Exposing Ideas to the Envelope of Serendipity

Contact moo at: bluechipbulldog@gmail.com

Thursday, April 16, 2009

why /ES range is important to me

I got an email asking why I post /ES the estimate range. My overall view of the market in this time period in two words is : range bound.

I use the /ES as my barometer to when I enter a trade. I establish my /ES estimated range for the day and it will be a factor when I enter a prospective trade whose, issue moves in the same direction as the overall market.

Additionally, the market is slow moving these days, meaning the VWAP is flatter and relative volume lower, but at the same time I am seeing large amplitudes above and below VWAP and this condition makes it great to day trade. Trading in "chop" is usually deadly if stops are not very strategic and you are willing to suffer sharp swings.

However, using CCI, and the estimated /ES range has overall been successful for me in this trading environment.
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