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.

They got lots of stops now, if my read is to play out, it should snap up hard any time now.

Wow, color me shocked. Real sellers? A sell into the close on a Friday? Wow.

watch it snap to the high...

Like I said, real sellers into a Friday close? Hah. Nothing but a trap, as I suspected. Get 'em in, and snap reverse it and trap them all.

I can't wait to see if they explode it on the cash close...

Like I said on all posts...

Originally posted by jimkane

I can't wait to see if they explode it on the cash close...

One tick from that 42.75 high... These guys. Multiple stop sweeps, as expected.

What an entire waste of most of a day. They did a little fake up, a big fake down, a snap up to, as rat suggested, the high, then back in to the middle of the range. So, other than messing with some stops, they did basically nothing for the last 4+ hours of the day, which, lo and behold, is about what they did yesterday. I guess it's primed for the big up Sunday night GLOBEX/Monday...

Okay, well, that's it for me. Such a boring waste of time after the first few hours... Oh, well.

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?