Es Algo Late Day

Discussion in 'Index Futures' started by pwrtrdr, Apr 1, 2010.

  1. pwrtrdr


    Anyone care to guess/ answer how the ES works in such mysterious ways.

    Example market sells off from 74 area all the way down to 66 in a hurry. Comes complete back from 66 to just about 1,174 on close ,very methodical as if computers ( no emotion) buying back up.

    Question becomes how to identify when ALGO A' holes will stop or is this routine? Because I have seen this SCENARIO several times ( once a week anyway). Been trading ES only 8 months.

    If can get on board with them can make money. Seems like a lock, anyone see this more often than I do ?

  2. I noticed it also. But i know the pattern. Watch what happens closely and define a patten for it and you will make $$
  3. pwrtrdr


    Yes, but happened on low of day, scary to buy here unless absolute sure these nit wits are program buying. ( I say nit wits because just because they trade like that does not mean they make money long run)

    I watched closely, it happens at different times, not necesarily on close
  4. Gcapman


    200 SMA on 60M charts has been solid support

    This is not rocket science.......!!!
  5. pwrtrdr


    SSo you must make about 50k a week then , because if you "figured " that out the ES can handle a couple million thrown at it in instant and taken back in instant.......

  6. Well what happened was price pierced through the open at 1167.00 by watching the price action i could see the stops getting hit. So i figured price was about to move higher since they took out those stops. Secondly volume spike forming a hammer. A good trade would have been long the preceding bar with a stop at 1166. Knowing that if the hammer failed sellers took control back. And lastly if you look at the RTH chart you can see we filled a huge gap from yesterdays close. So if price bounced which it did issued another long signal. Hope that helps. Like i said i saw a pattern in the price that ive seen time and time again that told me to go long.
  7. pwrtrdr



    However I am looking for clues about price formation that trigger me to figure out if ALGOS are in control and how they begin and end.

    I have seen stops go off, reset and go off again at lower levels.

    I think this move was sick because it was after 3:30 which is typically not a place to "trade" a thing
  8. yeah i dont know how to spot an algo. Goodluck with that.
  9. pwrtrdr


    Thanks, basically I had been short, covered at a slight loss at 3:30 because I dont trade after 3:30.

    But seems very strange how it just came back.

    I get your point with stops, but I have seen just as often that people go "long" only to get sopped again, unreliable method.
  10. This wasn't algo; it was squaring ahead of an NFP report on Good Friday. I'd suggest an easier market to trade.
    #10     Apr 1, 2010