Son of If You Can Draw a Straight Line . . .

So would we be down here were it not for Carl Icahn? Who knows? Even so, it should be noted that we are at the middle of that old 60-3400 trading range and simultaneously at the short-term 10/9 trendline/demand line. Unless this is the beginning of the correction, and corrections don't generally begin just because somebody says something, except perhaps for a declaration of war, I'd expect a rally from here. But, as usual, quien sabe?

Incidentally, those who are interested in this can look at the stickie (http://www.elitetrader.com/vb/showthread.php?s=&postid=3901369&highlight=stickie#post3901369) for If You Can Draw A Straight Line (You Can Be A Successful Trader), the first 17 posts of this thread*, and/or the first and seventh posts of the Bride Of If You Can Draw A Straight Line thread.

*Specifically, posts 1-3, 5, 7&8, 11&12, 14, 16, so that's really only ten.

 

Thanks a lot, DB - also Niko for his posts and questions...

DB, I would like to ask you in terms of the value of macro trendlines. I don't mean channels here, just the simple common lines as used on a micro level, but maybe on 60 min or higher.

As the micro or intraday trading context or opportunities can be different, do you take the brakes of higher timeframe demand or supply lines into account - or the rebreak maybe as well?

I mean this more in terms of perspective or context, not timeframewise per se...

 

I take everything into account. But I do it before the open so that I have the gestalt in my head. It's all part of prep, like the post I just made above.

 

Those who are up will note that we've been forming a trading range, sloppy though it may be, between 76 and 84, with the midpoint at, again, 80. Only three-and-a-half hours to go. What does one look for?

 

Here's a view from a 5H chart.



Gringo

 

Here's the 5 min:



Gringo

 

And the 1min:



The horizontal lines are not the finest when zooming in from the 5H to 1min. Nonetheless, they serve their purpose to showing where we are in relation to where the market is and has been.

Gringo

 

If one does not consider to trade the range, which seems wide enough, we look for a break out of the range and a retracement.

 

We see a push now. Does this stall at the top count as a retracement?

 

Keep the DL in mind.