Thursday, October 4, 2012

ES: Algos At Work




Its interesting to note that I've found that algos and HFT's are active around key levels that pertain to elliottwave patterns, especially during the first stages of impulsive waves.  

The above chart shows a specific level that I was watching, and as I tweeted at 11:04 am, " I would really like to see a retest of 1451.5 in . $$". This was immediately followed by an algo burst, noted by Nanex. 

For those who are just learning to trade ES, the number is most always front-run by .50.. so I was anticipating the turn as the move from 1453.75 was clearly a corrective pattern. 

Algos love piling on after after the minor or minute second wave. While I haven't labeled the chart in an effort to get this out to readers, the arrow shows where and what time the event occurred.

You won't be able to find this kind of information looking at longer time frames.... so make the 1-min chart your friend.

Best of Trading

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