I've seen this type of action before when looking back over the past sessions. It seems to drop out of the price area then move back, in quite a pronounced fashion, yet picks up little volume in comparison to the rest of the session. If the market is trading within a given price area why would the price suddenly move out then move back in such a short time period? Or are my eyes just playing tricks on me? (which is probably the case) Any advice, thoughts or opinion? Thanks!
Nuance of a Pattern within a pattern, for me at both times trend was down at time of signals. Both of these signals happened cause of weak longs of retail customers. So it is a matter of discovery patterns on how to screw the weak underfunded smaller traders and this happens to be one of the patterns, as I have discovered over 100 patterns of pattern signals. And no, not sharing the rest. So what is happening is a break of recent lows and close below previous lows, now here is the fun part, on early in next one minute bar, market goes up 1-4 ticks, so young trader is suckered into thinking he got out premature and since it is way past the open and maybe down on the day,..maybe? maybe add another contract since it looks like it be holding support so they buy again, and maybe a 2 lot, many of us already have limit orders to sell more as many sold off recent highs from either triple top or bounce off trendline and trend down, this is more of a scalpers' play as most profits are less than 2 points. Many traders are looking at every tick and don't have another one minute up that have more bars in it to see whole view, market drop like a rock often times on light volume and when weak hands again are being stopped out on too small of protective stops, scalpers taking profit or in my case reversing. This pattern happens often. Fun isn't it? HeeHeeHee
Seems like normal market movement to me. 1% moves per day are quite typical for ES. Dipping below and testing another recent low and moving back in the other direction, also normal.
Hey guys, thanks for the replies! Both of you seem to be saying the same thing, only in slightly different ways, which is exactly what I'm looking for. From what I understand the market is searching for extra liquidity to utilize in an appropriate manner, for example sell stop orders to buy? I have a question, if you don't mind. Is it possible to view a collection of resting orders and their size, or accumulated size, at any given price, if so, how? Also, what kind of platform/software would I require, and is there a demo version? Thanks in advance!
Yes, the CME shows depth of book with a level 2 feed. Not sure if the Demo has L1 or L2. http://www.cqg.com/products/cqg-qtrader CME also offer a L3 data feed. Not sure if CQG added that yet. It shows each order at each price level vs size at each price level. https://www.marketsmedia.com/cme-launch-market-by-order-level-3-data-solution/ Bob
Hey Bob, thanks for the response. From what I can gather, after reading through various articles on order flow, this appears to be the way to go if one is going to be serious about the subject. I realise it's not going to happen overnight, but that's not a problem, I'm actually more interested in seeing how the market operates at present. Beyond day trading in this manner, nothing else interests me to be quite honest, and I think an ISA share account (UK) would probably be the most sensible option. Take care buddy!
IMO, Level 3 is over kill unless you have a process for deriving alpha from it or you are a large player looking to sweep markets.
Bob, I'm not really sure what "deriving alpha" is, and I only wish I was a big player (maybe someday - I'll try to control my optimism for now though) You mention overkill?? Logic says the more information the better, obviously not in this particular case. Here's what I'm thinking: A market, buyers/sellers, volume/orders, and last but not least, a price. There's got to be something logical about it at some point, otherwise...what's the point? From what I can garner there appears to be a spectrum, trading the the session at one end and long term investment at the opposite end. The very few naturally gifted people (as in most professions whereby an innate skill is required to make the grade) seem to rest in the ultra short term/RTH session. The opposite end seems to cater for investors who already have the money, but no innate skill (it's how it comes across to me) Then there's the middle...let's not go there, I think there's enough middle bit for everyone, and some. Hopefully you understand what I'm getting at here, if not, no worries. Thanks, Bob.
Hi fordewind. ATR?? Average True Range? If what you're saying is what I'm thinking, then yes, the market does seem to move within certain price ranges...but it changes. So the question is: How to cope with the change? More to the point: Why does the market volatility change?