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Have the indexes been overly volatile recently? Every day when looking at the ES, NQ, and even the Russell there seems to be a lot of wicks on the candles. Is this typical for summer trading or is something else pushing it?
Corrections equal confusion.
At the higher degree the markets are correcting. Nine months into it off the highs. The weak being purged. About another twelve months too go. The markets have completed a third wave of an impulse three off the market lows of 2008. The first wave of the impulse off those lows of 2008 is extended. This correction you see is wave four of the three impulse. Because of the shear magnitude of the impulse move off those lows of 2008 it’s more then likely the LOW of this wave four is in, however, the correction isn’t over. Saying all that, there’s a high probability this four will truncate or run, depending on the type of correction. This is unknown as of now. The market needs to give more price information which it will.
My advice only, be careful scalping, especially short scalping the rallies. Put in the work and FIND another way. Just friendly advice. You don’t want the few cruel predators on the other side of your trade. Cruel it can be.
If you or anyone has questions, ask. I’m open source, however I only guide, I never give the keys too the kingdom. You gotta put your own work in. This is how I put food on the table and a roof over the families head ya know.
Wicks are typically used to decipher who is winning the battle. Lots of wicks generally means either an overall lack of consensus or big/smart money is doing what it does.
Not sure what you mean by recently, but this stuff generally says volatility declining since June, but VIX has been ticking up since 8/8.
But consider if use a range bar chart with a 5 point bar size, and one day is 200 points from top to bottom and second day is 150 points, then the first day movement can be distilled into 40 bars and the second day is 30 bars. That is only a 10 bar difference. If first day has 1000 total bars and second day has 500 total bars, then practically, the first day is substantially more "volatile" for a day trader. So I also use this concept in my setup.
Thanks Random-I misspoke and used the wrong term-I did mean indecision. It seems in the last couple of months the markets have had more indecision the first couple hours of the day session.
I agree with that, until last Friday, indexes were bound to the open. This was bigger picture price action chop after a two month bull run and pull back to daily trendline. Then clear break down for a couple days and now more thinking.
Minute Chart:
Daily Chart:
On the QQQ's, next stop is 308ish. After that, big one is 295ish. If gets under those levels, then will highly likely be going to new lows, IMO. We'll see.
Wicks on a 5 min chart, 60 min chart, daily chart, weekly chart...
Each will have more or less wicks but may not mean anything.
You probably should look at support and resistance and volume.
But... if your edge is candles, then look at the charts below and decide what the wicks mean...
Also, most trading systems work best on bar close.
A wick is only a wick after the candle closes and many times, you have missed a large part of the move at the close.
Or maybe I misunderstood what you are asking... FWIW.
Monthly
Daily
Hourly
FiveMin
Rejoice in the Thunderstorms of Life . . .
Knowing it's not about Clouds or Wind. . .
But Learning to Dance in the Rain ! ! !
On the the posted charts. The low time frames you have posted, the index(s) is correcting up. There is one more move down so watch yourself. As far as the higher time frames, Index(s) completed a three, three, three down, and is currently pulsing up.
The “Wicks” you speak of are more so important then the candle body itself. The actual High and Low of each bar whether looking at the sub minutes or the yearly charts is significant, very significant. Can’t stress this enough. If there’s a higher high or lower low by so much as a quarter point or “tick” from the previous, it’s an issue and something has changed. Markets have evolved. They’re very fast.
Most trading systems?? Friendly advice, you wanna be on the lonely least traveled path.
