We had an awesome first day with the resistance lines and zones.
Our first resistance line was hit and the market pulled back waiting for the news (bringing sellers into the market). The news pushed down to the open and then like a sling shot went the other way. Then the move was up to our upper zone. Once those stops above the resistance were broken then it was smooth sailing up to the zone.
The first penetration into the upper zone was resistance and then a 5 point pull back (just like the prior pull back almost to the tick). Then we went right up to the zone again and eventually within 1 tick of the high of the upper band.
Well, I'm done SIM trading for the morning. I would have done much better had I trusted my pre-market areas.
Prior to the NYSE open the upper resistance line was broken and price went to the tick to the bottom of the upper zone. Price then opened at 1120.25 pulled down to the upper blue line (as support and blasted up into the zone. 10AM rolled around and it moved within 1 tick of the top of the upper zone. The picture speaks for itself.
Is the bottom of the zone playing support now?????
I said I was done SIM trading but took another point based on my question about the bottom of the zone being support. The answer was yes.
FROM THE MID MORNING UPDATE
Prior to the NYSE open the upper resistance line was broken and price went to the tick to the bottom of the upper zone. Price then opened at 1120.25 pulled down to the upper blue line (as support) and blasted up into the zone. 10AM rolled around and it moved within 1 tick of the top of the upper zone. The picture speaks for itself.
END OF DAY UPDATE
Whoa. The blue lines and upper zone were fantastic. Price came back down at 10:33 to at the tick support in the zone and the went and poked it's head out. It slide back down into the zone and worked it's way to the lower level tried to hold a couple of times and then down to the bottom blue within a tick. Right back up to the upper blue. Again, the picture speaks for itself.
For the fun of it I added SMI4 on the second picture (See Holy Grail 2 Thread). Hmmmmm, further analysis is due.
I got up late this morning and only added the picture to the pre-market post. I have added the zone information below that was in the pre-market picture.
The market moved up off the open to chop around in the upper zone. The 10:00 move started down and didn't quite make it to the lower blue line. The bulls jumped back in and ran it back to the upper blue line and chopped it around hitting the lower part of the upper zone as resistance. The third time broke the zone by the time I got home the upper zone high was met.
The market open at 1129.25 and went to the lower blue line to the tick and then screaming back up to the upper blue line. It paused there to consolidate and then to the upper zone and within 2 ticks of the top. There really wasn't any threat to the bottom of the zone and the next push was out of the top.