The w4 target shifted some after last night's move.
EDIT 9/23/11 - I have slowed my commentary considerably, finding it time consuming sometimes, and only posted a chart image on this. What was assumed;
1) The trend is down. We just completed a major ABC correction to the upside (see previous posts)
2) Wave 3 in the new downtrend seemed to have completed, indicated by a near double bottom and a race to the top.
3) I established a target range for where wave 4 should end, above.
4) The chart below was a followup showing that the minimum expected target for wave 4 had been reached, and at that time I was watching closely for signs of a reversal.
5) Two charts below, you can see the double top had started to form. I saw there were a large numbver of sellers in that area in both the first and the 2nd hit of the highs, and so I knew other traders were expecting the same thing that I was.
Can you help answer these questions from other members on futures io?
The large red line at the top of this chart is the same as the red minimum target for wave 4 shown earlier. Notice how much intensity there is at that point when sellers some in. It's like they take price moving in one direction and hit it with a baseball bat in the opposite direction.
Nice trade Gary--can you elaborate a little on what gave you the confidence to enter this short? And did you enter it on the way up, or the way down (before or after it broke .72)?
I had a difficult time reading the market the last two days partly due to the extra volatility. At the time of your short today I saw no clear volume indication so I decided to just wait and see. What caused you to pull the trigger on this one?
