The indicator generally is used to in determining whether a commodity is overbought or oversold, which is indicated by reading above or below the 100 and -100 lines. The general thinking is that when the indicator is over the 100 line, for example, the price will correct to more normal levels between the 100 lines.
This program is one of the finest on the internet and costs a fraction of what some of the famous programs charge. It’s better too, as it comes in both article and video format so the concepts are fully explained. Even after years of trading I pick up new ideas on a regular basis. It’s an important part of my trading program.
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The real question is whether Fibonacci retracements are a valid tool in trading emini contracts. There has been a great deal of debate over this issue when Fibonacci systems began making their way into technical analysis in the early to mid 1990′s.
emini trading chart ESU9 for 7-16-09
Charts courtesy of AMP Trading, get a free demo account and paper trade
Very enjoyable day to trade on the es dow emini, especially the afternoon session, which proved to be profitable. There is no better feeling that being on the right side of a long protracted trade. The morning was a little choppy and I eeked out a few decent trades, and a loser, but the action was fast and interesting.
I was paying fair close attention to the divergence line on the MACD as the market wanted to change directions early on, and I hate to overstay my welcome in a trade because it usually spells bad news, so I was a little slow to get in and quick to get out, when possible.
There were a variety of banking and financial concerns buffeting the market today, and I had to focus on the chart and ignore all the news. Seems the banks we bailed out are making money hand over fist again, hmmm….imagine that. My Dad always reminded me, “your banker is not your friend”…truer words have never been spoken. Apologies to any bankers who are offended, but I’ll stick with my old dad on this one.
CIT appears headed for bankruptcy, and this had the market riled up all morning. JP Morgan Chase posted nice profits, with CITI and the rest of the banking cabal reporting earnings tomorrow. Probably make for an interesting day…just remember, trade the chart, not the news or the economy.
Go Cubs! We need a good second half of the season. I guess I let the cat out of the bag, I am an inveterate Cubs fan.
ES emini contract
Charts courtesy of AMP Trading, get a free demo account and paper trade
Well, you get a hint of good news, or news that is more like “it could have been worse than this,” and the market goes bonkers. I was long most of the day, as most of the real action took place during the pre-trading hours. I don’t have too much to say about todays chart, as the chart really says it all.
ESU9 July 14, 2009
Charts courtesy of AMP Trading, get a free demo account and paper trade
The market made its usual move around 9:30 and that was about it. There were some possible trade later in the afternoon as the price swung back in forth between support and resistance, but I was in a catatonic state by then, as the market once again proved to offer little in the way of afternoon price action. Oddly enough, this particular day the price stayed close to the predicted pivots and deviated very little from the 89 period SMA.
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