what happened before is that a low of the previous candle was
exceeded, and the price went back to the highs to provide for a
much better entry on the short side on daily ES charts.
the point I'm making Junkie is that the daily SPX cash does not
show proper gap opens, many times it shows price opening where it
could not have, you will look at a history of the SPX cash and see
all these perfect entries based off taking out doji high and lows
but in reality many of them could not have been traded like that
unless you traded ES overnight to get the trigger.
For example here's the daily SPX cash the price Stockcharts
shows it opening at is not correct, it gapped down. look at
SPY or SSO on a 5 min to see the gap. This example is not
that extreme, there are other much more extreme cases where you
would have missed your triggers entirely.
Yes last time you could have gotten a bounce back to enter, but
that's not always the case. Point is, moves occur overnight
many times and cash does not show opening gaps properly
see the two 5 min charts of SPX cash and SPY, as you can
see it has cash opening way up there at 2015, but it never traded
there! see the 5 min SPY to see where prices would have
really opened
I heed your point, Matt: I trade futures instead of a cash
index. I did not add to my short position after the ramp up of
futures after the close -- waiting for 61% retracement at 2032
cash-- and did not take a buy stop at 2001.50 on Dec15 as the
risk/reward was not great.
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what happened before is that
ES Daily View
Posted by junkie on 13th of Oct 2015 at 09:31 am
what happened before is that a low of the previous candle was exceeded, and the price went back to the highs to provide for a much better entry on the short side on daily ES charts.
the point I'm making Junkie
Posted by matt on 13th of Oct 2015 at 09:38 am
the point I'm making Junkie is that the daily SPX cash does not show proper gap opens, many times it shows price opening where it could not have, you will look at a history of the SPX cash and see all these perfect entries based off taking out doji high and lows but in reality many of them could not have been traded like that unless you traded ES overnight to get the trigger.
For example here's the daily SPX cash the price Stockcharts shows it opening at is not correct, it gapped down. look at SPY or SSO on a 5 min to see the gap. This example is not that extreme, there are other much more extreme cases where you would have missed your triggers entirely.
Yes last time you could have gotten a bounce back to enter, but that's not always the case. Point is, moves occur overnight many times and cash does not show opening gaps properly
see the two 5 min charts of SPX cash and SPY, as you can see it has cash opening way up there at 2015, but it never traded there! see the 5 min SPY to see where prices would have really opened
I heed your point, Matt:
Posted by junkie on 13th of Oct 2015 at 09:50 am
I heed your point, Matt: I trade futures instead of a cash index. I did not add to my short position after the ramp up of futures after the close -- waiting for 61% retracement at 2032 cash-- and did not take a buy stop at 2001.50 on Dec15 as the risk/reward was not great.