Trading Futures | Pat Mullaly, CMT| 10-7-19
Good. Morning. Wherever, you are this. Is Pavan Lally I'm in for the one and only John McNichol, today for, trading futures today. Is the 7th of September. Monday, so we're rolling into the week where, last. Week might have been the week that was maybe this week will be the, same, thing, as, we get into. The. Trade. Talks more trade talk news over the weekend we'll take a look at that and we've. Got a gap, trade going on right now we'll look at that as well and look at some other things that might become possibilities. Let's. Get into the disclosures, and remember, that. Everything. We're doing here is for educational, purposes only and. Not. Recommendations. Or any endorsement, in, order, to demonstrate the functionality of the platform, we're going to use actual, symbols, that does not mean TD Ameritrade, as making any kind of recommendations, or determining. The suitability, of any security or strategy, any. Investment, decision that you make in your self-directed account, is solely, your responsibility, all. Investing, includes or, is subject to significant. Risk including, the risk of loss we're, going to be talking futures, futures, and, futures options trading, is speculative. As not suitable, for all investors please. Read your, disclosures. Futures. Accounts, not protected, by the S IPC, and. Features. Of features options, trading services provided by TD Ameritrade, futures, and and forex, trading. Privileges are, subject, to review and approval not all clients will qualify and, options. Are not suitable for all investors special. Risks are inherent to options trading may, expose, investors, potentially, rapid in substantial, losses, with. Options, spreads, the straddles, other multi leg option strategies can, entail. Substantial. Transaction, costs that can impair the, profitability. Of trades. With minimal potential, benefit and. Paper. Money great for learning you're learning. Your theories and in practicing, the platform but does not guarantee future returns, we, talk about probabilities, those are theoretical, in nature not, guaranteed, and. No. Soliciting no photography no part of this presentation, recover recorded a rebroadcast without, any prior written consent of TD Ameritrade, Delta Gamma Vega theta option. Sensitivity, to changes in price time, and volatility, okay. Let's get out there and see what's going on out there in the market. And. We've. Got a. Gap. Opening. A gap, opening, meaning. That we are lower, than. The, previous. Open. Let's pop this down into a, five-minute. Chart so you can see that a little bit better here we, have a trade. Going we've got big volatility. Out there in the market meaning that if. You were to look at the VIX let's throw the VIX on here. And. Let's. Put that on a. Six-month. Daily, chart just so you can see where we're sitting, so the VIX staying. Somewhat. Elevated you, might say saying. At the round the 17 area, 18. Area, above. 20s where people, really. Start to get worried above 17, can be kind. Of a warning, signal as well but the point I'm trying to make is that remaining. Elevated, compared, to where we have been in. If. I put a five-year chart on where. We can see that the lows of the VIX in. Previous, years really. Hanging down around. The. 1011. Area now, where we've. Transformed. Or we're, in a new regime they like to say. Of. Volatility. That may bring the volatility. The, lows of the volatility sitting. Up sitting. Now around, 12, 12. Or 13, and you're. When. You get above 20 that's, where people, start to get a little bit more, fearful you can see that in the past so the reason I'm bringing that up is the, higher the volatility. The, more width, we, have or, the more range. We have in, the. S&P, 500. The. SP 500 move so let's put the EES. Back on here. /es. Is the futures. And good, morning Sunita. Good to see you and, everyone. Like Sunita, says let's. Look. At what's what's, going on out here so down nine still, so, the markets still somewhat. Weak on the opening we can see here, on. The, five-minute. Chart before, I jump into that let's, identify some areas some five-minute charts we opened up right here that. Spinning. Top with some really long tails and then we are popping, to the downside in the second, five, minutes, here let's identify, via. Price. Action a, couple of things so I'm going to put a line. Right here those are the highs there, those are the highs. Though. Of the overnight, highs and those highs. Are. Sitting. Around 29. 46. And this is going to have some.
