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A pitbull setup


At the request from Max I thought I'd post a little beauty of a setup that I use....It's probably bastardized from somewhere so I won't take complete credit by any means. It is based on a Market divergence between the emini Dow and the emini S&P when they are trading near the extremes of the day ( the highs or the lows) . I will post some basic charts from a demo account ( which sucks because I don't know how to get text on the chart itself) but I won't give away all my secrets..lol...I have traded this method for a long time and some are improving it which is great ... we can also get ideas from some of the great minds on this forum...a few things first 1)I synch the emini dow to start at the same time as the emini S&P...for me that is 9:30 Eastern..I donot display any other earlier dow data....2) I look for the dow to make a new high ( in this example) but not the S&P...then I look to fade...so I will take a short 3) I fade moves and do not play breakouts so in general I sell strength and buy declines..now this may seem too simplistic for most but it is very powerful...The first chart is the emini S&P..Notice the retest of the 10:05 high at 11:10 on lower volume....at this time the Dow actually made a higher high.( see the dow chart)..then the dow again made a higher high at 12:05 too…but look what was happening to the S&P…again not near it;s highs..look at the volume ( or lack of)on the retests..This isn’t a perfect example but it worked for me…...To back test this, the only suggestion I can make is to watch it for a while....

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Now look what happens when the S&P is making new lows on the day but not the Dow...so the setups work in reverse too and can be used as a way to take profits... I have drawn trendlines...these entires can be improved by adding the $Tick index ( hint - Max) or something that works for the individual trader...some like to see what the Nasdaq composite is doing..you can even add an indicator.. .There is a way to utilize this method while we are inside the days range but that will be for another post. Hope somebody can understand this simple yet effective setup. And if I ever become a vendor ( which I won't ) I'll supply you with 7 years of statements or more...lol..
quote:
Originally posted by day trading

quote:
Originally posted by BruceM

Guy , Is there any way you can move my 9:11, 12:40,12:48 and 13:48 posts from today to the Pitbull Part II Thread? Also if you could move over Pt_emins 10:23 post from today that would help..Thanks..Then to give you more work you can delete this one if you have time...They all make more sense on that thread

Unfortunately that's not possible with this forum software. I wish it was. The best that you can do is just copy/paste from these topics into notepad and re-organize it and then post a new reply in the other thread. If you want to re-use the images then just click the Attach link and you will get a list of the images that you have already uploaded. Sorry I couldn't be more help.



.... moved the requested replies to the Pitbull Part II thread.
quote:
Originally posted by pt_emini

.... moved the requested replies to the Pitbull Part II thread.


Thanks PT!
Thanks so much for doing that PT. I appreciate it.

Bruce