Tough Tape

Today’s bounce came as unexpected as yesterday’s sell off, thus once more confirming that it was pure mischief to begin with. Regretfully it happened without touching any major support levels or signs of early accumulation, thus not affording us an opportunity to hop on the bus.

2014-12-09_spoos_update

When deciding to become a trader you need to explore your limits, establish your pain threshold, and learn to accept the point at which it’s clear that you are out of your depth and it’s best step away and wait for another opportunity. Today would be such a day for me.

2014-12-09_zero

Although I would very much like for us to ride Santa’s sled all the way into X-Mas I don’t see how we could have caught a seat on the bus today. The early morning sideways churn was a coin flip opportunity but there was nothing to indicate we’d run this high today. If you somehow managed to get in then let me congratulate you .

Well played of course and whoever engineered this shake out is laughing all the way to the bank. I’m not saying this in a bitter way – on the contrary, I truly respect how this was done. Unfortunately for us steel rats this means we won’t be participating in early entries near high probability inflection points – for now. Perhaps this shake out isn’t done yet, but I have an inkling strong hands are going to drive this higher now, running every single stop that was placed near today’s lows.

No new setups today – I prefer to get exposed in easy tape. The current gyrations suggest that it’s best to wait on the sidelines for now. I’ve banked plenty of coin on the way up and there’s no need to force the issue.

It’s not too late – learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don’t waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Cheers,

Zero Divergences

With all that’s going on I often forget that not all of my loyal Zero subs have been around for years. But recently a few noobs have signed up and thus it’s important to share the occasional titbit:

2014-12-03_Zero

Here’s a great example of a bearish divergence which occurred about an hour into the open. Now, I concede that it didn’t produce a big move but it’s the kind of stuff we look out for. In simple terms: if the signal is congruent with price direction then the market appears to be truthful – if you see divergences like these then pay attention as short term tops and bottoms often happen shortly after. Of course in such a compressed VWAP bubble we probably won’t see large gyrations.

Now the only exception are very strongly trending days – when the signal is above 2 (or below -2). On those days be very cautious about picking any ST tops or bottoms, unless there is a very pronounced divergence (even then proceed with caution). The same applies to the blue scalping signals. Look at the two signals yesterday – those were great conditions for a little swing trading. During trend days however it’s best to completely ignore them.

It’s not too late – learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don’t waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Cheers,

The Slow Walk-Down

I think I’m going to call it a week as the bots have apparently taken over – I’m getting a bit bored of watching this slo-mo walk down. Right after the open I noticed a fast drop on the TF futures and shot out a quick Twitter to everyone. But I didn’t expect such a slow roast to follow the initial ramp higher over on the ES.

2014-11-21_Zero_update

Just look at the Zero Lite panel on the right and I think you’ll get my drift. I for one am not feeling lucky enough to get involved here. Plus it’s Friday and I probably have done enough damage for this week ;-)

20100722hefeweizstory

See you guys on Monday!

It’s not too late – learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don’t waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Cheers,




    Zero Indicator


    Darth Mole Alerts

  1. poll

    • What is your average spread on the EUR/USD?



      view results

      Loading ... Loading ...


  2. NinjaTrader
    Kinetick

    search warrant



  3. recent misdeeds

    1. Post Fed Musings
    2. Strap On Your Helmets
    3. When There’s Blood In The Streets
    4. Monthly Support
    5. Thrashed
    6. Under The Weather
    7. Not A Game For Adrenaline Junkies
    8. I’m Buying
    9. Forex Wednesday Morning Briefing
    10. Tough Tape