Thursday, April 30, 2009

Nice Tell for Range Bound Trade


While the NYSE TICK has been in positive territory much of the morning, supporting relative strength among NASDAQ and Russell issues, we've seen no dramatic lifting of offers among large sellers in ES. That has kept us in a range mode, oscillating around VWAP, as noted in the morning tweet. One nice tell that we're more likely to be in a range trade is when cumulative TICK and cumulative Delta are not moving in sync.
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3 comments:

Shivaprasanna said...

Hi Dr. Brett...

I have been regularly reading your posts..

i have been trying to do scalp trading in Emini S&P500 contract since a month.Even in an range bound market there are sub ranges that can be scalped. Is there any indicator to find the exact entry points and wat u think is a good PT and Stop loss in each of the scalps??

Shivaprasanna said...

Hi Dr. Brett...

I have been regularly reading your posts..

i have been trying to do scalp trading in Emini S&P500 contract since a month.Even in an range bound market there are sub ranges that can be scalped. Is there any indicator to find the exact entry points and wat u think is a good PT and Stop loss in each of the scalps??

Brett Steenbarger, Ph.D. said...

Hi Shivaprasanna,

I don't know of any indicator that finds "exact entry points", and I think that search interferes with the skill development needed to recognize and act on unfolding patterns of supply and demand--

Brett