All it is a theory that says if the indices are negative on a T day there is 80-85% chance of them sometime intraday going back to positive. Fed days are an exception though.
SG66 - If you want to learn the most rock solid s/r levels to trade your signals from each day then learn Market Profile............ Sample MP chart............ http://www.charthub.com/images/2006/09/09/MP.png
Thanks Volente. But what's the reason behind the theory? Is it just through observation or is there a reasoning for it?
It seems that all Texans are good traders (eg: 4re and 5pillars). Ok, that does it. I'm moving to Texas.
I really meant the above 2 posts as a compliment in case anyone misinterpret them. They are good traders.
Bill, Thank you, I take that as a compliment. I have a brother that doesn't post any of his but I can honestly say that as far as calling the market swings and all around T/A he is the best I have seen. He is pretty cocky though and it gets him in a bind at times but he is very ggod. I plan on keeping my son interested in trading and maybe I can make him into a Tiger Woods of trading. He can pick out S/R and some patterns but trading live kind of messes with his head... Good Luck with your trading as well, Gary
4re..........let's tick cocky brother off....ask him if he can get within 5 ym points of apex every time 100%......... he will understand exactly....the question....most can't..........tqpg....