DOW - PA, Stops and hedging

H4 trend is up
M30 sessions - DOW sessions rhythm

WIDE RANGE SESSION BAR - body bigger than the previous 4 bars

H4 diversion
fast pump at the open, Opened with GAPS
Fast pump. diversion and dump

Gaps have been filled
when there is such a fast move up or down at the beginning of the session or upon a news release - take notice and take opportunity to trade standard fill the gap approach, which is a good part of the strategy to trade indices.
Trend following, fading, trading to the mean is useful, these approaches demand strategy that is well tested and patience married with experience.
All of the above and some more with MTFs analysis is providing me with a useful approach to trade DOW.

https://realtrading.com/trading-blog/fading-trading/
https://www.cmcmarkets.com/en-gb/tra...r%20and%20over.

Earning season starts soon!!!!
3:00pm London Time, Fed Chair Powell Testifies

DOW long as the FED chairman starts testimony
Long at 39150 closed 39265 well over 100 points on the initial position

Waiting for a poss PB

DOW NYSE session so far

Shorts from 39318 , last session close - 20 points with SL on the other side, cover shorts at the bottom of fib channel (displayed on M1) below 39150 zone

Reverse at this Fib channel on M1 - start of FED chairman testimony (long at 39150 closed at 29265 R on M30)

That is my day so far, away from last session close (shorts), reverse at the fib channel when M30, M5 also came into play (longs)
Flat now, coffee break, might do something later, PA is giving me confusing signals atm, good profits taken so far during the NYSE session alone, in a clean setups the strategy helps me to identify.

M candles set to 5
Fib RET/EXT yellow Ret - continuation of trend to the magnet historic filled intersession gap
FIB APP blue - 1 to 1 move fulfilled

as I type D pivot is just about to be reached (39434)
I am done for the day

DOW might have a PB, ready for another DUMP and PUMP session tomorrow, second day of FED chairman testimony

very busy NYSE session
ready for tomorrow, will act to whatever PA will do
Second day of chairman's testimony

Hi 2be,

When you get chance from your outdoor activities, would you mind explaining your GAP strategy please? I understand the basic GAP strategy but have never traded them as I just default to PASR. The GAP today on MES (wish I was on ES!) was a no brainer trade in the direction of the GAP but I recollect reading somewhere where you went into detail on GAP trading but now I can't find it. Thanks in anticipation.

Cheers,



Edit: I didn't mark the GAP correctly - it should have started on the CLOSE of the last green candle.

Hi Strat,
Sorry it has taken me so long to answer.
I trade taking into account different types of gaps and often what I call a gap is not a gap in a strict sense when one looks as a continuous chart of DOW's future, whether cash future, quarterly future ect.

I look at these gaps as a distance from a certain price level to another price level, these price levels are established by PA, like the last session close, the extremes of the previous session, the current price outside and during the active session. At times as the PA flows, there are gaps in progress, firstly created by a carefully chosen principles and the current price, they are either expanding or contracting (being filled - so one can choose to fade fade them). These gaps are gaps in progress with close time proximity to the last active session, and current trading day including the current active session, in contrast to the gaps set in stone, that is when there are all the price levels available, levels of the previous session and the immediate closed session, OHLC, displayed by sessions candle bars.
GAP to the last session close is the gap between the current price and the close of the last session at whatever time given that the PA has not touched that last session close in a given day. That gap like any other gap, can be filled, partially filled or not filled at all in a given day, or days.
I have these session close levels displayed on my charts. The last session closes are important levels and there are different ways I use them.

Gap to the last session close is widely observed.
For marking the last session close and open I use M30 and lower TFs as NYSE session opens at 30 min past a full hour.
There are various charting and trading platforms and often they display a percentage value of the current price in relation to the last session close.
I use statistics to provide some guidance how to utilise that. I got last 20 years of DOW OHLC data coveted into excel and by different formulas I can extract probability statistics in relation to percentage values of these gaps. It is handy to see the continuous data display n relation to the last session close, the intersession gaps are demanding more work, but visual display even without easy percentage value is also very useful.

Intersession Gap is the space between the extreme of the last session and the opening of the immediately following session, please note that before the given session open, this gap is between the current price and the extreme of the last session constituting a gap in progress, and it becomes a confirmed intersession gap only after the session close if the gap to the extreme of the previous session has not been closed. It is rather lots of words but the concept is very simple indeed. It all relates to the flow of the market move, some of which is well orchestrated by big participants and MM I suppose. At times I can identify some of these large moves and trade or fade them.
I use these gaps to trade before NYSE open, during the NYSE session and at times after or just at the close of the session, trading DOW.



Please take into account that there are various charting displays, some display continuous activity, other display only activity during the give active session, NYSE in case of DOW.
These particular gaps are a part of trading they are not the whole story, I find them very useful trading DOW.
I take into consideration where these are gaps in relation to trend on different TFs, Daily and weekly pivots, missed D pivots and MA in relation to stochastic on Daily, H4 and M30, utilising my particular observations over the years.

The subject of gaps is very simple and many words can complicate the issue.
Hope the above is not too confusing, I tried to describe some of the features related to the gaps as I see them.
The universal PASR principles are applied to all candle bars, to all TFs and to session bars likewise.

After the NYSE session close I am putting MO to go long at 40250, and 40000 for a good measure, will see what tomorrow brings, and shall act accordingly using longer TFs, as I am busy atm.

cancelled the MOs
Adding longs on DOW in the direction of trend on higher TFs

closed DOW longs at the third quarter, 40750

I am done until 11 August at the very least, away on holidays to Cornwall

Good trades to all,
2be

Thanks 2be. Enjoy Cornwall - its a beautiful County - I've been there a few times plus we get chance to see it again on Doc Martin and Escape To The Country.

Cheers

DOW like the other indices is in a well established bullish trend
Things to consider: Jackson Hole, Sept interest cut?, employment data "management", election, forthcoming Triple Witch September Quarter, and eventual rally expected towards the end of the year.
Todays NYSE session started with the Gap to the last session close, duly filled
Once the PA reached mS2 D just below 40700, stopped shorting DOW for a while.
Dump and Pump so far today than pump and dump? the cycle continues....
Red TLs indicate Diversion
almost symmetrical 1 to 1 down move followed by reversal, so far

DOW PA, 261 FIB EXT achieved, FIBs have been taken from the first impulsive of the NYSE session
DR1 to mS3
currently PA around the 3rd quarter, 40750

is there going to be a contrarian move on DOW in expectation of rate cut affirming speech later on today.
It might be too little too late, or euphoria - anything will do to move the price, and take the hopeful to the cleaners

I shall be away for the most of September, coming back after 6th of October.
It is a very long break for me, and majority of time I shall be without the internet.
Taking some books with me to keep in touch with trading.
20 September- Triple Witching Friday, Inflation situation and the expected rate cut.
Wishing all a good month of profit hunting,
2be