[Tasuki]

Originally Posted by waveslider »

Interesting pt. here...

any thoughts?

Is this the ES, waveslider? What's the timeframe?

[waveslider]

yes sorry, es.. Its just an hourly.

[Tasuki]

Originally Posted by waveslider »

yes sorry, es.. Its just an hourly.

day session only, as I found out (@ES.D in Tradestation).

Where would point 6 be, waveslider? Somewhere below point 2, right?

I like the fact that there's a pitchfork confirming the weakness.
Doesn't hurt that there are two moving averages providing resistance on the daily chart (34 EMA and 50 SMA).

Still, every money manager on the planet is telling his clients to get back into the market, so I'm dubious that point 6 will get reached. This might turn out to be a classic example of what happens when technical analysis stands in the way of a stampede of bulls.

[waveslider]

yes here is an updated chart. I actually moved point 1 on this chart a little lower to where momentum actually started. This is a 45 min chart of ESZ08(24 hr sesh).

Total disclosure, I actually took a position on this one short on the close today. I had another signal anyway, but I think I will trade a portion of this according to the pattern.

I added the Andrews line because it seemed appropriate.

I like the WW target here because it has acted as a genuine support and resistance line on both sides.

I like how the WW target line also penetrates the pattern at the 50% mark of the pattern. There is of course another Andrews line that could originate from the #1 pt. which has an even more deep target.

I am still convinced the charts say we are in a range, a time when WW works well (as opposed to trend).

The classic descending triangle should be apparent to every one in this market.

This is not going to be an easy ride lower (I anticipate), since its not close enough to be a straight fall. However the R/R is about 5 to one right now.

I'm doing one contract down to that WW line (100pts). Its the most conservative line of the other andrews lines I see originating from that area. The rest of the position I'll take off around 850 if it gets that low.

There is a real possibility of testing recent Nov. lows... notice that price is failing to stay above pt. #3. Every one who was going to buy bought on that gap up - weak volume follow through..

Well see..

[Tasuki]

Best of luck on this trade WS. I'm thinking right now that we won't hit even the Andrews medianline, but that's what makes for two-sided trading, right? I have to admit that the WW and pitchfork really do look classic.

[waveslider]

Patiently waiting for something to happen, another WW just formed as the top failed here...
I don't know why I am seeing WWs recently more. I still don't trust them too much, they have to be traded with some other method.
The steep pitchfork I had on that chart doesn't look so good anymore.
I still think this market is headed south.

[bubba]

a bit late maybe - sorry, but this ww has been there for a while. i expect most have viewed it.

[waveslider]

Nice to see you're on board bubba, Taz and I were discussing the same pattern in ES, looks to be the same points we're using.
This has moved about 40 pts since yesterday, good trade so far... looks to gap down tomorrow...