Alright let me have another go at this...... I've given this some thought and this seems to be apparent; Markets cycle between congestions (typically volitility is low) and trends (volitility picks up) during which prices oscillate from extreme to exteme sequentially. During congestion, when little appears to be taking place, a lot is actually happening because some are building positions slowly and quietly in anticipation of the impending trend. A shakeout happens in order to get even more for even less by clearing the playing field of those orders which were placed beyond the support and resistance areas of the congestion in anticipation of the b/o. The b/o takes place because those who have been building thier positions during the congestion are now satisfied that the payout from the impending move is worth the associated risk and now begin adding aggressively to thier already sizable position, driving the price in the desired direction. Prices then move dramatically, further fuelled by those previousely uncommitted, jumping in and establishing positions. The trend has started and more and more get involved which is why trends tend to persist. While all this has taken place the price has been oscillating H/L but when the trend started the price started making higher highs and lower lows etc. How am I doing?
Am I allowed to feel sorry? If you don't know, it is best that you don't, when you do know, you can call me an ass.
EMINI TRADING KNOWING WHY IT IS HAPPENING IS NOT RELEVANT ......KNOWING WHAT AND WHEN IS HAPPENING WITH PRICE IS.....OF COURSE THAT DEPENDS ON WHAT THE MEANING OF IS IS........IS THAT NOT CORRECT?
sulong Even a short time period candle/bar is really a blurred image of what is going on. Do you use tick charts only? -Stephen
1000 I thought about options a while back. Now they just come to mind to protect a long futures postion should a nuke go off during market hours. It was discussed here if you are extremely interested: http://www.elitetrader.com/vb/showthread.php?s=&threadid=52233&highlight=put+protection It is a unlikely event, yet bad things happen. -Stephen
Synthetically: underlying + put = call , They have the same pay-off graph, but you'll have different margin requirements, slippage, commissions. So, instead of buying ES or SPY and protecting them with puts, you can just buy straight calls on SPX or SPY. There are also available options on futures.
That's the whole point. Stephen, you have to ask yourself why you want to do futures and/or options. There are a lot of people out there out to make a fast buck, and have tons of cash, and they think it can be done by playing the market. I suppose the thought is that the odds are more favorable than trying to win the jackpot on the lottery. It is a hard grind. Just as an example, I put in about 12 to 15 hours a day, trying to figure out what the market is doing.
NO MISLEADING INDICATORS????.........who would? i would not want to use anything misleading.........if you think indicators are all misleading that is just not true......sorry.........if u stick witih it lon genough u wil l se e u r wrong....