TradeLog: Jan 12, 2010: Three-Valleys, Broadening and ABC

January 12, 2010 · Posted in ABC Bearish, ABC Bullish, CMI, Three Valleys · Comments Off on TradeLog: Jan 12, 2010: Three-Valleys, Broadening and ABC 

Jan. 12, 2010

Today, ES continued its yesterday’s significant patterns: ABC-Bearish and Three-Valleys in their bearish trend. ES Opened near 100% of AB Range around 1133-34. Until noon ES attempted several times to close above the 200-SMA. CMI5 was red most of the day until 2pm. Around 2pm, the first bullish signal was triggered by CMI5m Green bar.

Today’s another major pattern: Broadening Bottom. This pattern was visible right from the open. I thought it was going to be a Flat Bottom Broadening pattern. Around 11am, the pattern made its last failed attempt to trade above 200-SMA and sold off until 2pm.

The late day rally produced another ABC Bullish pattern aided by CMI5 strong green bars.



ABC Bullish

Market Structures

Three Valleys and A River Pattern (Update)

January 12, 2010 · Posted in Three Valleys · Comments Off on Three Valleys and A River Pattern (Update) 

Here is a completed Three Valleys and A River Pattern. Three valleys are distinctly visible in the pattern. After trading 61.8% retracement in to its prior range yesterday, ES sold off in the overnight session (Globex). From the high of 1144, a 100% retracement (river) of its prior range is expected to 1134.


Three Valleys Pattern

January 11, 2010 · Posted in Fibonacci Bands, Globex Pivots, Three Valleys · Comments Off on Three Valleys Pattern 

Jan. 11, 2010
ES opened strongly higher after trading Globex Range of 1140.75 to 1148.25. Friday’s Value-Range was narrow as the Point of Contact was way below Monday’s Open. The first reaction was range expansion day once price trades above the Globex High. But as soon as the market opened, there was no strength and it appeared the Friday’s POC may be an attraction on the downside. I suspect the earnings jitters are influencing the markets.

1. Market Structure High (MSH) patterns was marked at the open near Globex High (1148). A Good short setup to trade on any weakness with Globex High as the STOP. SuperBars and kTrend will be the trend tools to guide the trade. No clear patterns emerged except a Potential ABC.

Around 10.30am, prices bounced off 200-SMA (1140) to show a tradable bottom.

2. Three Valleys Pattern: One of the rarest but reliable pattern. ES made three lows at 1140, 1138.5 and 1138 in a text book fashion. The range from the top
1148 to 1138 is 10 points. From the three valleys pattern, at least a bounce of 6 points is expected (62%) to the GBXMid range (1144.5).

3. 62% retracement into the range from Globex High to the Day Low…

Fib. Bands
Globex Pivots
Floor Trading Pivots
Market Structures