Here's a summary of how the ES charts look: 120 minute Chart: We had a steady uptrend after the bottom was made on Monday. A pullback from this uptrend on Tuesday is probably likely (BEARISH) 720 min Chart: It looks like the trend line might have been broken with today's trading. We might have a trendline reversal to the downside, but it's not confirmed yet. (POSSIBLY BEARISH) Daily Chart: We have had a trendline break, and a pullback to the highs. Today's trading action shows indecision. There's the potential that we may have a reveral to the downside if we get a down day on Tuesday. (POSSIBLY BEARISH) Weekly Chart: Weekly chart show's indecision this week, with the narrow range so far, but then again it's only been one day. We've had a trendline break here as well, so a reversal might be possible. (POSSIBLY BEARISH) Overall, it looks like we might have a down day today. If you get a short setup, holding it for a trend day down might be a good idea. What do you think?
I noticed that I didn't draw my 720 min chart trendline correctly. Upon redrawing it, the market is still trading along the trendline, so it looks like an uptrend still in force. -- M
What is your goal, to understand what the market is doing or determine what it's going to do? If the former, then you're sabotaging yourself with words like probably and likely and might and possibly. If you're drawing Sperandeo trendlines, then the uptrend within the particular timeframe shown in your chart has been broken. This in and of itself doesn't mean much. If you want to place your self on the correct side of the market, then you're going to have to define - for yourself if nobody else - just exactly what defines a trend reversal and what defines a trend continuation. If you look hard enough for a short setup, you're going to find it. But whether or not that is the correct course of action is something else entirely.
The goal was to generate discussion of the views of the market. To hear what others might think of the market, and perhaps learn something new.
Hi Db, I day trade the ES. I look at various time frames to see where the fib levels are, which I use as potential reversal points, and to get the trend for that time frame, to get a feel as to if I should have a long or short bias to the market. -- M
We approach the market differently. I try to avoid coming into the market with any bias at all, so I can't be of any help to you if you want to find the correct one.
I wasn't looking for so much as the "correct" bias, but more for different views on the market. No one knows for sure what the market will do, so there really can't be a "correct" view, just correct ways of looking at the market. Thanks for your posts DB.