Well, it's Friday...the end of the work week, and also has been a GREAT day for trading. At least in the S&P. (S&P) I have a list of things to show from today's trading that may be helpful for others, regardless of what types of markets you trade or on what time frame. Here we go:
1. The MOB is always fascinating to me. It is comprised of some Gann techniques as well as some Fibonacci theory. I get questions all the time on how the MOB works and how it is calculated and things of that nature, but it is a proprietary tool. The LENGTH of the MOB though has definite significance as far as TIME goes in trading. I've seen many times a market hold on to a level at the MOB until the MOB ceases to print on the chart, and then the market "releases" from this level and moves on. This happened this morning on the 3-Minute ES #F when the MOB from yesterday's overnight session HIGH ended. That's when the bottom fell out of the market this morning, shown below:
2. The down-trend that followed the collapse generated several opportunities. First, and XTL breakout showed up as we fell past the MOB. Once that trend was in place, we pulled back right to the Ellipse for a Type One Continuation trade (which was also a Stochastic Continuation trade if you prefer). And finally culminated in a Type Two Counter Trend trade at the 5th wave low on the MOB.
3. If you missed the Counter Trend trade, after the ensuing consolidation, we had another XTL Breakout...this time in the UP direction. That got you into Wave 3. If you missed that trade, it was followed up by another Type One/Stochastic combination which flowed right into Wave 5. As I type this, the Type Two Sell that set up at Wave 5 is already profitable as well, and looking for the target down at the MOB. I'm not sure it will get there by market close, but at this point, you have to be pleased with the way the day turned out regardless of if it reaches the MOB or not!
Now, I realize that was all shown on a 3-minute chart, and many of you trade much larger time frames. However, ALL of these patterns show up on the higher time frames as well! The only difference is that it takes much longer for the patterns to develop. This same "progression of the trade" shows up with the same strategies in the same patterns regardless of the market or time frame on which you trade. You just have to be able to recognize them when they show up and have the right tools and knowledge to know how to take advantage of them. That's the beauty of Advanced GET.
Now GET trading!
nate mccartney
Thanks for the information. Sort and concise and it makes sense. When I get time I'll try to read some more of your posts. Again, thanks.
Posted by: ComethMoney | November 03, 2009 at 04:15 PM