The more I pay attention to the charts, the more I find Fibonacci Retracements as a great entry point....there seems to always be a bounce at the 38, or if that fails, the 50%. The trick is finding the base to measure the run...still working on that, but i think the big money has buys on the 50% retracement look at the spy on the "flash crash". Base on 7/8/09 to the top. Market bounce almost to the tick, and then bounced 2 more times on the 50%, then bounced on 7/1/10 near the 62% retracement. The fib retracement could be a good way to either enter or add on to your current holdings...at the very least not to panic and sell without seeing the bigger picture.
+1 Best post on this thread so far. Those who know, know. They aren't going to compromise their hard earned edge to publish why and how they know. Even if they did, the majority would not benefit - indeed most would not believe. Citation please. I very much doubt that he said anything other than the order book in public interviews. At the size he was trading his decisions were based on far higher level methods including understanding how much liquidity was available in the contracts, and how other large interests were positioned, not some fixed formula applied to arbitrarily selected past price data.
Hey Eon Kid -- are you really using The Maestro's software (Stealth Bomber something or other)? I've yet to find an actual review or comment of this. Thnx.
No I dont use this software and have never tried it. It seems it was once exclusive software and now this (cut down) version is marketed to the masses, Dr. Alex Bogdan a.k.a Maestro, abogdan, was one of the developers, I'm sure he has a few unique tools under his desk. http://www.zoominfo.com/people/Bogdan_Alex_418707023.aspx What is important is to understand the underlying principles of what this software is trying to show. To understand the basics of what happens in a true market. As I said I don't know this software, I only found it searching for his site, but my brief understanding is from this http://www.rtnstealth.com/how_it_works/ I wouldn't be surprised if he played for both sides,of course there'd be others who do. The ones whose job is to analyze the DOM and disguise that information, at the same time entering their orders in the stealthiest method possible. With their servers co-located at the CME the information that you get is the processed DOM full of the fake bids and offers. Not to mention that any thorough analysis needs to look at all correlated markets and instruments, such as those on the ICE exchange. Traders sentiment 1 to 7 <object width="480" height="385"><param name="movie" value="http://www.youtube.com/v/PRQbIP0OZvg?fs=1&hl=en_US"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/PRQbIP0OZvg?fs=1&hl=en_US" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="385"></embed></object> For those who do try it send me a PM or if you want to exchange ideas on the DOM.