Very nice commentary. This is one of most valuable aspects of this thread, IMO. By following your analysis, I was able to confirm and validate a number of ideas that I have been starting to use in my own trading. Many thanks.
ok so i exited at 971.75 15:25 bar is (66, 81) stop below and have officially thrown in the towel on the day and will proceed to have several alcoholic beverages. you could reverse and look out for support at the 50 stoch...but i quit for the day. no mas.
I was wondering where the tape is today? I see white space on the 30 min and a very very slightly sloped tape on the 60m ? I am assuming a rocket this morning from around 10:45 to 12:05 ish? Or is that incorrect ? Would the rest be considered slalom territory? If so, what would be the change mode indicator to reverse, 5 min macd xover points ? I am having a hard time integrating the stoc(5,2,3) to use today. At what point in the trading day would the conclusion be made that this is slalom territory if indeed it is?
someone may have already suggested this but I think what Newby is trying to suggest is this you make all of your trading decisions based on the 5 minute- very important because focussing on the one can lead you very astray- but when ou are looking at the formation of a rocket starting to take place look at teh 1min macd. it will show you micro cycles of A/D and help you time your entries to keep you from getting burned
You have to understand that the mkt is not in trend, it is range bound. So, it is better to play reversal or support/resistance of ob/os condition using stoch and keltner channel or trend lines. Also, it is better to use lower level for example - stoch reading (70) or (35) to enter rocket, as it is range bound (80/20 is too late to enter). You can use rocket in the opening mkt and before close, but make sure higher period like 10-15 minutes are going same direction. Jack's rocket method works fine when the whole mkt is in trend. It is also limited by how many rockets one can take it in a single day. That is why Jack is trying to teach if rocket fails do wash, then try to enter reversal. His vdu and trend lines break is the key to enter rocket then slalom then reversal then slalom again.
To all frustrated rocketeers. I believe that Jack has mentioned that this is summertime. Very low volume. Rockets are fast paced trends and therefore volume dependent. Low volume trends should be played as icebergs. If you are very new beginner, now would be good time to print out some posts, construct a binder, make some flaw cards, draw a sequence chart....and chill out until after labor day. IMO, icebergs are the only way to go right now, unless you are expert. Regards, Oddi
Oddiduro, where are you coming up with the idea that index futures are in a period of low volume? I see no material change in volume on either a daily, weekly or monthly basis throughout 2003.