Some. Importance, when we we're, going to delve into something, that, some. People like to use and. It tells us gives us a little bit of the, tracks in the sand I want, to put another line down here these are the lows, over. Nine that's right around 29, 35, so 29, 35, is. About, five points, or so below, where. We. Are trading right now and, we've. Got the high is the overnight highs sitting. Up around 29, 46. Which, is about six points above, where we're trading. Lot right now so looking. To looking. To see what happens, when, price gets into, these. Areas and the reason I say that is let's take a look now now. That we've identified those. Areas I'm going to widen. This out when i widen this out, what. I want everybody to notice, is areas. Of, on. These. On. These. Uh. The. Ladder, here, if you. Will. Scooch. This over just a little bit on the, ladder what we have is. A. An. Area here, kind. Of this bell curve. And we. Said that we had these lows. These overnight, lows, sitting. Right around here 29 35 29, 36. And if, we look at the. Peak in that that lines gonna stay there as price moves around if we look at this peak here, 29:36. That's where a lot of volume came in and that, looks to be a possible. Attractor. To the downside so what. We're, what we're gonna look at here if it makes it to this area so we are long right now and. Feeling. A little bit of pain, we can see over here on the, open. Feeling. A little bit of pain we'll see what happens we should find some support if it, makes it down into this into. This area, down in here this bell curve now, the, the. Thing to remember about these bell curves is. Our. About, price is this. Area down in here, is. Just. The, other side, of that line so, we, may see if. If price continues to weaken we, may see price, actually, drift, down. Into. This. Zone down, in here okay so I'm gonna explain why, that might happen people. Are willing might, be willing to sell traders, might be willing to sell at, a lower, and lower price, until, it gets to an area where, they're saying no. That's no longer a valid. Price, they might say and we see that through, through. The volumes, these are volume, you can see up in here these. Are volume, bars. And, right. Now we've got what, we call a double distribution. In these bars if we scroll up you're, gonna see there's some. Peaks. Higher. Up and there's Peaks down. Below so if we. Scroll. Up. Peaks. Right. There scroll. Down, we. Get the peaks here so we get this double. Distribution. Of price would just stay still which. Is not going to happen stay still for a moment then. What. We get is. What. We're going to get is, price. Are this. This, volume. Areas. Where we have you. Know quickly. Price. Moving too quickly here. Where. A price will search, out these areas so we're looking for price. To drift down into, the 2935, area so if you really wanted to if you wanted to wait and see what happened at those, areas and not take the gap trade, there's. Nothing at all wrong with that. But. Buyers have, a tendency, to buy it support, they, have a tendency to buy where. Price is no. Longer a. What. They might consider a fair value, and that's why we see this. Lack of volume down, in these areas you'll be able to see this on the volume profiles, if you put it on the on, the, the major chart, here I look. At these volume, profiles, and a, little bit different than what you'll hear a lot of people say. Because if price has a tendency, to overshoot, and it, overshoots, into these into. These lower areas. So if we're looking to buy as if somebody's looking to buy it support, we, may look for these. Lows in here and let's zoom in a little bit closer if price keeps dropping we. Zoom in a little bit closer here and we see that. There's. A low right here at 2935, at, 2935. We. Might. Consider. A tick, or two below that to be a possible, place. To. To, buy so again, looking at 2935, over, here you, can see that is at the ultimate basically. That volume is totally, dried up down in there conversely. If we if we go up to the top and we. Look at these highs up in here we've, got 29, of. 46. That's. The zoom out on that just a little bit so we can see that a little bit better, ultimately. The highs for the. Overnight. And that was about 7 o'clock Eastern, Time I believe and those.
