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Old 11-02-2006, 05:51 PM
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Re: When opening FAR below POC...

Hey TinGull,

If you notice the YM, the dead high was at the POC of yesterday. When the markets are far away from both the VAL and the previous days low, this offers a high risk/high reward situation. The markets are in complete imbalance. Because you can not rely on value points and the POC what you need to look is the value pivots and POC from the past trading days. I like to go back 10 days to view my mp charts.

Or another method is to start looking for regular pivot point plays. Basically if price is accepted below VAL and the previous days low, there is a high probability that the markets will head lower. Therefore you can start shorting rallies. If the markets start consolidating, find the resistance points and play the upper range.

Playing the open

Couple steps I take when playing the open. Lets say the markets gap down below value the previous days range. I first check volume on the SSF's. I will then look for the next line of support. This will usually be S1 or S2. Then I look at the TICK's. Did the TICK's open up negative? Are they hooking at the zero line and falling? If so, I will short at the market looking to scale out or exit at the next line of pivot.

Its just a simple method I use in playing the open.

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