since the 2000 low indicated below the market, in this instance completed 180 degrees of symmetry. Does it occur that way every time? Of course not. Can it go from a valley to valley in the data or valley to peak or peak to valley or peak to peak to complete a form of symmetry? Yes and it does every day. Now by knowing that relate it to price and the trend. You will know the position of the market and the probabilities of what's coming.
We are at the end of this ES Daily forecast from the end of September and in this case note how the market aligned with the polynomial and 3X3.
HAPPY NEW YEAR AND I HOPE EVERYONE HAD A SAFE AND ENJOYABLE HOLIDAY. EACH OF THE FOLLOWING CHARTS SHOULD PROVIDE YOU A SEMBLANCE OF WHAT THE ES PRICE CHART WILL LOOK LIKE. REMEMBER NOT TO GET HUNG UP ON THE MAGNITUDE ASPECT, SOMETIMES IT WILL BE CAPTURED OTHER TIMES NOT. I PROVIDE AND ENTIRE YEAR (2021 FOR THE ES) (WEEKLY), A DAILY (ES) FORECAST FROM 12/28 TO 3/26/2021, A 90MIN (ES) FORECAST FOR THE COMING WEEK OF JAN 4 THROUGH JAN 8TH, AND A 30MIN (ES) FORECAST FOR MONDAY JANUARY 4TH 2021.
TO GIVE YOU AN IDEA HOW THESE Q SUM CHARTS WORK, HERE WAS THE FORECAST FOR THE ES WEEKLY FOR 2020. I INCLUDED THE WEEKLY PRICE CHART WITH THE 3X3 ON IT.
Q SUM USES 3 DATA POINTS TO GET ITS RESULT. SO THERE CAN BE SOME VARIANCE, BUT AT TIMES IT WILL BE RIGHT ON THE MONEY OF THE DATA POINT PEAK OR LOW. BUT TONIGHT FOR EXAMPLE IN THE 30MIN CHART YOU COULD SUBTRACT 3 TIME FRAMES FROM THE PEAK AND VALLEY OF THE DATA POINTS. THEN YOU WOULD KNOW BETWEEN 1830 AND 2000 A PRICE HIGH WOULD LIKELY OCCUR AND A PRICE LOW BETWEEN 2000 AND 2130. IN OTHER WORDS BE PREPARED FOR THESE EVENTS. THAT WAS NICE POP AND SUBSEQUENT 17.25 POINT DROP. I'LL DO A WEEKLY ON AMAZON FOR 2021 BEEFORE THE EVENING IS OUT.
The market is fulfilling the second move down on the 30min chart. The magnitude of this move for the time duration is unknown at this point in time, other than we knew another drop would occur and it would go under the 3x3, see the 30MIN chart above and the following chart: Now is it possible we will continue down until 0100 even until possibly 0200? Yes. More than likely setting a price target might be best in this case. There are better trades coming later.
The issue regarding the magnitude of a move is being worked on. There are two separate theories, one involving a pattern in the data, the other which is totally unrelated involves some mathematical equations.
The market so far has followed the path of the 30MIN chart produced yesterday and posted before the opening. See the following as several charts were posted. The real test comes during the regular trading hours with more market makers and overall participants.