Getting us started. This should be quite a week.

I can't say that I'm not real happy about how this is acting off that bearish ABCD. I'm rather surprised, but real happy. I hope it can sustain. Sorry to sound pessimistic, I doubt it can, but one of these times it's going to crater for me.

Looks ready for another leg down. This is where they like to come in and goose it up, 'cause they know if they don't it could get hammered. Just look to the left at all those lows... Let's see what they do.

CHARTS SHOULD UPDATE ALL NITE.... THEN WHEN JIM SAYS SOMETHING YOU CAN SEE.

Oh, that's cool, roofer, for all those who trade stocks or whatever and don't have ES charting access. Now everyone can see what I am saying, at least. Nice job, roofer. Thanks.

Jim, the broken record. That, alone, is half my point. The repeatability of what I am pointing out. So, anyway, in like clockwork they come, exactly as suspected/expected. My next line (not chart line, written line)? Will it sustain? Did they just bounce it to the first spot? Yes. Is this a clue area? Yes. I don't know if they'll sustain. I don't know if it will roll over here and get all those lateral stops.

I can just weigh up what I think the odds are, see if I can get the reward/risk I need for those odds, and take shots at places I find appropriate. Then they do what they do, and I lather, rinse, repeat, over and over again. Very boring at times, very repetitive, and surely not 'exciting'. A real grind. If trading isn't a grind for you, please tell me how you figured that one out. I only know how to grind. Poker has Michael 'The Grinder' Mizrachi, and in here we have Jim 'The Grinder' Kane. Lather, rinse, repeat. En garde.

My personal opinion, my 'best guess', is that this will not roll down in here.

But 9.25-9.75 is surely an area it needs to contend with.

And I didn't think they'd sell much off that bearish ABCD, and they did.

rat, I'm not sure if I defined them in here or not, but the terms I use are in the AFTC book. I follow Miner's convention. I don't use 'extension' as a term at all. We all know what retracements are. 'Internal' means less than 100%, 'external' means greater than 100%. A price projection uses three points, like A, B, and C of an ABCD. It takes the move from points 1 and 2 and multiplies that by a Fib ratio and adds it to point 3, to get point 4. I also use expansion, which is a two point tool, and starts out like a price projection, using points 1 and 2, but after doing the ratio it adds it to point 2 instead of point 3. This is clearly explained in AFTC, with diagrams, so I refer you back to that book.

Originally posted by rat89

Jim, you once clarified the difference between projection and extension here....I can't find it, and I get mixed up in terms....could you point me to it again?