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ES short term trading 5-26-10


Magic numbers today......weekly pivot has not traded yet this week and that is in the 94 area....

1106.25

99 -1100

93.75 - 94****

86 - 87.50

81.25 - 83****

75 ****

68.75 - 70

61 - 62.50

56 - 57.50 ****
got 86 even...trying for that 81.25 now...or else last three out at the new highs ..if they print
perhaps it is wishful thinking but $ticks seem to be breaking down up here
Those previous tops I mentioned preceded the massive sell-off that didn't bottom until yesterday morning. I think it has traders spooked.
the crappy part of this trade is that it seems that the low was more impulsive buying then this current high...tryingto get one off at 84.75 now....that damn 87.50 LOL...a thorn in my side,..how many tests will they do before they trade away from it
hope so piker....so now they will either go get that 87.50 again or I will get my 81.25.....two left with stop at 87.75...
Who knows. Maybe everyone is waiting for someone else to take the lead. If they get some confidence back, they might just push it up and keep it there.

To quote Robert Prechter:

"...the law of supply and demand is irrelevant to financial markets. There are no producers and consumers in financial markets, just investors. So there are no balancing forces on price. The law of supply and demand reigns at the shopping mall because consumers are pretty certain of their needs and resources, so they can reason their way through the decision process. But investors are uncertain because they have no basis for deciding a fair price. In the financial context, knowing what you think is not enough; you have to try to guess what everyone else will think. It's not easy to use reason to figure that out. When everyone faces this dilemma, the result is herding."
now we are stuck in hour range and they know they will break a range...no bias as per volume but sure hope it's to the downside
sold the hour high break....ledge at 84.75...
took three off at 86.75.....last three will stop at the highs again...runners having a tough day today
piker,

I don't know, I have to disagree with Prechter on his interpretation of supply and demand.

There is supply and demand in the marketplace,

supply is created when sellers become more aggressive than buyers and flood the exchange with market sell orders, forcing prices to make discovery of buyers at lower prices.

Demand is created when buyers become more aggressive than sellers and price must move higher in search of sellers.
I think most are refering to the fact that the market has a short term memory and so they watch the swing highs and lows to see if price gets accepted ( spends time) above or below these key areas...

when I think of price action I think of higher highs and higher lows for an uptrend and LL and LH for a downtrend....

there are so many ways to trade so it may not be the best way for everyone...I fade moves so some may be buying a new swing high, where I'd be looking to fade it...usually....

I wish more would chime in with a reply
Originally posted by feng456

Man i've been hoping for short alllllllll morning too. I hate trend days.

So I have a quick yes or no question. When people talk about price action and how knowing it is the 'only' way to trade, do they mean like 'oh it's likely that the price will bounce off of this last 30 minute high' because they know from previous experiences? or am i completely off...