I can not find anything beyond the X\/X on RTL BO and thus became the reason for sentiment change that occurred inside those three bars. A specific bar belongs to a general class we call formations (pt3 formation, FTT, flaws, pennants, laterals). Formation is described in terms of two variables: price and volume. As far as the volume is concerned I am interested in it's change relative to prior bar(s). Where the price is considered I am concerned whether or not there is a failure (to BO, to traverse) part or the opposite of failure (VE, BO) part. Therefore, the reason for change is (I think) always described using the price and volume variables. Having looked at those three bars under every possible angle I can think of, I couldn't find anything else as a reason for change. Can we have another clue please ?
Oh well.... up over a point today after I sold it last Friday for a very small gain. I am just nervous of earning reports. I have been nailed twice on POSITIVE earnings reports resulting in dramatic losses. I don't quite get it, but whatever the case, earning reports result in unpredicatable behaviours in stocks. So though I might have gotten a nice gain today, I think I will will stick with the "not trading stocks for a week before earnings" rule..... JF
I continue my work of reading through Jack's stuff Spyder posted at the beginning of the futures journal. SO much info, so little time! Anyway, I think I am beginning to understand better Spyder's comments on context and the P/V relationship. I mentioned a few Macro context items, but he mentioned flaws and formations. Just to see if I am on the right track here. 1. Use the jokari window as your basis for all interpretation. the P/V relationship tells us everything we need to know about WHERE a stock MUST go next. 2. However, there are certain "contexts" within a channel which affect the way we interpret the P/V relationship. These contexts include FTT, BO, FBO, and Flaws (probably other things I am not mentioning. I really think I am starting to understand (and I stress STARTING) people's ES charts after they post them. I looked at everybody's charts from today and for once it seemed almost simple..... almost What I need to do now is learn to recognize the different contexts. I do not know how to identify flaws especially (though I find myself getting really good at watching the 5 minute fractal on my positions and being able to tell where the stock is going). I also am getting better at drawing channels. However, I need to continue to read so that I understand the different formations, how to identify them, and how they affect my interpretation of the following price and volume signals.... The adventure continues.
I felt the same way about today. I think it must have been an easy day to follow... Doing my first tentative MADA I only got faked out on 2-3 occasions. More difficult to deal with was the mental energy, I quit due to exhaustion at 2pm ET (11am my time). I suppose that level of error is what you get without using the finer tools. I would post a chart if Windows hadn't crashed and wiped my annotations
I was never nervous of major reports and FOMC announcements. I don't trade them. What is there to be afraid of ?