Thank you for reading and for your comment – I’m so happy to be of help.

I’m still kicking ideas around and will try to be as effective to as many people as possible but it just seems the ‘industry drift’ is overwhelming to the S&P 500. I’m still exploring the options but I’ve been focusing on the Dow for over 10 years now so it will be so hard to switch but it may be essential.

Please don’t change from DIA to SPY because I trade DIA. I concentrate only on DIA because I just started and your analysis really help me learn how to spot a pattern. I can see when I missed the pattern and what I did wrong when I read your blog after market close. After I found your blog, I felt like I begin to find some footing. Your analysis on DIA has contributed a lot to my learning curve.

Thanks.

As much as I’ve tried to ‘get’ the NASDAQ, it’s just not for me. I’m more of an old-school Dow enthusiast who is now switching to the similar S&P index.

The structure isn’t much different (in DIA and SPY) other than the SPY is 10x more liquid so it won’t be a difficult switch – it’s just be difficult to focus on new price levels and assumptions.

Probably very soon.

Thanks! We’re on the same page. The structure as it develops gives us clues on which trading strategies to use and how to find opportunities (and manage risk) during the day.

The more we see it, the better we become.

Research I’ve done on gap fills in the DIA show that it tests out best not to fade gaps greater than $1.00, which seems to be the threshold. Odds of a successful gap fill (trade) decrease as the size of the gap gets larger.

That would indicate churning, which is exactly what we got in the intraday pricing – that of seemingly erratic moves that really resulted in little to no net progress.

It’s a sign of digestion and indecision and could lead to a decent counterswing up.

I think I may be converting my research and trading to the S&P 500 now. Should be interesting.

Yeah, I’ve been looking at the QQQQ but lately I’ve been concentrating on the SPY. It looks to have more volume and better recognizable patterns for me. Its also a broader index!

I like the @ES product as well. It’ll be interesting to see your posts when you switch. When do you think you will switch?

structure is a keyword for me- quicker i can define a structure i can define a risk reward setup to trade. keep up the good posts.

You mention that the $1.00 gap down is just on the threshold of odds to fill. Can you explain that a little more?
Thanks