Highs Are sitting at 29 46, 75. And. If we scroll up. We. Look at 29, 46. Seventy-five, we. Can see no volume, up in there that's, where the volume dries up when volume, starts to dry up that's. Where things may turn around that's where you, might if you were standing in a pit with. Open outcry and. You're. You're buying and selling the, SP futures. Somebody. Had to be the last person to yell buy up in here and they. Were buying at a very, low. Volume area where, people were no longer willing to, to. Buy it at that area because, they most. People said. Hey you know I'm I'm, not doing anything up in there and then. We have we have weakness, that ensues. And we, see price start to drift back lower, right, and so here. Is. The case of. This double distribution. That. Is a. Bit. Of uncertainty but a sideways, action we'll see what, occurs along. The, along, the way. And. If we look at the midpoint here twenty nine forty let's, look at twenty nine forty. The. Midpoint, of the overnight action, and you, can see still, right around twenty nine forty a little, bit of action in here but just not as much as this these. Double peaks as the. Market is starting to settle, down somewhat. All right let's I'm, going to collapse, this and. We. Shall move. On. To. Let's. Move, to the next. Possibility. That's the Nasdaq, the, Nasdaq continuing. To weaken as well. And. Let's. Pop. Open the active trader here, and that's really wide, zoom. Out on that, again. Do do doing, the same kind of the same exercise. Putting. On the overnight highs the overnight lows via. A price, level we, get these price levels down, here, where. This, one says dollar sign whatever you choose, you put a trendline, in there it'll show the trend, line down, here. At the at. The Loews so. I'm just clicking down in there. And. Let's. Put a price line on another price, line on. So. 77. 22. Same. Kind of action you know we see that volume has a tendency, to dry up so somebody might be, a buyer, of support. There we might look at. At. A. Use. A technical, indicator. And since. We're looking at the. We're. Looking at the. Linda. Rockies 310. Oscillator, and. Basically. Just a histogram. A Mac, D style histogram, it's basically, built off of the MACD what. We'll look for is price, to. Have. We. Look for price to to. Pierce. The. Upper. Keltner. Which is right here you know what I'm gonna thicken these up. So. We can see these just. I'm. Gonna get rid of the average first of all let's uncheck that one and. Thicken. Up the upper band so we can see those a little bit better not, so much that we can't see that, it's. Pierced, that upper or lower band. And. What. We look for is a as, price to pierce. This upper band, and. Then fall back in and. Make. A. Divergence. Well you can see right now on. With. Let's. See here. 7:45. So, this is a we're, printing a new, printing. A new. Candlestick. Showing. Continued. Weakness here down, about 37, points so. What we'll look for is. This. A, divergence. Meaning we will. Look for in. This case we'll, look for some bullishness now let's start, putting all this together if, this. If this, line right here is our. Support line. And price. Pierce's. That support, line. Okay. Pierce's, that support, line and. It and it drops below, this. Keltner. Then. We'll Keltner. Channel then what we're gonna look for is price. To move back into, it. While. We get. The. MACD. The, 310, oscillator. Lindo, Raschke is a wonderful. Has. Been a wonderful. Person. To follow on twitter you can follow me on twitter as well so. Here we have what. We might be looking for so we're going to look for. Price. To move back up above, the, Keltner and then, fail and see. Price make a new low because, if we're looking for price oops, we're, looking for price to make that new low. Let's. Draw a line here but, we're looking for the MACD, or they the 310 oscillator, to, make a new high and while, that occurs what we're gonna look for is, the. This, bottom, one to, start. To move to the upside as well so, as price. Diverges. From, the oscillator and. Starts. To push back to the upside, that's. Going to be our signal, to, make. A trade, okay, so what are we looking for we're, looking for a divergence. A divergent. On. The. Oscillator. The 310 oscillator, and. We're looking for a. Market. Forecasts, that. Rallies, as well we're, also going to be looking for price to, our. For, the we're gonna look at this support, area in, here this, dotted, line we're. Gonna look for that to. Come. Into play, here there we go. And we'll pop open this active trader and we'll, start to look will see that now, price is trading at 77. 25 if, price is trading at 77, 25. That's a 77. 28, now moving, fast to the upside up in here we're looking for price, to. Pop down into. These, lower ranges, and so we, can see here, 77292. Some people seventy seven thirty that. Is where the. Most volume came in but you can see that price overshot. That and dropped, off to, the downside now don't.
