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.

I think it was worth a shot.

How's that looking now? Another read 'nailed' dead on.

And now? Is that insane, or what? Wow, what a monster smoker, dead off the area, discussed in advance. I guess I only emphasize that last part because I still carry the scars of all that mistreatment out in the public area. If they only knew the work we do in here, and what we see... But they don't, and won't, and nowadays I'm rather happy that they don't. It's no longer available to them, even if they wanted it.

ES on frickin' fire! Did they come up with a debt deal? Wouldn't that be something, right at the area they do it.

7 points so far, straight up.

Major line here at 23.00-.50 or so, but this thing is on fire, so I can't see anything stopping it now.

Unreal. What a trade!

Here's the 'news':

http://www.zerohedge.com/article/euro-jumps-news-latest-agreement-between-germans-and-french-market-prices-nth-greek-bailout

Another idiotic Greek bailout agreement.

10 points off the low, straight up. Wow!

SPY 15 minute.
It may have formed a 4PT Bull abcd on the close.
The way the ES is exploding up, I don't think the Spy needs it to gap up in the morning.
I think this 4PT may be occurring in either a w2 or w4 correction but I don't know which.

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?