No one else did it, so I'm kickin' it off.

Okay, the ES shook 'em up, retested the area (but not a new low), and is now at a new high for the move so far. Watch the levels now.

Gotcha. That makes sense. I appreciate the guidance here and look forward to learning more.

Originally posted by jimkane

Well, when you read what I mentioned about 'context' on the one page I said and the time it takes to develop skills at this approach, I discussed how long it takes to get a handle on 'context'. First you get the basic technical skills, and you develop 'context' by experience (and some guidance) over many, many years. It's not something that lends itself well to regular teaching lessons. So in this case it is sitting on a big area. It's a low probability event to bet against that (right now, immediately, unless you have a specific reason to think it will fail). Like I said, I like to get on board trends that I can see, that have room to run (no bricks walls in front of them). But how the timeframes fit together, where plays can be constructed, that is a topic for hours of discussion. It's discussion I'd love to have, it's one of my favorite advanced topics, it's just not for in here.

Originally posted by JaLee

Yes, that is what I'm trying to grasp...the context.

Originally posted by jimkane

This is a bit too complex to explain here, especially when the action is heavy, but it is sitting on a huge area it is reacting to. A short is a bet that area will give way (or be more deeply retested). Yet the area may not indicate a new high for the move is coming, either. So it's about constructing plays within a situation like that. Given a layout like that, where are the likely movements, what do you think will play out, and then what are the plays for that. If I answer yes or no one doesn't get any feel for how to handle future situations. This is all about 'context' in here, and play construction.

Originally posted by JaLee

In KZ now. Wouldn't the play to be looking for pullback to go short?

Originally posted by jimkane

First place to look, the ABCD level. Where is that? Right here.

Lines, upper KZ, Fibs, it 'sees' the next very-short-term level, checks back, then explodes. Now watch the next level. We would not be watching these for a place to short, we would be watching these for management on a long, according to the methodology.

Okay, the next very-short-term level has been hit.

This stuff is very complex, but fits together so beautifully. I'd love to discuss it, but not in here. The very-short-term levels, they are for management and immediate clues. Jump up a little, get some 'context', and see where you think this play may be headed, and the move itself. The move may be bigger than the play for this leg, or the play may be for all the legs. Many plays can be constructed, that's the beauty of this in another way, it can be so individualized. Some may be done in here, some looking to see if it has a lot more.

If it decided it was done here, I'd take that as a clue they will retest that low multiple times, or move down to the next area.

See the KZ dip there?

I'd think they will want to sweep out all the overnight highs, the highest of which is 60.25. 60.00 and 60.25. That puts it right at a key line. I want to see how it would act there.

Yes, and away it goes again.

Originally posted by jimkane

See the KZ dip there?

Now, notice it's right at the key breakdown backtest line. This is profoundly important in this situation.

Don't be shy about posting JaLee. If you come back to the posts from 2011 when I joined the forum you will see that I couldn't do anything more than finding ABCDs in all directions, yet I decided to post charts and treated it as part of my trading education. Besides, I think we all have a slightly different specializations, rat posts CFDs mainly, you are following ES as far as I know, and I major in FX, especially the Pound. So it will work to advantage of all of us if we cover as much markets as possible.

Originally posted by JaLee

Yes I am very sad that he is no longer going to be posting here. I can't believe the wealth of information available on this forum. I do appreciate everybody's else posts as well. I will absolutely still be reading and learning from everybody here, but since I am fairly new to the KT Methodology I'm not sure how much I can contribute to others; but I would like to still be involved.

Originally posted by MarcinO

As we could all read yesterday, Jim considered seriously quitiing the forum after what has been happening in public area for the last few weeks. Today he eventually decided to quit and asked me to inform everyone about that. Sad but true...

Every user of private area will still have access to it, but from now on we are on our own.
I am going to post as time permits and I am almost sure that rat will do the same. What about the rest? JaLee?