A Jack of Small Trades

Head & Shoulders Analysis - Using Better Data | ES Long 02-SEP-2015

In this example of a Head & Shoulders pattern using a 4 tick range bar in the forward e-Mini S&P 500 electronic futures contract, you will note that there was steady green WIND coming into both the ADP Emplyment Report released at 8:15 a.m. and the the Productivity and Costs number released at 8:30 a.m.

This green WIND was the undercurrent in the S&P 500 equities indicated a long orientation.

A 1 standard deviation uptick ratio came in exactly at the Right Shoulder.

The Right Shoulder was also supported predominantly by supply initiated order flow - as demonstrated by the ongoing green MacDaddy, which was punctuated by 2 red counter-trend spikes.

ES 02 SEP 2015 Head and Shoulders Order Flow

 

For a deeper dive into how to trade the Right Shoulder of a Head & Shoulders pattern click here.

Head & Shoulders Analysis - Using Better Data | ES Long 31-AUG-2015

In this example of a Head & Shoulders pattern using a 5 tick range bar in the forward e-Mini S&P 500 electronic futures contract, you will note that when the Right Shoulder was put in there had been an ongoing base of buying, as visualized by the contiguous green MacDaddy bars.

Also, there was an inference that the selling of the equity components of the S&P 500 had completed as visualized by the red spike in WIND.

Head_and_Shoulders_-_ES_31-AUG-2015_-_Long.png

 If you find this type of analysis interesting you might be interested in our new book, "How to Day Trade 'Head & Shoulders' Patterns by Leveraging Better Data" will be published in September.

A2


If you would like to be notified once it is published, please drop us a note here

"Head & Shoulders" and "Order Flow" at the Beach

Our new book, "How to Day Trade 'Head & Shoulders' Patterns by Leveraging Better Data" will be published in September.

A2

Book Synopsis

In today’s electronic markets, High Frequency Trading Bot activity relentlessly leaves huge amounts of money on the table that is available to other nimble traders to pocket.

Recent advances in technology now readily allows for the real-time analysis of the magnificent amount of rich order flow data that is created by High Frequency Trading bots.

Surprisingly to us, it has been our experience that most traders do not yet take advantage of all of the additional insights that this are now available to them.

The research documented in this book is focused on overlaying order flow information onto the classic technical analysis ‘Head & Shoulders’ price pattern.

We have dubbed the insights harvested from the order flow generated in today’s electronic markets, ‘Better Data’.

It is our goal for this book to expose you to the benefits of integrating Better Data into your current technical analysis.

We think that this data, which can now be at your fingertips, exposes the naked insides of the market.

Once you see, and experience, what is happening under the hood of the market, you will understand how the laws of Supply & Demand, as manifested in Order Flow, are the determining factor on which way price will move next.

In this book we will review the core concepts of:

  • The impact order flow has on the Price Discovery process.
  • The impact of Buying & Selling exhaustion caused by HFT.
  • How to tell when new recent buying, or selling, coming into the market, is more likely to have a material impact on Price.
  • Why the monitoring of order flow, as Price evolves through a Head & Shoulders pattern, will soon be your new best friend – Move over, Doggy.

This is a must read for those traders who continually crave improvements and want to leverage the better data that is available due to today's electronic exchanges.

 - USE BETTER DATA.

Subcategories