Have Any. Scheduled. Real scheduled, news. Coming. Out and it's. It. Is, 12, minutes 11. Minutes and 15 seconds, to the hour, to. The top of the hour so any. News that will come out will have to be via probably, tweet or something like that we know we had issues with. The. Chinese. Saying. That hey we want a more, narrow, trade. Agreement. And the. US wants a broader trade agreement, so that had a tendency, to push the market down a little bit overnight but again we're gonna look for these for. These oscillation. To. Show some divergence and then we'll look for as. Well as price getting into this support area that, means we've got a couple of things that, are working in in our. Favor and it's as it is right now no, divergence. But. We. Do have a piercing, of this, line so we may get we, just you know be, patient let that divergence, build, out and we. Can see some support. Coming in at this, low right in here what's the low here 24, 25 77 24, 25 so. If we scroll down. 77. 24, 25, you, can see that price cut is about as low, as. Vault. Is is the weakest volume, overnight so you, can see that people at that point said hey this is a. More. Opportune, place to buy, sellers. Nobody. Was willing to sell any more there that's unfair, selling, so we'll see if price can push. A little bit lower and. And. Get. Some kind of divergence, out of this. Out. Of the oscillator. We, can see here with the Russell 2000. We've. Got the market, forecast, showing some strength, we've. Got we've pierced, this. The. Keltner that's right click and make sure cut the kiln is correctly built in here and. Yeah. Let's. Uh pop those into a. Little, bit thicker. Action. Here. There. We go and so we'll, look for price to run back up come, back down make, a lower low and. Look. At the volumes, here, the. Low the. Recent, low is. Or. Is that low 1491. In change. 1490. Ups. 1491. Even, we, look at the volume, that's. Going to be. Some kind of a justification, or a rationalization. And we, can see that that was the lowest volume overnight. As well so as. These. Bell. Curves in volume, form, they, give us target. Targetable. Possible. Targetable, areas, to. Be, buyers and/or sellers, because, if somebody bought on that. Low volume, if. You buy on that low volume, at a support, area if you could identify a support, area you bought down here at this low volume, your, target, could, be a couple of different places it, could be this mid point it. Could be the. Opposite, of the minted to the lower, side of the of the bell curve. Meaning. If. You have a a, bell, curve. Then. You may, buy down in here, and. If. You're. Really. You, have a lot of conviction you may let it go all the way to the other side of the bell curve okay. So if we look at. This. Curve right in here. And. Somebody, buys lowdown, in here they, may look for it to get back up in here and so what is that what does that mean as far as price goes that. Means they're buying at around, 1495, looking. To get out with a couple points in the middle or see. If they can get three, or four points, all the way to the upside and we're getting some strength coming into the Russell here, but no indication, as, far as the. As. Far as the. Divergence. So, we'll give that give, that a little bit of time let's keep, moving we've got the Dow. Doing. Very similar things as popped back over to the, S&P, there. We go, SP. You can see got down into the support area now, we already have that trade on the. This, the, gap. Trade and, so, this. Was a an. Area that a lot of people get shaken out on and. This is what I was talking about earlier is, that. Oftentimes what. You'll see is price, will pull back down into these overnight, lows or into the previous, some, kind of support and resistance and it could be later in the day that you may look at this the same way and. You'll. See price. Push. Below the lows so, if we look at this low here overnight. On the S&P and. Let. Me zoom, in a little bit closer here pop. Open a drawing tool. We. That's, a great arrow pen there we go little, squiggly arrow we've. Got a low, there. And. That overnight low was twenty nine thirty five we, figured. That out a while back we looked at this low right here the low of the intraday. Market. And that low was twenty nine thirty four twenty five so it pushed, below. By. Three. Ticks. Meaning. That. Not. A full point but it. Was a kind. Of a shakeout fake-out at least in the very near term but. Again the. Discussion we had on the active, trader tab and the volume. As they, came down to 29:35. Our, 34. And a quarter. That. Is about as low as volume would. Have gotten overnight, picked, up a little bit of volume in there as people started to buy and then. It rallied up to 29, 40. 29. 40. You can see volume is. Weaker, there so, that's. What we were seeing that the, the. Area, is you know, people, look at this and say well why aren't we buying where most the volume is well, this, is where the two-sided trade people are willing to buy, and sell they think that's fair so, what what you might be looking for outside, of a.
