Edited by NAV, 10 May 2007 - 03:02 PM.
Closed at the lows of the day
#1
Posted 10 May 2007 - 03:01 PM
#2
Posted 10 May 2007 - 03:11 PM
Wouldn't a close at the lows be somewhat negative, so that we gap down and the close the gap during trading
Covered the rest 25% of my YM shorts at 13250 for about 95 points gain.
As i mentioned in my other post, we closed right at the lows of the day. Get ready for a gap-up tommorow morning. LOL, it's the same game again and again !
#3
Posted 10 May 2007 - 03:26 PM
Why gap up? what's your theory behind it?
Wouldn't a close at the lows be somewhat negative, so that we gap down and the close the gap during trading
Covered the rest 25% of my YM shorts at 13250 for about 95 points gain.
As i mentioned in my other post, we closed right at the lows of the day. Get ready for a gap-up tommorow morning. LOL, it's the same game again and again !
Predicting gap-ups and gap-downs is partly science (TA) and partly experience. It's hard to explain it in a few words. But, i will give you a few hints. Open the 5-min chart of YM. CCI 14 is right near the zero line i.e equilibrium. So it could gap-up or gap-down.
Let's consider the gap-down scenario. The Full Stoch on the 5-min CCI is very oversold. So if you were to take the trade of least resistance, would you try to push the oversold into more deeply oversold or try to get it overbought ? I would try to get it overbought, cuz that's more easier to do than trying to get it more oversold, which is more risky as well. If they do gap-down that would push the 5-min into severly oversold condition and hence it is bullish. That's why beware of the early morning gap-downs when the prior close was oversold. It's a bullish condition.
Now also look at the 30-min. 30-min momentum is oversold and positively diverging. Now woudn't it be easier to just get both the 5-min and 30-min oversold conditions releived before making the next downside assault ? I would say "Yes". Hence a gap-up. There are other considerations, which i will keep it for myself for now.
Edited by NAV, 10 May 2007 - 03:27 PM.
#4
Posted 10 May 2007 - 03:45 PM
Edited by Mr Dev, 10 May 2007 - 03:45 PM.
.. .. ..
Mr Dev
......trading is basically a simple operation, but you have to be a genius to understand the simplicity.
.....timing,..... is ....everything !
... remember no guessing visit MrDev!
#5
Posted 10 May 2007 - 03:49 PM
And exactly gap down on oversold is bullish
If we gap up, I think the next move down will have to wait until monday or tuesday
Until Wednesday will be big days - highly volatile
Why gap up? what's your theory behind it?
Wouldn't a close at the lows be somewhat negative, so that we gap down and the close the gap during trading
Covered the rest 25% of my YM shorts at 13250 for about 95 points gain.
As i mentioned in my other post, we closed right at the lows of the day. Get ready for a gap-up tommorow morning. LOL, it's the same game again and again !
Predicting gap-ups and gap-downs is partly science (TA) and partly experience. It's hard to explain it in a few words. But, i will give you a few hints. Open the 5-min chart of YM. CCI 14 is right near the zero line i.e equilibrium. So it could gap-up or gap-down.
Let's consider the gap-down scenario. The Full Stoch on the 5-min CCI is very oversold. So if you were to take the trade of least resistance, would you try to push the oversold into more deeply oversold or try to get it overbought ? I would try to get it overbought, cuz that's more easier to do than trying to get it more oversold, which is more risky as well. If they do gap-down that would push the 5-min into severly oversold condition and hence it is bullish. That's why beware of the early morning gap-downs when the prior close was oversold. It's a bullish condition.
Now also look at the 30-min. 30-min momentum is oversold and positively diverging. Now woudn't it be easier to just get both the 5-min and 30-min oversold conditions releived before making the next downside assault ? I would say "Yes". Hence a gap-up. There are other considerations, which i will keep it for myself for now.
#6
Posted 10 May 2007 - 04:16 PM
So Gap Down would be totally out of the question?
#7
Posted 10 May 2007 - 09:54 PM
So Gap Down would be totally out of the question?
No, i did not say that. The high odds scenario is a gap-up.