Hi Jim,

Thanks for opening this Forum to your students and giving us an opportunity to show our charts and share our ideas.

Here is a chart of todays ABCD's in the russell. I will post a context chart later. Today was one of those days where the market changes direction on Jim's unique Fib numbers, Had you been trading with standard fib numbers you may not have noticed these PTA's. Is it me or is .564 becomming more and more prevalent?

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Originally posted by roofer

bbj...do you have figures based on days that open on a gap.? i believe the percentages are even higher... that is why i believe gap opening days are qualitatively different...in my own sample study back in 2001, regardless of whether it gapped up or down . the high or low extreme in price was made in the first hour greater than 80% of time... that sam-pling was confirmed by the guy from my area who happened to write the gap trading strategy section in stockcharts.com..

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Geo,

Guy (aka daytrading)has written about gaps on this website.
http://www.mypivots.com/articles/articles.aspx?artnum=43
I haven't read it
Data Used
Daily OHLC RTH ES data from 15 January 2002 to 20 February 2004 (529 trading days with 528 gap observations).
I think he has updated the study in 2006.

thanks.. i have taken the class and studied the gap methodology as presented by scott at stockcharts . com.... that is why i have taped to my screen... ''gaps lead to trend days'' thatis my way of reminding myself to be very careful about fading a gap but also to be very aggresive if the gap leads to completion of pattern at jim's pattern line fib.

What a set to use!

How funny, I just sent this exact chart to two people. That was the set, alright, the one I locked in the AM and used all day. But it gets better. Put on a 'natural' set off the daily chart, using the pivots at 12/5/06, 1/9/07, and 2/22/07, but put it on this timeframe. Also add a 1.272 external retracement from the low at 9:46 AM on 3/1 and the high at 14:55 on 3/1. If this is done right you should notice something remarkable at today's low. I'll await your post... Nice work. That daily pivot today was something.

Nice work M, I was just about to post the exact same chart!!

Jim, how about that pivot!!

At least 'my crew' understand why I get so frustrated when people who don't even understand the methodology slam it... What a day, what a day, what a day. As Geo says, it's all about the tools, and it seems like I have quite a toolbox full to work with. At that point it's all about what we do with the tools at hand.

Here is the added set (blue lower //) and the 1.127 accoding to your parameters. Not sure if this looks right. It's interesting how the initial low after opening reacted right in the area where those two lines came together. Anyway, correct me if this chart doesn't look right.

No, that's exactly right. Point is, the early low was dead on my area of interest, and the run up, right off my area, went right to nearly the exact spot I suspected it might for a short opportunity, and rolled right off there. It then used the set for the rest of the day. Just incredible.

Putting a higher timeframe \\ set on a lower timeframe is simply a fantastic tool IMHO. This is a DAILY set put on a 3 min chart, just incredible!! I love to get a good set on a 60min chart and put the same set on a 3min chart and play line ping pong. THis tool is invaluable. Thanks for sharing it Jim!!

Well, one of the prime things I show in a mentorship is my top down analysis and how I build my work on the highest timeframe and work down. It blows people's mind that I wouldn't even consider a 3-minute Russell trade without knowing exactly what my weekly chartwork is, and everything down from there.

thankyou duane i knew it was back there somewhere...