The week starts out 'interesting'. Gold is only a few cents from the 'magical' $1600 level. I think the only magical level is $10,000, and the musings on when that gets taken out. If it does, and the moves were proportional, that prices gas at the pump around $30/gal and crude around $400. Imagine food prices then. The Swissie is exploding, and the EUR/CHF just set another new record low, as parity is now the talk. And this has our futures down a whopping 1.75 points. Wow, pretty scary, the ES down 1.75 points.

1.46 dbs is pretty much what I see....

'Normally' I never, ever fight a trend day. Today, though, it was right into a key area at a key time, and even if the trend is now up (I think we will likely be at new highs soon), that area 'should' (read: might/could) produce an intraday reaction that is tradable. So, if it gives me something, I may trade it. When I see them move out of risk like gold and the Swissie, even better. Yet the ES keeps rising. Fortunately it hasn't given me anything on this second go here. The first go was an easy entry, and an easy read for getting out, likely somewhere in the B/E area. No harm, no foul so far. But, despite the convergence post, I just can't see this selling at all in the RTH...

Chart update.

Al Kamego

Gold and Swissie still selling. I can't imagine what is holding this ES up...

beauty, albert.....I'm all out of votes too

Originally posted by albert

Chart update.

Al Kamego

Click image for original size

aapl has traded in a 5 dollar range all day? wow

Finally?...

Now, if this is to sell at all, they shouldn't come in here at this 21.50, or at least not for more than a few ticks. But, I think they will...

This is soooooo setting up for a big overnight drop...

I guess what I am saying is that not every time price hits a line, or lines confluence and price hits them, it's an area that produces a potential trading edge. With experience one can make an attempt at filtering out these areas that just don't have the right look to them. I'm not really talking about subtle, almost invisible variations here, I'm talking about 'obviously has potential', and 'obviously looks totally wrong'. This is frequently something that can be seen by eye real easily, but is very, very hard to program into a computer. I wish I had a chart example off hand for you, but I don't.

Originally posted by tx_ches

Jim, what do you mean when you say "our eyes would say the geometry is not good." How can geometry be bad?

I'm not convinced the algo's are using the same median lines as roofer all the time. On the QQQ's, I drew 2 other sets before I saw roofer's set and even after I drew another set. So all together there were 4 sets with lines going into his areas. The algos could easily have programmed in 2 of them without using the more minor swing low that roofer used.

How heavily do you think the algos rely on measured moves? It seems like I see a lot of median line sets that capture a measured move. I wonder if that is what the algos key on when it is looking like they key on a median line set?