I was thinking today about the 50% "rule", and how it could have saved the early longs of the day a lot of trouble
You're welcome to move on -- or back -- to this, and hinges, whenever you've become comfortable with the whole demand/supply thing and have learned to recognize and avoid chop.
I feel I can get the sense of the Line+RET issue, still have some issues with the chop I have to deal with. I will post here some thoughts that come up during the day but that are not compatible with the bride´s thread. Thanks.
Points to focus at the open. After finding strong selling at 406, buyers have been unable to make a HH, but sellers were unable to make a LL either (hinge roams my head!, but it not price filled so I am not really sure). Whatever it is the name of that formation, it has an apex around 400, what about odds!. So the point of interest above price is 400, where buyers found R just an hour ago. If sellers keep pushing there is of course the 50% level at 72 to watch out.
Since trend channels are of course diagonal, the upper and lower limits will increase with the passage of time. The upper limit of the 4yr NQ channel, therefore, is currently around 3440+/-. Given that there will be errors in a 4yr-long line, small though they may be, those errors may amount to 20 or 30 points. Traders are therefore advised to be extremely cautious at these levels, particularly when it comes to further upside. FYI, the mean for this current channel is around 3200. For the ES, it's around 1600.
And I was thinking there was a new normal . I read somewhere that P/Es are very cheap and this could go through the roof.
Well 404 held just fine . Now we are stuck in at TR between 11 and 21. Lets see who can reach the extremes first.
Buyers are pushing and already reached 21. Will they be rejected or will the emerge victorious towards new highs.?