One last thing...watch the levels that I post...look for trades around them...I have posted previously what I'm doing so you can look back but that's the gist of it...I identify spots for potential trades and look for PA.
This stuff isn't hard.....
One last note if your platform has Kase Bars I HIGHLY recommend them.
Like a lot of the guys here I've been through the meat grinder
I've spent about a bazillion hours studying charts and trying everything under the sun pretty much and at the end of it realized all you really need is a candlestick chart, patience and PA.
There are other ways but the corny old sayings like KISS are still around for a reason.
Last edited by kbit; June 27th, 2012 at 08:50 PM.
The following user says Thank You to kbit for this post:
t may look like the start of a spider web, but the chart below of the VIX is very interesting and possibly very important around the next move in the S&P’s sideways trend that taunts traders everywhere.
The reason it stands out to my chartist eye is for its unbelievable touch to the bottom trendline of its 4-month Ascending Trend Channel that was drawn before or around its breaching as it seems that this sort of “catch” should not be taken too lightly even though the VIX’s 60-min gap at 19.36 never closed completely yesterday – only almost.
“Almost” is almost never good enough in charting or in life, but in this case it may be good enough to support the fulfillment of the VIX’s latest and confirmed Falling Wedge and its target of 27.73 and one that seems to match the target of the S&P’s confirmed Rising Wedge at 1267 that makes sense in the context of its Descending Trend Channel.
Bringing the VIX’s currently impressive hold of support back to the technical aspect noted about the S&P yesterday or its weekly Spike Top that remained confirmed during the day’s little sigh of relief and provided reason not to get overly excited about the probably brief pop, it supports this technical aspect that remains confirmed below 1324 for a target of 1285.
In turn, the VIX’s “catch” yesterday that supports the S&P’s Spike Top provides good reason to believe that its Rising Wedge will take the S&P down to 1267 and the bottom of top inner Sideways Trend Channel while it provides just as much support, oddly, for the S&P’s Spike Top that really matters and that is the one from the week ending on April 6 and a technical aspect that is so subtle it is hardly noticeable. It is just such an aspect that marked the index’s peak back in October 2007 along with one that shows last July that was not the S&P’s true 2011 peak but supported a weekly Pipe Top from April and May that did mark the beginning of the climb down.
All of this provides excellent reason to think not just about the S&P’s current weekly Spike Top and Rising Wedge, but its major Rising Wedge that carries a target of 1075 and one that is well-supported by the VIX’s major Falling Wedge and its target of 48. These mutually-supporting technical aspects mean that it is highly likely that the S&P will find itself soon at the dashed trendline that marks the top of some of the Sideways Trend Channels shown and the bottom of others right around 1160.
Should the S&P make this 12-18%+ decline in the weeks ahead, it is likely to come on another summer of economic uncertainties here in the US and the seemingly unsolvable eurozone sovereign debt and banking crisis due to the inability of the region’s leaders to act only by looking in the rear-view mirror and not the way to drive, live or guide Europe’s financial system. These charts suggest there will not be any extend and pretend to come out of the EU summit, then, only disappointment about a situation that is being played defensively with the defense being dismal, even though EURUSD’s charts continue to suggest some sort of pop up toward 1.2750 and maybe on expectations around the ECB next week.
Such a potential pop by EURUSD is likely, though, to be quickly corrected back down toward the 1.1700 target of what appears to be a developing Bear Pennant as opposed to a Double Bottom with the potential lack of alignment between its charts for the days ahead to those of the S&P and the VIX worth noting.
Should this occur with EURUSD trading up modestly as the S&P trades noticeably down, it will be worth noting as some sort of change in EURUSD’s status relative to the risk on trade, and one that seems not to make sense relative to the situation in Europe, or it may suggest some sort of an unexpected and explosive move soon in EURUSD, DXY, of course, and then the risk assets as well.
This potential is just starting to show itself in a wide host of charts and thus is difficult to detail all that much outside of noting its possibility along with the likelihood that it will probably be to the downside except for the dollar index that is gearing up to rocket higher in Q3/Q4.
And it is the VIX’s support of the S&P’s Spike Tops that provides an important piece of evidence for what may be some very volatile trading in the risk assets in the weeks ahead for yet another swipe down in the always-tempting sideways trend.
kbit, i'm assuming that range bars, after reading up on them, are appropriate in this YM, possible TF trades. the concept is simple, plus it measures volatility. i cannot find any zip files for NT7, Kase bars.
I think @Silvester17 might have the Kase bars you can use....I remember seeing one of his charts with them.
I've tried range bars and they just didn't suit me ...they are not the same.
You could try Rjays hybrid renkos... I've seen charts with those and they look kick ass....I know those work on Ninja and I think you could do well with those....do a search here, I know people have used them and discussed them.