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Legendary Market Wizard
Posts: 1,925 since Nov 2014
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We have 3 kinds of days - Trend days, Range days and Reversal days (Thanks - Barry Taylor from emini-watch.com)
Today, October 15 Thursday is a reversal day. About 30 points from low of 1990 to 2020.
Reversal days usually start before or around 11 AM Chicago time. I have seen enough of them to believe that the odds are more than 70% but no stats to prove. Exceptions are FOMC or big news days where reversal can happen at any time. It also coincides with European close.
I am trying to get my head around this to understand the logic. It almost feels like some sort of hidden code from European OTFs to US big players 'We won't fade, It's all yours'.
It may seem like a trivia but has a practical application.
1. On a down day, if new lows are made after 11 AM CT, then we are less likely to see a reversal day.
That means, one could have been long at the lows today around 11 AM @1990 with stop just below them. Risk is probably 2 to 4 points but reward is usually about 15 to 20 points.
Do I make sense?
Anyone with similar ideas or answers?
Thanks
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