Homework for Friday 2008.12.19

18. December 2008
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ES - Short entry today.  Below is a 15min chart showing the Thursday down move dead-on the 360° rotation (873.75), measured from day's high (see the small, blue dash on the high bar).  Then a quick return to the 180° level (892), a couple tests, the a slow fall.  There was a nice false bar setup as well, right there on the 180°.  So, I feel the entry was missed.  Those two big bars that happened a couple hours ago was exactly a 30° pullback and would've been an entry spot as well.

If we keep falling, I'm looking for a target of 855-858.

 

Summary - It looks like we didn't fall as hard as I was expecting today.  However, there was still lessons to be learned by today's action.  The chart below shows the same lines from the chart above with the rest of the day's data filled in. (this is a 30min instead of a 15min to show all the data).  You can see how the levels held very well.  Above each swing shows the distance traveled since the previous swing (rounded to the nearest degree level).  If you don't understand the concept of these degrees, just think of them as a unit of price movement.  

As you can see there was a lot of symmetry in the movements; either "90°" or "180°".  After the move to 360°, there was a "180, 90, 180" pattern.  Then a "180, 90, ?".  Will we fall to 874 (the final 180° move) after this afternoon's open to complete the series?

 

Homework

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