ES Monday Morning

The low volume point 785.50 is acting as support. Volume is building in the high 780's on the bounce off the low. There are indications that the Market's pivot point is the high volume at 794.00.

Support below this is at 755.50. If the market moves to the 783 area, sell a low volume rally at 785.50. Support becomes resistance.

Open House

The TradeMaven Inside Edge Chatroom OPEN HOUSE Begins Monday, March 23. The open house will continue throughout the week until Friday, March 27th.

TradeMaven’s Inside Edge is a comprehensive trader’s education forum focused on e-Mini S&Ps and U.S. Treasury Bond Futures that will help you learn the skill sets required to become a successful trader. We focus on the essentials: trade location, trade management, and trading as a business. TradeMaven’s Inside Edge features all of the necessary analytics and execution information in one place to speed up your decision process, keep you on the right side of the market.

The Trader Chatroom for the TradeMaven Inside Edge will open at 7am with a pre-market commentary by Charles Cochran. We will continue to moderate LIVE in the room throughout the day.
For more information on the mechanics of the TradeMaven Inside Edge - click here!
Only TIE software can show you not only historical volume, but the volume most recent in the market’s memory. So you can make the most informed trading decisions. We invite you to attend the TradeMaven Inside Edge OPEN HOUSE March 23rd - 27th, to demonstrate how this software can assist you in understanding the mechanics of futures markets and develop your trading skills. Just Click HERE to enter the traders Chatroom.

Please login to http://trademaven.acrobat.com/r37282848/ (you may need to copy this link into your browser.) Please login to the room as a guest; No password will be required at that time.

Unemployment Friday

Big trading new tomorrow morning is Employment Situation Report. Unemployment is clearly on the rise, but if not as bad as expected we may see a bull Friday. That is a best case scenario; be on guard for the unemployment figures to be worse than expected. then sell the low volume rallies and ride the trend as the market makes new lows.

The Report will hit hte market shortly before 7:30 am Central Friday Morning.

best
Josh Kelne

Charles Comments on the eMini S&P for Wednesday

Exhaustion Bar Trade

Exhaustion bar trades signal the end of the move and occur when the buyers or sellers throw in the towel on their bad trades or hesitancy to enter the market on a trade they saw. The key to this possible exhaustion is the increase in volume compared to the volume in the preceding bars. The key is the reversal from these bar’s high or low.
1. The setup was the market had rallied in three waves from 697.50 to 710.50 and the move ended on higher volume than in the preceding bars.
2. The buying volume decreased in the succeeding bar.
3. Trade entry was on the subsequent bar’s close or upon penetration of the exhaustion bar’s low. Entry price was 707.50 to 708.50.
4. The market hit 703 on the first wave of selling and 699 on the second wave of selling.
5. This trade yielded 4 to 9 points in profits depending upon entry and exit prices.

eMini Rollover to June Contract

The eMini S&P and other Equity index futures will rollover to the June Contract (M9) on 12 March 2009.

The Last Day of trading for the eMini Equity Index Futures will be 20 Mar 2009.

Tuesday's Activity

The 3-2-1 Methodology is based on 3 Rules, 2 Patterns and 1 Indicator.






1. Rule#1 – Low Volume numbers (LV#’s) are support/resistance and should be traded as such. LV#’s stop the buying/selling and can be leaned against for trade entry. If the LV# does hold, the market should be pulled back to the next HV# in the Long Term Distribution.
2. The HV# did pulled the market to it and briefly slowed the activity.
3. The LV# at 703 stopped the market and the market retraced back to 706.
You can use these HV/LV#’s to improve trade location and improved the profitability of your trading.

F Series Charts

The 4 screens (F1-F4) in the attachment show the following studies and timeframes:

F1 Screen

The first screen, F1, is a monthly market profile screen and the data can be split and saved by the user. The long term distribution on the right of the screen holds up to two year's worth of data, which is usually more than enough to capture the long term trend and market’s most recent move. This long term distribution can also be colored to show the number of contracts traded per transaction allowing one to differentiate between small speculators and large institutions (can show three different lot sizes in each price/volume bar). We’re confident that our unique “save profile split feature” is not offered by any other vendor and this one feature alone should make it a consideration for a profiler. It will save a trader a lot of analysis time. The monthly timeframe was chosen to make sure the trader was aware of where the market was, has been and is pointing at a quick glance. Now you can easily integrate the day and week into the very long term and know whether you are early or late in a move and adjust your strategy accordingly.

F2 Screen

The second screen, F2, is the standard 30 minute market profile that allows user splits that can also be permanently saved to speed the analysis/setup process. The distribution on the right of the screen is the long term distribution with up to two year's worth of data. This long term distribution can be colorized to show the number of contracts traded per transaction allowing one to differentiate between small speculators and large institutions (can show three different lot sizes in each volume bar). The long term distribution can show actual contract volume or number of trades at a price or price changes (when contract volume isn't available) to accurately depict the distribution for the periods selected. The volume can be shown at the side of the distributions or superimposed over the distributions. We prefer the superimposed feature, because you can get more history on the screens, which helps one maintain the proper perspective.

F3 Screen

The third screen, F3, is a colorized 30 minute bar chart with volume attached. Red and blue show the prices outside of the value area. Yellow represents the value area. Green is the mean of the volume and magenta is the actual high volume number of the period, when different from the mean. The distribution on the right hand of the screen is the volume distribution for the entire day with the same color scheme as the individual bars. This shows the most recent activity and closest relevant price points, where one should expect opposite activity or a pause. This screen keeps you closest to the market profile information that drives the activity of the traditional market profile user.

The fourth screen, F4 (below), is a 5 minute "equivolume" bar chart that shows the volume in that individual bar on the x-axis and price on the y-axis. The chart reveals a bar's volume relative to the volume of the other bars on the screen; the wider the bar the more the volume in that bar. The bar is further coded to show the volume done on the offer (red) and bid (blue) so you can track the side of the market getting the most volume in any bar. This is a quick fix on the current buying and selling. The chart includes a long term distribution on the right side of the screen to help track the high and low volume numbers affecting the trade. At the bottom of the chart is a bar histogram that tracks the cumulative buying and selling for the day allowing one to monitor the cumulative buy and sell pressure in the market. The greater this number the harder it is to reverse a trend.

F4 Screen

In F3 and F4 we have developed a library of proprietary studies for potential trade recognition (location). These indicators capture the trade setup, the phenomena that trigger a trade and the entry. The four indicators show the following:
1. The letters L and H show whether the market is trending or not.
2. The black up and down pointers isolate and show each rotational high or low for one's defined timeframe. This emphasizes rotational highs and lows that are the market's edges so the trader doesn't miss them. Furthermore, it greatly speeds up the analysis and study of history in the data base.
3. The pink/blue squares show potential turning points or edges in the market by measuring the acceleration and deceleration in market activity over the number of price increments selected; the shorter the timeframe the fewer the price increments.
4. The green circle shows when the market is retesting a previous rotational high or low within as many ticks as the user has selected to accommodate a particular market’s personality and timeframe.
Each of these studies can be adjusted to fit the user's timeframe and trade sensitivity, thereby increasing or decreasing the number of trades to be considered. The proprietary studies are real time, allowing you to take a trade in the signal bar, or after the bar closes like all other technical studies. This real time feature improves trade location over time and is usually the only way to get within a tick of the actual high or low of a rotation. These studies are not mathematical as most technical analysis studies are, but measure raw data, or what is actually happening in the market.

The Volume Map Chart

New the the TradeMaven Inside Edge charting pakage is the Volume Map Chart.
Like the F3 and F4, the Volume Map is color coded to show the Mean price and value area low and value area high. The Chart can be programmed for time periods (default is 3 minutes), tick charts, and reversal bars.

The volume distribution for the current trading session is placed on the left hand side of the chart along with the total amount of trades by price. Like other TIE "F Series" charts, Yellow represents the value area. Green is the mean of the volume and magenta is the actual high volume number of the period, when different from the mean.

Additionally, the Volume Map Chart incorporates an continuously updating value range lines. The range markers provide projected support and resistance indications based on the activity in the current trading session.

The Volume Map comes complete with the Rotational High and Low Markers (Up and Down Black Arrows), the retest markers (Green Dots) and Deceleration indicators (Squares) and "Deep Deceleration Indicators (Diamonds).

The Volume Map provides TIE users with accurate, real-time raw volume data to keep them on the right side of the market.