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.

shorted .886 on gap on 5 at geometry in QQQ my order was filled at open at 5918 ...

if you do what i do... then you have to be prepared.... prepared for the computers to show their intent... not necessarily where you as the trade want to find them.... note how clear the signals were in SSO... note how experience with the tools played an important factor in the QQQ

Originally posted by roofer

shorted .886 on gap on 5 at geometry in QQQ my order was filled at open at 5918 ...

Cool trade. I have this type trade listed in my notes as a "roofer's gravy trade."

0.886 fibo on gap on 5, 1.127 fibo, SL. I hope I got it right.

Good Trading,

Al Kamego

great to have you back roofer, hope you are healing well. it's interesting how sso is hitting the numbers on the money and spy is loose

Originally posted by roofer

if you do what i do... then you have to be prepared.... prepared for the computers to show their intent... not necessarily where you as the trade want to find them.... note how clear the signals were in SSO... note how experience with the tools played an important factor in the QQQ

Holy cow, roofer, you got it one penny off the high! Fantastic.

Originally posted by roofer

shorted .886 on gap on 5 at geometry in QQQ my order was filled at open at 5918 ...

Notice the bearish 4PT here is the ES. I can't see this going down from here, but I'm keeping an eye on this, and on the ABCD that would form up a bit higher, in case.

watch 53.68 sso/ 133.07 spy for a clue...?

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?