Gentle Trader

Archive for the ‘Ideas’ Category

Look at 1124.50 level (see this post) for possible short entries.

Short inventory created since 1140′s are still opened, so medium term trend, in MY OPINION, is still down. This could reverse this week if this inventory is cleaned out.

This is only a preliminary study I’m doing in my research to identify medium term trend reversals.

Using 350k volume chart. Cumulative delta divergence indicated the possibility of trend reversal. Price confirmed the reversal in a triple top pattern. The 1100 level was an excellent region for shorts.

For those of you who doesn’t know the meaning of delta, I’m about to write an article about it. For now, I would say it’s the difference between the trades executed at the ask and the trades executed at the bid.

Using this concepts, trend is still down. Let’s see when/if the trend reverses this week.

Not trading it yet. Just studying right now.

In one previous post I tested Fulcrum trader’s setup. Last friday this setup would have generated a good short entry.

Browsing the Traders Lab’s forum, I’ve liked the trading ideas of one of  its most active users, called Fulcrum Trader. He uses a Renko 3 ticks chart for ES and a Volume Break Down indicator (cumulative for the day) from Market Delta software.

Nice sell signal today early in the morning when the market opened.

Just testing new ideas regarding trade setups. Using the “Volume Breakdown (Cumulative for the day)” and the “Up Down Volume Ratio Slope” of the excellent MarketDelta software.  Very nice signals after extremes. You can see in the following chart that just after the 1136 break out, when ES reached 1138.5 for the second time, we had a clear bearish divergence in these indicators.

MarketDelta or Investor R/T users can download this chart configuration here. But beware! Indicators work just when they work !