Archive for the ‘Pattern’ Category
August 16th, 2010 | 
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Good trade and bad trade
This picture tries to sum up my setup. Had one good short entry that I did not take (was not trading at that time). After that good one, I got a not so good long entry that I took. Got the signal to close it and didn’t close. The market sold off hardly and I added more long positions (stupid decision, initiating a TILT state). In the last push down, I got stopped out and then the market started a nice rally… without me.
Lesson learned: DO NOT force entries after you missed a good one! New good ones will appear later. Must be patient.
Tags: Medium term down trend invalidated
Look at 1124.50 level (see this post) for possible short entries.
Medium term trend
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.
FED announcement and Market Delta
One of the amazing features of Market Delta software is the footprint indicator. Right at the FED announcement, we could see the HUGE sell orders coming into the market.
Delta Flush long setup
After an extended holiday, here I am with a nice example of market makers running stops. This happened on Friday’s session.
Low volume lead price into recent low, which was taken out. We got a spike in delta right below the low (desperate sellers getting rid of long positions). After that, volume increased hitting the ask.
Delta Flush short setup
Nice short setup. Price was pushed up without volume, and just above last higher high, a bunch of stops were executed in lots of big resting (limit) sell orders. Good market maker work! 
Detecting medium term trend reversal
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.
OTF distribution
Couple of up days without up cumulative delta. Other time frame traders (OTF) acumulating short positions. Easy to see AFTER happened! LOL!
Volume confirmation:
