Here we see a transition pattern in the euro e-mini futures (6E): high momentum/volume selling led to a drying up of selling pressure (click on chart and note decreasing rate of change in cumulative Delta; bottom row at bottom of chart) and then an influx of buying interest on renewed volume. These transition patterns work because traders caught in trend positions even when trends dry up have to cover their positions, leading to nice reversal moves.
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Just curious what your opinion on stock market patterns is? How much should we pay attention to them? For example, a recent pattern in the markets is evident on the S&P 500 Spyder (SPY), suggesting a Gap Up tomorrow morning and a return to the $111.40 price level by end of traduing day on 12/11. A chart I posted supports this... What do you think?
Brett, are you suggesting that players in these contracts are independently shaping the pattern? Action in currency futures markets is hostage to the vastly larger OTC spot and forward markets, so I don't see how this pattern can be anything other than a micro-lagged echo of that.
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