Thursday 12-20-07

I'm thinking that the 1469.25 price is going to be important resistance overnight tonight and tomorrow because this will be the second day that it's the VAH in the ES...

I really like this tri-colored 10,000V chart. It clearly shows the volume/action relationship between the overnight and first 45 minutes of RTH trading. I think that it gives a great perspective.

very nice charts DT, the tri-color is a nice visual enhancement, can you post one of the NQ's as well ?

quote:

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Originally posted by pt_emini

Double top may have formed in the NQ's

Took a short in the NQ on that last retest

NQ 2080 line in the sand for now...

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pt - when u posted you shorted the NQ i took a look at my 10k ES chart and drew a linear regression from the low on the chart to approx where u said there was a pull on the NQ (approx 8:41cst)

i then waited for the CO to go below its zero line and got short on the ES...it was much later than u but it still worked out for me

thanks for the heads up

i'l post a chart and hope it doesnt post 3 times like yest :)

[file]12_20_07_ES_pic_1.jpg,126,,0[/file]

congrats Gio... glad it worked out for you.

notice the divergence on you indicator comparing the high from yest afternoon to this morning's high.

quote:

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Originally posted by pt_emini

congrats Gio... glad it worked out for you.

notice the divergence on you indicator comparing the high from yest afternoon to this morning's high.

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thank you,

simply put, the indicator is the Moving Average Convergence Divergence indicator (MACD) applied to the Accumulation/Distribution Line (or money flow)

by that divergence, i guess, it meant there was distribution taking place at the end of day yesterday or early this morning

its us against them :)

from what i see on that chart, your indicator makes a nice directional bias indicator

quote:

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Originally posted by pt_emini

from what i see on that chart, your indicator makes a nice directional bias indicator

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Well here is my trade this afternoon

Nothing mysterious about it, anyone could of followed it with the indicator provided and

[file]12_20_07_ES_pic_2.jpg,126,,0[/file] my simple rules;

1. anchor linear regression tool at msh and msl
2. wait for cross of LR slope
3. wait for zero line cross of CO indicator
4. price cross of ATR tool

What do you think about my comment of 'accumalation in this area'?

Does that make sense to you guys? I'm open for suggestions and comments

Would any of you know what would be the approx equivalent of a 10000V (10k) chart of the ES
be to a volume chart of the NQ ?

I'm thinking a ES 10k chart is close to a NQ 3k chart..any help would be appreciated

The reason I ask is because I'm trying to find divergences of the two indexes in the same volume charts

thx

quote:

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Originally posted by gio5959

Would any of you know what would be the approx equivalent of a 10000V (10k) chart of the ES
be to a volume chart of the NQ ?

I'm thinking a ES 10k chart is close to a NQ 3k chart..any help would be appreciated

The reason I ask is because I'm trying to find divergences of the two indexes in the same volume chart

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So much of this is a matter of personal taste and what fits your trading style. I find myself stacking the charts vertically then tweeking the frequencies to get them to line up with each other.

3000V would certainly work, you might take a look at something around 2000V in the NQ as it will give you a little better swing definition. Anything below 2000V in the NQ is going to produce a pretty fast chart which you may find to fast to trade with.

Not sure if you can have tick charts, but you might look at a 600 tick in the ES as compared to say a 250 tick in the NQ. I have found the ES 600 tick chart is very useful.

quote:

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Originally posted by gio5959

Would any of you know what would be the approx equivalent of a 10000V (10k) chart of the ES be to a volume chart of the NQ ?

I'm thinking a ES 10k chart is close to a NQ 3k chart..any help would be appreciated

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The way that I do that is by using the ratio of the total volume for the day for the 2 contracts. So today, for example, ES traded 1,996,306 contracts and NQ 363,950. That gives us 5.5 ES contracts per NQ contracts which makes a 1,818 contract NQ chart equivalent to a 10,000 contract ES chart. I normally round so I would make it 2,000V on NQ.

quote:

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Originally posted by day trading

quote:

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Originally posted by pt_emini

very nice charts DT, the tri-color is a nice visual enhancement, can you post one of the NQ's as well ?

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I'll try and make sure that I do a 2,000V NQ and a 10,000V ES at the same time tomorrow (Friday) so we can compare side by side.

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PT and DT, thank you for your information - thats what i was looking for

BTW, looking back at yesterday's NQ 2k chart i see there was a nice short 123 pattern when bruce got short.

And, at approx from 11cst to 11:54cst there was a nice long 123 pattern on the NQ 2k when i got long on the ES

Im not sure if using one index as a proxy for another is valid but i will keep an eye on that

thx again