Tuesday, October 13, 2009
Working a Market Sell Signal
A while back I alluded to a trading system that I was developing. It looks for price highs and lows in the market, followed by failing momentum, with a logic similar to the transition patterns I have described.
Note that 1072.50 in the ES contract (above) represents the high bounce from yesterday afternoon's selloff and more recently has acted as resistance during the overnight session today. The system is a seller of ES as long as we stay below that 1072.50 level.