Outside. Of a. Strategy. Of you. Know some kind of technical, strategy, you might just look at price and volume and say I'm, gonna buy when, volume, in an area where volume is low but there's been a, congestion. Right a tension. That is built up and that's, what we have here is a, lot of tension built up overnight in that area and. Up. Here. Overnight, around, the 29:46. Area so we're gonna we. Look for people to we, look for markets to bounce around that, area now, the another thing you might consider, I'm. Gonna pop this down, another. Thing you might consider is. The. The. Last, couple, the moves from the last couple of days and. If we look at, the last couple of days and that those dotted lines excuse, me those are the overnight lows, and highs but, we had big range days and so. We should probably expect, some kind of. Indecision. And of. Course we had some news, on top of that that pushed it lower so nothing. Nothing. Out of the ordinary to, see some pause in here. If. It is going to be bullish something. To think about if. It is going to be bullish then. The, overnight. Or the lows, the. Closing, or. Excuse me the openings, from last. Friday. And the lows of last Friday if it's, really going to be bullish in theory. Over, those. Will, be areas, that price won't be able to make it to price will not drop down into that area if we look at these areas, over in here route, big rally up a bit, of a pause big, rally up notice, that on. The on the pull backs over in here price, was. Unable, to. Make. It down to. These. Lows in here okay. These. Lows in here so to, be bullish what is it higher highs and higher lows that. Means those areas, become pretty. Important, so Friday's, low becomes. Pretty. Important, from a from, a, longer-term. Standpoint. Even if you're trading intraday. And, then. We get to long. Days up to the upside. Over. In here price. Stalls. Doesn't. Make it down, below. These. Longer. Range more, powerful, lows also. Something to remember is where. Price, is coming from okay. So when. We get price. Popping, to, the upside down in here big. Moves then we should expect some kind of. Loss. Of steam if you will to the upside. Okay. We're looking for divergence, which, means we're still looking for price to pull back down and. Find. Some. Some. Buyers coming, in again again, we want to see price get a little bit lower we, want to see this, MACD. Do something like this or perhaps. The, MACD gives. Us. That. Divergence, that oops. Losing. There, we go that pops back up to zero and, then, diverges, like this. While. Price. Holls. Lower so we're gonna look for price to pull lower. And. We'll look for. The. MACD, to, again. Diverge. Meaning. We're gonna look for MACD, to. Make a higher low right, and so, higher lows. Lower. Price or even even price and. Then. Price, to pop back up so I was we have to do is wait if. It doesn't happen it doesn't happen. But. Today. What, we just talked about is something that. You you should probably look, at in practice, there's an everyday those. Are going to be there that, volume is going to be there some. Days it's, not a what. We call double distribution. In, market. Profile. Discussion. But, that means there's two bell curves there's, one on top and there's, one on the, bottom okay, and there can be even be triple. Distribution. Days as well but. It's, but it gives us some targets, and, we'll just wait to. See what happens right. Now her. Gap trade, feeling. A little bit of pain from the gap trade but, sometimes it takes a while for those gaps to for. Those gaps to fill. Let's. Continue to look sometimes, the Russell, is. Is. Moving a little bit different than the rest of the market and we can see we've got, the. 310. Oscillator, on the Russell rty. /rt. Why moving. To the upside here. One, bit sighs so I'm looking at the questions, here so Nick Nicholas, says on my active.
Trader Tab only see one bid sighs and one, ask sighs. So. I'm. Not sure if you mean. Here. Hmm. Hmm. That. I wouldn't know the answer to unfortunately, and I don't, want to try, to make something up what's. Sitting so I need the additional sizes, so. Bid sighs to just be out. What, is being bid what is what is being offered right the. Buyers and the sellers. And. So. Not. A lot of not, a lot of big action, and the Nasdaq, that's pop over to the back. Over to the are in the Russell that's popped back over to the S&P, need, to see the S&P is in, the hundreds whereas, the Nasdaq. Starts. To and the Russell are quite. A bit less so they their trade, less. Less. Frequently, but you should if. You're, seeing. If. You're seeing the. Just, one and one over in here. I'm. Not, sure why that would be why, that would be doing that. Okay. So. My my apologies, Nick Nicholas. I, not. Sure why you're, only getting ones, in there. Does. Your data up here and the. Up. Here at the top. Say. Real-time or does that say delayed. That's. Delayed, you, might want to and you have a, live. Money account you. Might want to give them a call and see if they can make that real-time data, I don't think that's the issue. But. Anyway. Okay, we're watching for the Nasdaq, to make. A lower price, low somewhere. Around the supporter, we pierce that, we. Pierce the. Keltner. Right. There, or. Back up inside. And. So. We're just waiting for it to. Continue. Either continue, to weaken or make some kind of decision right now price. Action is, drifting. Sideways, on, the Nasdaq. And. On. The Dow and. Pretty. Much on the S&P just back and forth now. In a tight little range. We're. Going to focus on the Nasdaq. As. A matter of fact while we're doing that I'm gonna pop open this side over here and let's take