Monday, May 6, 2013

Woodie's Pivots for the Option Expiration


Something that we traders notice all the time, is clearly evident on the 4181 Tick Interval, how price reversed upwards just prior to the 25 period LSMA crossing under the 34 Period Exponential Moving Average. The Index is only a few handles away from R2 at 1618.38, and R3 at  1643.75. One thing I'm noticing on these higher interval Tick charts is the visually apparent fact that price is having a very difficult time maintaining an upper-hand on its 25 period LSMA. In it's failure to do so, we see a lot more top on the Sidewinder indicator. This does not mean that prices cannot go higher, but notice that the SequenceCounter indicator is 4 to 1 dominant to the downside.