Inverted head and shoulders on the SPX?

Discussion in 'Trading' started by fantastic4, Jan 28, 2009.

  1. Hmm, unless you're referring to delta tick in that zone going neutral and not cumulative net delta?

    If that's the case, what's the point of tracking CND? I can play basic price action and wait for price to test pivots aka zones of significant delta tick action?


    The chart I posted above just doesn't seem to jibe with the below

    ehh now i'm more confused. :confused:
     
    #651     Mar 15, 2009
  2. I believe that what you've quoted AMT saying in the previous post is not really portrayed by the chart you've posted earlier, but that's besides the point...

    Like you, I'd like to know whether having the price slice up and through ES=1187 zone where CD diff ~ -90K serves as a counter example to the basic claim of this method (or alternatively, a misunderstanding of the method).

    D.

     
    #652     Mar 15, 2009
  3. Hmm.. it's portrayed 100%?

    The logic is:
    Price will not move past a zone w/o first neutralizing positions (it did)
    CND showed significantly great numbers of net short positions on test of R, indicating shorts > longs. (price rallied 100 pts)

    Only thing i can think of is the late day rally & AH rally trapped many shorts to the point where they couldn't liquidate w/o a huge loss so they held onto it? Or maybe they were already hedging another product. I don't know; I know very little about hedging so maybe the answer is there
     
    #653     Mar 16, 2009
  4. To be clear, I was referring to AMT's description of how his method takes into account the tick deltas inside the 3-4 ticks zone extending from the CD level ($685). Your chart doesn't pertain to that aspect of the quote.

    D.

     
    #654     Mar 16, 2009
  5. (1) CD neutralization
    (2) tick "neutralization"/reversal

    (1) never happened so we don't care about (2)
     
    #655     Mar 16, 2009
  6. Pekelo

    Pekelo

    We are kind of going in the other direction..
     
    #656     Mar 16, 2009
  7. Nice run this morning in AH session......just started to sell the 764.00/765.00 level this morning. My remaining previous 754.50/754.75 positions stopped out at 754.00 after the EU market had opened last night. :) This is the last zone/area to be sold from previously held resting inventory......price above the 767.00 area would most likely trade up to the low 800's, so no selling should be done if we break above 767's with significant initiated buying. :)

    My first targets this morning will be at 761.00 and then next at 759.00 :)
     
    #657     Mar 16, 2009
  8. What is the data feed you are using and the charting you have how is your CD formula written.....is this your own programming?


    BTW....if a person uses Investor RT their SDK can be very helpful. :)
     
    #658     Mar 16, 2009
  9. This looks like a data/computation of CD error to me.
     
    #659     Mar 16, 2009
  10. Targets at 761.00 filled....next at 759.00 and also new targets set for 755.00 and 750.00 :)

    Edit: targets at 759.00 just filled now too. :)
     
    #660     Mar 16, 2009