a look at some of the some. Of the other futures, out there so this is a. List. Of certain. Futures that you might want to watch it's. Up to you yes. As the sp500, then, we have the rty Russell 2000. Forward. Slash Nasdaq, in queue. /cm. And then we have crude oil crude oil catching, a bid today up about 68, cents it was. Down. 6%. Last week so but. That was really kind of the bottom of its range so we're seeing it bounce to the upside silver, and gold off. To. Your note bonds, oh, no. Sorry. Sorry. That's soybeans, they're. Down, probably. On worries. Of trade who knows for sure lots. Of things that go into the. Grains that can make them move whether. Supplies. Coming out of other other. Areas. Literally. Fish. And. Cho V's and things like that that. Can be used for feed. Low. Supplies of those interestingly, enough. Zeebee, in. The long bond down. 21. 30 seconds, so long. Bond has 30 second 30 seconds, to, a point, so. Down, about two-thirds, of our four. Tenths, or a percent here. Two. Thirds of a point, and. ZN, the, ten-year down. Nine, tenths of our, nine thirty seconds, and then you have the. Two-year. Note which. Was down pretty hard, last. Friday down. As well yields. Are up 10-year. Yields up and. Then the dollar is weak as well here's your Vic's. VIX. Futures off. Just. Slightly. Now VIX futures, runs. About a thousand, bucks, a point. You. Got to know your points in here we. Got the Nasdaq. Rallying. As well let's go back and take a look at the S&P it's.
Rallying, It's now. Put us at, from. The open up a little bit for the day and. So you can see and. Hopefully it, was hopefully. It was news. That you could use, the. The news of volume down in here what it's telling us a bit. Of a rally so if you came in and bought that support now these are channeling days right. Channeling, days is. Where we go, from support, to resistance, that are from resistance, to support, it doesn't have to make it there but, if, you looked the, the one of the reasons you want to make. Some decisions, on. Possible. Price action and that's, what we were looking at here. Possible. Price action is if we have to, really, long-range days so. These were trend today's more, than likely not. More than like you but there's a. Probability. That we'll have a channeling, day meaning a sideways, smaller. Range a smaller, range day where it isolates, or bounces. And moves back and forth there's. No guarantee, for that you can have several. Long-range, days in a row but. When. You. In. In, anything. Whenever. You want to try to. Find. Lower, risk. Areas, you, want to buy low sell high well. That's the idea of buying at at. Support, now, we're not, we're. Not out of the woods yet. Price, has a long way to go before. It fills. The friday friday, gap, oftentimes. Unchanged. Can. Be just like these areas, here these overnight. Support. And resistance, areas unchanged. Can, be a which. Is this line up in here the taught the the fill the gap can, be a target. For a lot of folks as well so that. Means it's going to have to pierce the upper side that, means that some volume, is going to have to come in buyers are gonna have to come in as. It if it if it pushes above. The overnight highs. And that's, where we'll, look to see if there's going to be a rush to. To, buy in that, when. That if, and when that happens. All. Right that's why we have. Certain. Risks, that. We want to take depending on your account, don't risk too, too. Much. All. Right let's see I don't think we're getting any kind of a divergence, out of any of these. We. Got the Nasdaq approaching, its highs so. Again at if, we look at the 77. 58 59 area, on the Nasdaq. Still. Several points higher. Than where we are right now you, can see that that's where we'll probably meet, with. Some. You. Know some hey let Mikey buy it type of action. And. Getting. Ever closer to that. The. Russell 2000, new highs for, the morning. Let's. Look at the russell on a. Longer-term. Chart. So. Let's collapse. This, russell. Of course you know a, lot. Of discussion, about the russell and the weakness with the russell coming, off of these lows in here coming off of an area of. Support. Let's do this let's come up here to the beaker. I'm going to come up to the beaker and i'm, gonna left click on the beaker and i'm going to come over that brings us up. To the Edit studies and edit, studies i'm going to type in vol you, and look. For. Volume. Profile. Okay so what i'm going to do basically, is put the volume profile, on the. One. One-year, chart, six-month. Chart and that. Will. Pop up in here and probably be a mess because we have Keltner channels up there as well. Let's. Hide, the Keltner channels, so i'm going to click on the gear on the, right. Side of the study and, i'm, gonna hide that and, then, we'll put the, volumes. On here and. You. Can see again we've, got resistance. Up in here, and. The, bigger volume is actually below that Raziel this is called a control point here, where, the bigger volumes, are but, don't be surprised, to see price. Move above, this. Above. This peak and into, these, valleys, that's going to put us up in this area even on that even, on the daily. Charts it's put a one-year on here even, on the daily charts. These. Valleys, and Peaks up. Here and that's where we, may see you. Know the the, selling. Or the buying dry up let's, put a. Keep. Messing with us a little bit here. All. Right here's a two-year and, let's. Put a three-year on. I'll. Get this right in a second, it's, not right it's just I'm just trying to demonstrate. The. Importance. Of volume. All right so we have a three-year, chart on here, it's highs all the way back in September.
