Emini S &P, Reaction+Median Line trade-setup combo pattern.....It occurs over and over again

Heres the diagramatic versions in 2 time frames. This can be used on any market in any time frame.

 

Heres the actual trade from yesterday: sequential screen shots of charts in both 1 and 5 min TF. The two must be used due to line location issues.Two seperate templates ( charts layouts with different & the same forks plus their RL's) were used as we were tracking more than one set of RL's. Entry is after a HL with a stop below the original LL ( 1555.50). You can finesse such a entry using the 2X+ Bline template but it is not shown here and was not used in this case. The position was closed at 1567. Remember that price distribution around any line is never perfect and exhibits different behaviours dependent on market conditions.

The above description is is simplified not least for the constraints of my time but the rules of entry are clearly laid out on our subscribers site and easily understood both visually and with our PDF text file and private subscribers videos. This may appear to be a contratrend trade but it is not and this pattern and the inverse  for a rising market are trend following systems and they are simply designed to catch the retracement low or high in any trend up or down ...for details on how to recognise these endlessly reoccurring pattern setups subscribe here or get a flavour and more information from the free trial and try and work it out yourself!

Emini S &P.. Surprised by 20pt rally yesterday ? We shouldnt be.

 The sentiment remains firmly bullish and whatever bad news seems to be thrown at the market it takes it all in its stride and rides out the retracements with powerful buying always eventually emerging  and the risk appetite remains strong for equities.

Emini S &P .......which way now? It looks like weakness continues

  Heres the simplified version showing just the major forks

Heres the detail including reaction lines:

Emini S&P after the NFP's data -weekend

Here's what we have been looking for a bounce off the LMLP of the pitchfork seen in all the previous videos and blog posts. A long position bang on the line with the added security of a reaction line seen in the bottom two charts has given us 14 big point of profit on the retest of  1549-1550 and are now flat before the friday close. I suspect it is not going to be plain sailing and the move up from the line is riddled with microgaps ( see 1min TF) such as at 1536 plus one in the 5min TF at 1539 so I expect a RT and an eventual restest of the ML we have bounced off. see previous post/free video

 reaction line seen below rising along LMLP in steel blue

Emini S & P.. extreme caution continued ( pre NFP's)

http://youtu.be/7qGGhdOVou0 

Emini S & P... extreme caution

Remember we are at historic resistance areas with a potential humongous triple tops the likes of which has never been seen. Just the look of it sends shivers down my spine! I suspect we will eventually pass higher in a large move ( remember equity markets are essentially bullish and thus its a rigged market which by virtue needs to rise) but the fact still remains we may have a bumpy ride through to the mid 1570's and could see extremely volatile swings and we cannot rule out the chance of a substantial drop even if we then ride on up higher. Just forming a pivot here could entail weeks/months of jerking around up and down....the limits of which are unknown but a glimpse can be forseen by looking at the structure of the previous two swing highs.

TODAYS VIDEO

In a more normal 60 and 15 min time frame below take a look at the charts and supporting ML's and resisting RL's. Areas of interest include the two down arrows. One is at the CL of the most recent fork you can draw using any one of the recent lows as P0  the 1567.75 high as P1 and yesterdays low as P2. A failure to get there would be cause for concern. Also of interest is the confluence of the downsloping fork's UMLP (which had its CL touched at 1544 yesterday) and the rising thick black CL that has supported price during the past week or two. It may well act as a resisting line and stop price. Also note the reaction line that runs close the the same downsloping upper median line parallel( red arrow on right hand side).

 

All eyes look for fundamental direction from tomorrows NFP's data. Is the US economy really in good shape?

UPDATE 1700hrs London: 
Arrows shows retouch on the back of the upsloping RL (see previous videos and posts) where support becomes resistance and a CL failure for the thin blue uplsoping fork ( same arrow)....weakness to come i think.

 

Emini S&P.....end of the pattern continued?

 As the session draws on I am becoming concerned that the pattern is blowning out and if we fail to hold on the supporting lines ( as per the video) and given some allowence for distribution around the ML and RL we will see a break back towards 1550. What would the end of this pattern mean for the current trend? Watch for 1553 area.  If we make a lower low we are surely going to test 1550 and lower.
http://youtu.be/cCZAKT2TBd4

Emini S&P...make or break for the ascending pattern

 Link to video

Emini S&P...April Fools Day

 Video: http://youtu.be/w6utBnIElwQ