DOW - ES Charts 24/02 - 28/02

ChartMan

Legendary member
5,580 46
Difficult to make any sense of where we're headed except the obvious- leaping up and sliding back.I do see divergence and the "W" bottom formation coming into play today. That "W" could take us into the 8K region.
 

Attachments

  • dow 24-02-03.gif
    dow 24-02-03.gif
    22 KB · Views: 438

ChartMan

Legendary member
5,580 46
ES Vol Chart. Seems to be a lot of peak vol. blow of bottoms recently. Looking closely on the 1 min, they are divergent too.
A Blow off Bottom is a larger than normal peak in volume. In most cases, it will be well above the volume trend line. In this case, the slope was at 6K, and the peak was well above 8K- +40% odd... 3 ticks later the volume has dropped to 2K-60% down, but the price has gone lower. If the lower price is "vailid" or going to be a continuation, we would expect to see an increase in volume. If this trend was to continue going down , we would expect to see a volume of 7K ish.
 

Attachments

  • es 24-02-03 vol.gif
    es 24-02-03 vol.gif
    17.3 KB · Views: 420

neil

Legendary member
5,167 748
CCI

Hi Chartman

It's interesting to note that when CCI crosses above/below zero the index price does likewise.

I believe trading CCI zero crosses is one method of trading used by some.
 

NickW

Junior member
47 0
A zero cross on its own is a bit weak.

I trade cci trend line breaks and I prefer the break to occur around the zero area and preferably with some divergence.

If you look at the first major low at 7650 you'll see a cci trendline break (you have to imagine the line) and regular divergence all helping to give a high probability long trade. The cross over the zero happened a bit later to give confirmation.

Another method is zero line rejection and you'll see that the subsequent pulllback caused the cci to pullback also to the zero line and then reject it. So providing an opportunity to add to or get long again.
 
Last edited:

ChartMan

Legendary member
5,580 46
No go for the "w" bottom then but up 60 odd on the day and a good strong rally after the drop on open. Still in the channel and heading for resistance.
 

Attachments

  • dow 25-02-03.gif
    dow 25-02-03.gif
    28 KB · Views: 358

ChartMan

Legendary member
5,580 46
Tricky trading during the mid session with volume almost non-existant.The early and late sessions had a lot of points for the taking, especially the late session, trading the 100MA break. Almost 20 points on offer ! When was the last time we saw that? :)
 

Attachments

  • es 25-02-03 vol.gif
    es 25-02-03 vol.gif
    21.9 KB · Views: 363

ChartMan

Legendary member
5,580 46
No more up un this move as yesterday's 7920 was tops, followed by anotherone today to give a double top and the sign of the following drop.Not a big drop, leaving us more or less mid-channel.
 

Attachments

  • dow 26-02-03.gif
    dow 26-02-03.gif
    23.3 KB · Views: 344

ChartMan

Legendary member
5,580 46
Moving on up now, and an established up trend is in force, producing an interesting bull triangle formation that should lead to an interesting week next week.We may just get a breakout tomorrow....The target would be 8100 ish.Support 7832, resistance 7932.
 

Attachments

  • dow 27-02-03.gif
    dow 27-02-03.gif
    23.7 KB · Views: 298

ChartMan

Legendary member
5,580 46
ES Vol Chart.Blow off top and divergence to follow for confirmation.Lot of points on the table today.
 

Attachments

  • es 27-02-03 vol.gif
    es 27-02-03 vol.gif
    23.7 KB · Views: 273

ChartMan

Legendary member
5,580 46
Well, we had a small attempt at a breakout, but it went nowhere. Now we have switched tack from bull triangle to uptrend channel.
 

Attachments

  • dow 28-02-03.gif
    dow 28-02-03.gif
    26.2 KB · Views: 224

ChartMan

Legendary member
5,580 46
Just a reminder about the 100MA , using it as support/resistance and confiirmation of direction change. You will normally get two opportunities to exit a trade at or near a top, sometimes three. You will also get at least two opportunities to enter a short from a pullback to the 100MA as confirmation of direction change.
 

Attachments

  • dow 28-02-03 1 min.gif
    dow 28-02-03 1 min.gif
    20.5 KB · Views: 236

ChartMan

Legendary member
5,580 46
Similar thing for ES, but note there is less detail..... whether you trade ES or DOW, it pays to watch both.
 

Attachments

  • es 28-02-03.gif
    es 28-02-03.gif
    26.3 KB · Views: 224
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock