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Combining Pitbull and Pitbull II


Well here it is from today...the first chart shows how we had lower volume on the second push up slightly before 10:30 and there was a lower Tick ( tick chart will follow) reading...classic stuff for me.....my original target was 1436.50 as per the Pitbull II thread.you can see these horizontal lines drawn on the chart ..I had various downside targets and some got adjusted and new Pitbull II setups occurred on the long side which I missed taking but used to cover some shorts...anyway this isn't about me or my trades, I just hope you can see the setup and initial target...

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note the lower tick reading at the same time volume dried up..
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This chart shows the retest to 1436.50 and the other zones that where created as per the Pitbull part II thread...



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this last chart shows the entire day.....all the zones where tested except for the one created at the 1430 area

Fire away with questions if you have any

Bruce
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I count 9 horizontal lines on that chart. Reminds me of Fib extensions; the more you have the more likely the price will justify your thesis as price is bound to bounce of one of them. As they say, even a blind squirell can find an acorn if enough of them are laying on the ground.

Enjoy your nut, Bruce.

Well Aaron if you followed the Pitbull part two thread you would know how to draw the lines and you'd know that there are actually 10 horizontal lines...( if you exclude the thick line that seperates volume from price bars).look at the two that are close together on the first chart of my post....9 out of 10 where filled/tested which is pretty amazing if I may say so myself....so please do your research before you attempt to comment on a subject you haven't even taken the time to understand....In this thread I will only reply to genuine questions that you have Aaron from here forward...as these will help others too... I understand your frustration and embarassment with todays failure to deliver the "goods" once again but won't give you the satisfaction of trying to destroy some good technical work..and some information that can help people for free......
quote:
Originally posted by ahk

I count 9 horizontal lines on that chart. Reminds me of Fib extensions; the more you have the more likely the price will justify your thesis as price is bound to bounce of one of them. As they say, even a blind squirell can find an acorn if enough of them are laying on the ground.

Enjoy your nut, Bruce.



quote:
Originally posted by ahk

I count 9 horizontal lines on that chart. Reminds me of Fib extensions; the more you have the more likely the price will justify your thesis as price is bound to bounce of one of them.



We can make the same argument about any popular price level mechanism, Market Profile and Floor Trader Pivot Points are the most obvious in vogue examples.

I use MP levels, but not in the way most traders do. One basic premise I have about the market process is, what I call the Order Facilitation Process. Simply: the market seeks out new order flow. Saying this another way, the market continuously moves toward points where orders are accumulating with the objective of filling those orders (facilitation).

With this in mind, the way I view the MP levels is as order attractors, that is, orders tend to accumulate at the levels. To a lesser degree, we can make the exact same order attraction price level distinction for the so called floor pivots (S1, R1...). I say lesser degree, because I view the MP levels as more powerful attractors than the floor pivots. I view Fib levels as less powerful attractors than floor pivots in rank of influence.

In a pure sense, Bruce's dynamic bands reflect recent price failure points, thus the term micro-singles. In MP single prints are the signature left when price breaks free from value. From what I have observed in a very short time watching the dynamic bands, price shows a tendency to come back and re-visit the band. I have also noticed, price will stop at the band, perhaps just a pause, but more often price will get stuck in a tight range at the band, and less frequently a simple touch & reverse off the band. This type of market behavior indicates to me there is a something more than just random price action related to these price failure points. One thing I do notice however, price does not act the same at these bands as it does at the well known (advertised) MP and floor pivot points. I will need to study this phenomenon for a while before forming a more definite or specific opinion of what is actually going on with them.

I would like to thank Bruce for sharing this technique with everyone here on the forum
thanks for the support and feedback PT...I'm glad you are getting something from the ideas

Bruce
did you see how the unfilled band at a price of 1430 from Wednesdays trade got filled in today?...that was cool..just an fyi

bruce
I know it has been explained, but I actually don't fully understand your levels. That being said, I think BruceM is not blindly trading levels, he is observing how prive/volume, and market internals behave at a level that he has determined may be support or resistance. I was looking at the 39.50 area as well, because it was the overnight high from that Tues morning/tuesnight/wedmorning mixed up session, like I said to AHK in another post, that area of 38.75 made sense as it was a prior swing high from last week....All in all there were numerous reasons to consider that level to be resistance. I think what bruce is doing is the right approach, identify the levels, see how the market reacts at those levels. The other approach is, identify the levels buy/sell on a limit and use very tight stops....so he is not just playing a level because it's there, he's seeing what happens at that level.....please correct me if this is wrong.
Hi Pem,

I'm not sure if we should handle this here or on the Pitbull II thread but basically I am looking at any one minute bar that doesn't overlap any other one minute bar entirely...it is confusing but I think Pt summed it up well when he coined the phrase " Micro -single" I beleive...You know how we have single prints on the 30 minute bars in Market profile...? , we'll these are the exact same thing only they are created on one minute bars...as they form I snap horizontal lines that encompass the entire zone where no overlap took place..I'm attatching a 30 minute chart of yesterday which demonstrates how I would snap the zone on this time frame....the area in between the horizontal lines is the air pocket because only one 30 minute bar had prices that trade in that zone...no other bar did so......you would do the same on the one minute as long as no other one minte bar had traded at those prices during the day...I'll try harder if this doesn't help and I apologize if it isn't clear...perhaps Pt can join us here as he seems to have a better use of words to describe this....

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and here is a one minute from todays trading..there are others on this chart but they where filled in so fast you barely had time to snap lines..notice the high volume on the push out down..and notice how no other one minute bar had traded at that zones prices earlier in the day....so these bands have to be "virgin" territory....

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Please let me know if this helps or hinders

Bruce
Bruce - Your description is very good and is basically the way I see it as well.

If your familiar with MP concepts, then this technique is a natural application/extension of the single print concept.

A volume spike on the break and not being filled back in immediately tend to validate the band....adding strength to it.
Thanks PT...I beleive a subtle but very important part of your reply deserves to be repeated.....
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Originally posted by pt_emini


A volume spike on the break and not being filled back in immediately tend to validate the band....adding strength to it.



Thanks for expressing that and putting that into terms people can understand...also an excellent observation on your part


Bruce