R1 - 1338 PP - 1333 S1 - 1330 *** While you are watching the market for clues of which direction it wants to go in, pull up a chart of the Advancers and Decliners (separate chart for each category). If you are not familiar with the symbol for the individual chart, please call or email the company that you get your datga feed from. Use the CCI Histogram to display the information over a 5 minute span. If your software allows you to do so, invert the color coding of the Decliners so that Green is down and Red is Up. We will be using this tool to assist us in determining which direction the market will move, in relation to its Previous Open and Previous Close. Best Regards, Jimmy Jam
Notice how strongly support is trying to come in at S1 and take the market back-up, through its previously established range. But having been broken, it now represents resistance. Now what happens psychologycally, is that the Longs have to decide whether they want to continue supporting this position, or bail. This is how we get the movement of price action, and this is what 5 Pillars is referring to when he refers to using his Market Delta tools. I am attempting to help you get similar insight by analyzing the Advancers vs. the Decliners using the CCI Histogram. So far, the Advancers aren't Falling too hard, and the Decliners, while in charge, have stopped their advancement. It is by simillar study and recording of market action that you will develop knoweledge (which is your true edge in trading), not anything else. Best Regards, Jimmy Jam
Long @ 1321.25 S1 has provided strong support. If you look at your advancers you will see that they are in the green, and if you look at your decliners you will see that they are in the green as well. Best Regards, JJ
Long stopped out for 2 pts. currently flat as far as the thread is concerned. in retrospect, using the Adv/Del to initiate a Short would have worked just as well, as they both wen red simultaneously. S2 comes in here at 1326.00, IF it holds, this will in all likelihood be the bottom for the day. Best Regards, JJ
I was thinking of being able to play both sides of the fence and take trades moving into[/] the previously established range (value area between the previously established Open and Close) and moving out of it (as originally stated). I think will stick with that methodology for the time being, as it is going to be the most consistent. Best Regards, Jimmy Jam *** Here is where the short took place according to the rules of selling below the value area (the close of the postion would be at your discretion).