Thursday, November 05, 2009
Why I think the trend is up
Here are two charts showing e-mini trading activity. The top chart is a 15 minute bar chart showing day session trading recently. The bottom chart is a daily bar chart going back to the early July low.
On both charts I have drawn blue ovals. These ovals are meant to encompass trading ranges that the market has established. They are impressionistic, but I think impressions built from experience matter a lot. In each case you can see that the sequence of blue ovals moves steadily higher. This is the most basic behavior that you can observe in any auction market. The pattern of successive trading areas, higher or lower, tells you the trend.