Making of a method

This thread is very interesting today!

 

Game, if you are making the premarket analysis and identifying valid S/R, trying to surf within the chop is going to cost you a lot of money, and you would be making all the prep work in vane.

 

Among my trades today, which would you classify as taken inside chop vs those taken outside?

 

This...

 

NDX is absorbing negative delta at 35 area to infer absorption of the selling pressure at this level into the Europe Close. So if you are long bias you are watching what happens here into and after Europe Close to decide if a retest of NDX 45 is feasible by days end.

 

Why would you consider it chop and not consider it a trend move that is entered because:

a) The downside has been tested at 28
b) The mp has been tested and price wants to go up
c) The larger LOLR is up so while both 37 and 28 have been rejected, the odds lie in the direction of upwards movement

 

a) The downside has been tested at 28 .(Yes i thought the same thing, but I am asking DB why this was not S.)
b) The mp has been tested and price wants to go up (You are way to close to R to make it worthwhile.)
c) The larger LOLR is up so while both 37 and 28 have been rejected, the odds lie in the direction of upwards movement. (My take on the 5 min was chop after the parabolic drop from 37, and the 60 min did not look very trendy either.)

 

NDX 35 Failed Bid right after Europe Close. So NDX 45 Touched improbable unless and until 35 Reheld.

 

Here is the response to a). http://www.elitetrader.com/vb/showthread.php?s=&postid=3874657#post3874657

 

Thanks. My logic seems reasonable to me. But the argument on the other side has to be respected because of where it is coming from.

I am going to take some time to reflect on this because there is no point in pretending to understand and then missing a trend move in the future and wondering as to why a long off S was not entered when the LOLR was up.