22 replies to this topic

[SemiBizz]

They are only STICKS... there is a high and low associated with each of those volume spikes. Do not allow the fact the price ended lower or higher to confuse you. All you need to know is that a higher high was made on more volume... you have to look beyond the local price action to understand the bigger picture, and that's why ES is no good. And do not underestimate it when the stick is left (closes) back inside the trading range, that is a heads up that (in this case) higher prices are more likely.... And do not mistake the action at the very end of a session because very often that is a heads up for the next one. I'm not going to argue the ES with you, I don't trade it. But I seem to be doing just fine in forecasting using more robust vehicles....

[OEXCHAOS]

I got the insight on the stick back in the trading range. That's probably one I never would have picked up.

And do not mistake the action at the very end of a session because very often that is a heads up for the next one.

This deserves stressing. That has been a fantastic tell. E.g. the ES had big volume on the downside come in late on Thursday. We saw what happened. Now, Friday was a mess. Big volume both up and down on the run off. The 10-minute looks Bullish, the 5' looks more bearish.

Bigger picture, the Hourly looks like there's room to fall but no reason to get too Beared up. The Daily looks like we have to go visit 1508 again.

Mark

[wyocowboy]

If you want to keep it simple, go back to traderpaul's SPY chart. High volume on a down day tends to mark a bottom for at least one day.