Out of curiosity - did you cover these for a profit when we took that dive Thursday or are you still holding / looking to add all the way up to 3110?
1) Just Truncated ES numbers 288 is 3288 2) Google Auction market theory. Many books, sites & videos that can do a far better job explaining than I can. Try to relate prices back to something you understand like the prices of oranges and human behavior in buying at certain levels 3) Good structure is a normal distribution of prices, Thin tails at the edge, with a fat boob centre. Small boobs (blue) get built with supply and demand, sudden changes in supply and demand shift prices to build boobs further away. But then the market repairs stucture, doing back tests - infilling PA etc. This converges to a larger macro boob (Yellow). See how the larger macro boob (yellow)tends to a normal distribution. Each market has its own character, some will trend strongly with no looking back, but each will hit balance at some point.
I suppose. I have no problems understanding why the 50 % retrace works well quite often as markets by their very nature retraces. 50 % is easily programmed, identified and watched by many. I have no experience with the other esoteric Fibonacci levels/projections as it seems too random/illogical to me. Besides, you get so many levels on your charts that something is bound to stick by the end of the day/week. And if that's the proposition you're left with - might as well using something else for signals. IMO, of course.
In my work, when gaps are confluent with a Naked POC (Point Of Control), a "gap play" does exist when the appropriate directional is triggered. Gaps and Naked POCs in my work, are magnetic price targets individually. Confluence adds to likelihood. Distance from current pricing, how long the gap has remained unfilled, and of course market environment are all factors to be considered in real time that affect as well. Additionally, while gaps and naked POCs are each standalone price magnets, the mentioned confluence has a tendency to act as support or resistance... with larger gap fills having less ability.
Guys - attached is a great article with excerpts from a new book that just came out called "Flash Crash". It's all about a London-based trader who came up with a really slick bot that he designed to beat the other bots in the ES market. As a result of his efforts, he pulled down about $70 million....before getting caught. The book has gotten all 5 star reviews on Amazon.
Protests on almost all major cities around the US. We could see a big selloff on Monday and beyond. Kinda reminds me of Arab Spring.