topic of S/R caught my attention Sulong. Thought i would attach a chart of the 26th on the nq for a different perspective. Casey
I can see the wisdom of doing this, and I do have them within easy access, and try to keep a half an eye on them. My problem being that I get information overload fairly easy, and then get confused on what is that I'm looking for, and then what action I need to take. As time goes on tho, it getting easer for me to take in more information at the same time and make some sort of sense of it. The journey goes on. Thank you
Casey, I'm sorry but all I know about candles are full bodied and long tails. So I'm not sure what bullish engulfing means or looks like 4 bars before your bullish engulfing, is that a bearish engulfing? Anyway, by "different perspective" do you mean candle pattern?
Yes by different perspective i meant candle pattern with underlying volume. attached is bearish engulfing pattern on the same chart. The learning is a journey as i have found and we have similar interests Sulong. Just because a pattern occurs doesn't mean much. But sometimes it is where and when it occurs that matters. In this case(bullish engulfing) the pattern occurred near the S1 at 1525 on the 26th
Exactly. Keep it simple. On a day like today, you look for one thing: failure to make a new high. As for what to do, that's where probability enters the picture; exactly where to enter and what type of stop to use are details. In the first regard, the YM telegraphs a message. In the second regard, when the ES and NQ follow suit, you can be prepared to act as soon as the bar following the failure.
True. You'll find engulfing candles all the time in bases, but they don't mean much. Note here, however, the long marubozu with heavy volume. Since there's no follow-through, this suggests a selling climax. When that is tested at 0950, volume is much lighter, suggesting that selling is exhausted. So whether one enters there or in the retracement arc that you've underscored is immaterial, at least in this case. However, I don't show S1 as being at 1525 on that day. How did you arrive at that figure?
very observant Db, my mistake , that S1 was for the previous day(the 23rd). I should check more closely as i don't want to lead anyone astray. I should say that my main involvement is with the ES and i'm trying to follow Sulong here on the NQ . Casey
I should mention some thing about reports tomorrow. durable goods orders at 8:30 FOMC at 2:15 I usually don't pay too much attention unless the report has a star next to it. I get the calender from here. http://mam.econoday.com/calendar/US/EN/New_York/year/2004/month/01/day/28/daily/index.html hope the link works
<<Note here, however, the long marubozu with heavy volume. Since there's no follow-through, this suggests a selling climax.>> noted, thanks, benefits of discussion