Today's run up indicates a strong push by the other time-frame buyer, and so far buyers are in control in the overnight session as well. I'm anticipating consolidation or minor range expansion to the upside tomorrow. The average range estimate is 12-16 points. When a market is consolidating, I look to fade the moves into support/resistance, which means I'll be looking to short around 1132-1133 on first touch, again in the 1135-1137 area and finally in the 1140-1142 area. By the same principle, I'll be looking to go Long in the 1123.25-1125 area on first touch, and again in the 1118 and 1112 areas. Read the price action in real-time and enter if an entry within your risk parameters presents itself.
Economic Data
Redbook at 7:55 AM (CST), Factory Orders and Pending Home Sales Index at 9:00 AM (CST)
ES - Daily Bar Chart with Volume Profile and Key Levels
Upside Key Levels
Downside Key Levels
Thanks very much for this info it is REALLY appreciated!!!! Bob Cecil
ReplyDeleteHi,can I ask you why do you use infinity future?do you know daniels trading?I like yours trading rules
ReplyDeleteThanks a lot for the work that you are doing, I find your analysis thorough, and most importantly trustworthy and professional.
ReplyDeleteI have learned more from your columns in the past month, that I learned from following an "emini guru" out there since October.
No problem Bob, I'm glad you find the content helpful.
ReplyDeleteLorenzo, I use Infinity for their superior customer service, fast executions and competitive commissions.
Anonymous, which "emini guru" are you referring to? I see a lot of scammers out there myself who provide zero or even negative value. This Blog provides more value for free lol
I am a little confused on your chart, I see 200% at 1132 and 161% at 1133.50, then another 200$ at 1130.25.
ReplyDeleteCan you help me understand where these 200%'s are coming from?
Those are Range Extension levels from a few days ago. You don't really need to focus or worry about those; I just leave them on there to get an idea of previous range extensions.
ReplyDeleteTo keep it simple, you can ignore those and just focus on the Key Levels/Areas highlighted on the chart.
Ok thanks for the input. I guess also your "zones" are just 2 points by default?
ReplyDeleteThe zones are not always 2 points; they can be narrower or wider. It all depends on the volatility and how the support/resistance areas develop over time.
ReplyDeleteOk great info, thank you very much. What your biggest way to tell if it looks like a range day or range extension/open drive/trend day?
ReplyDeleteThanks again for your great info.
Range expansion leads to range contraction (consolidation)...leads to range expansion, etc. In other words, an imbalanced market results in price discovery (range expansion) which brings us into a short-term balanced market (consolidation), which leads to another imbalance and new price discovery (range expansion).
ReplyDeleteBtw, you can also observe the Initial Balance to get an idea of whether the day is setting up to be a range day or trend day; are we trading above/below the IB or within the IB, etc.
ReplyDeleteHi,
ReplyDeleteThanks for your reply, but did you mean a balanced market leads to price discovery? You said an imbalanced one does. :) Also, is there a general rule you use, say 3 days of VPOC near each other results in a price discovery move, etc. Or it is more just a "feel"?
Yes, you're right...lack of sleep is definitely killing my brain this week LOL
ReplyDeleteAnd no I don't have any general rule; just more of a feel for the market and how it has been behaving. I'm sure if I spent some time analyzing the charts, I could formulate a general rule but probably won't have time for that till after March. But I also don't really see an immediate need for it, so it's low on the priority list.