Of 2018. You. Can see we've we've got this these. Distributions. These bell curves in volume, and you. This is an area that we might see. The. The rustle that would be a breakout, break. Up into the, zone maybe all the way up in the other side of this valley right, sometimes, that happens but if, it holds in here if it, checks to if it breaks to the upside checks, back in and then, rallies again then we're gonna look for. Price. To dry up, volume. To dry up as we hit these highs in here, definitely. These control, areas the middle of these peaks in here are. Going to be, congestion. Areas where a lot of trade a, lot of trade went on and off. I'm. Gonna remove, that I think. Maybe, not. Go. Back over to the beaker to do it let's turn the kelleners back on. And. I'm, going to take the volume profile, off so no, matter how you're looking at it intraday. Longer-term. Volume. Has. A tendency. To, have. That, kind of that bell curve, bell. Curve look to it let's, see. What's happening with the Dow the Dow, hitting. Into, its upper Keltner so the divergence the, opportunity, for divergence, may. Come not. From, a. Bullish. Divergence but, possibly a bearish divergence we've, got the, S&P now. The. Es SP. Futures now, up against their Keltner channel. See. What's going on here so again. We're, seeing and. You're gonna always see this you're gonna see tight Kellner's, overnight. And then they're gonna widen out because that's when the trade starts to come, in so you're gonna see this. Bit, of a widening in here but that becomes the, important, area for, the. Overnight or for, the intraday, session. Here so we've got Keltner. Widening, out. Which. Means we have to see price push through these Kellner's, and then, come back and then, make a new high when the oscillator doesn't. Make a new high again. You've is. Or there's. An old saying that your money is made in your sitting being patient and that's, what that's. Ultimately what needs to be done so again. Channeling. Means that maybe we go back and forth from some, of these highs up in here and these. Lows in here for the day who, knows for sure. But. With. That I, am. Going to, I'm. Going to vacate, as. I've sitting in for John. McNichol. Nothing. Really. Going. On except buying at support selling it resistance, so far for the day the. The zones. You need to be aware, of are, going to be the overnight, highs the overnight lows and then, Friday's. Close, to see if we fill, that fill, that gap right now, there's a bit of weakness coming, in. To. Price at 29. So. If we double check that that's. Right, around this area of accumulation, the two-sided trade the, fair trade area, where people say yeah that's fair I'll buy it here I'll sell it here and we'll, see a lot of action in there it's those places where we don't see action, it's, a that, become.
Important. That's. Where either volume. Is going to pick up and we're going to see another distribution. Another. Bell. Curves start to form. Meaning. That we'll see some more volume come, in up in in, above this, resistance. Area or, down. To and below this support. Area but. Right now after. A long range again the long range candle, some. Breathing, out we'll, see if that holds and can, make it push it to the upside it's 15 after the hour almost 16, after the hour and. With. That I am going to. Doesn't. Look like anything that's going to happen over the next 15, 10, 15 minutes as far as these. Divergences, those types of things, so I am going to bid. You adieu, and. Tell. You that remember everything we're doing here is for educational, purposes only and, that. Any. Investment, decision that you make in your self-directed, account. Is. Your. Responsibility. For sure and, Nicholas sorry I couldn't get to those I couldn't figure that out for you don't know why that would be doing that you might give the desk, call. And our. TD, Ameritrade call and see what's going on there without everybody, be careful out there, keep, your risk at bay it. Is. Best. Not to get. Too, greedy. And so use. Your risk the. Risk formulas. And those types of things so that you don't bite. Off more than you can chew if it goes against, you with that everybody have a wonderful day we'll talk to you soon.
2019-10-17 05:00
