EMINI S&P 8/9/13
The New Monthly Profile for the month of August on the ESU13 is suggesting for traders to expect a spike in volatility this month. This is depicted through Zone-Trader Philosophies combinations between the Neutral Zone and the Persistence Zone.
Neutral Zone is MR1 to MS1 and royal blue with the Point of Control or also known as the Zone-Trader Pivot falling in the dead center of the zone and is white in color.
Persistence Zone is created by 2 orange lines and is a zone from the prior profile, where the market traded for the longest period of time and represents where the fight was the greatest between the bulls and the bears.
Wherever the market trades for the longest period of time or what price area this occurs in, tells us traders that there was an even number of buyers and sellers for the majority of time within this depicted price area.
When combining the 2 zones to create the PZ/NZ combinations there are four possible variables, in this case the monthly profile currently is displaying variable 3, the PZ is engulfing the NZ.
Meaning the top of the PZ orange line at 1712.75 is higher then the top of the Neutral Zone or MR1 at the price of 1705, and the bottom of the PZ orange line at the price of 1667.50 is lower than the bottom of the NZ or MS1 at the price of 1690.50.
Hence the term engulfing the Neutral Zone is completely inside the Persistence Zone. This PZ/NZ combo again tells us to expect a spike in volatility any time we see it occur on any of the five profiles.
The reason for this is because the Balanced Oscillation Area which is price area from the midpoint between the Zone-Trader Pivot and MR1 down to the midpoint between the the Zone-Trader Pivot and MS1 is residing inside where the fight was the greatest the prior month.
The Balanced Oscillation Area is where the market fluctuates while in a balanced state as it hovers around and or back and forth across the Zone-Trader Pivot or Point of Control, prior to attempting to make a Bullish or Bearish Breakout.
When prices re-enter the or are currently inside the Persistence Zone the fight that took place during the prior profile period resumes, and volatility increases as the Bulls and the Bears begin to battle for control of the market on that specific profile or time frame, in this case the Monthly.
Combining the two, once more tells us traders that whenever the market is in a balanced state on the month it will begin a major battle between the bulls and the bears for control of the future direction of the market. So the impulse wave of the market decreases, while simultaneously the variance increases.
No statistical indicator is gonna provide traders with this specific information ever, especially the actual prices that the volatility spike will peak at. Basically providing traders with the specifics of the current market condition on the month in this case and what types of trades work best in this environment, prior to occurrence.
Now us traders can adapt very quickly to changes in the condition of the market cause the current change is identified and explained by the Zone-Trader Philosophy. Reversion trades tend to work best in this type of environment. That does not mean the market cannot breakout and establish a trend, but the probabilities of this occurring are low in comparison to the market attempting to breakout or attempting to establish a trend and failing, and ultimately reverting back to the Point of Control or Zone-Trader Pivot.
This specific PZ/NZ combination occurring also tells us that most likely on the Quarterly Profile we may be starting to see the beginning of a reversal in the current trend, or a major retrace in prices. In this case again this is assessed on the Quarterly Profile because Zone-Trader Philosophy tells us we must look one sequential time frame higher within the profiles. So combo is occurring on the Monthly Profile, hence the Quarterly is the next time frame higher.
We now know the underlying psychology of the market within 2 specific profiles, and what trading condition to expect and which types of our rules to use that work best, a complete road map to tread the murky waters of the Derivatives or Futures markets.
No statistical based indicators are going to provide the trader with this specific information and or the change that is occurring in the current condition of the market.
Zone-Trader Philosophy the Best Intuitive Based Trading Methodology In The World. Keep an eye out for our new trading course soon to be released and it will be packaged with the Zone-Trader Indicators for all five profiles. The crystal ball of technical analysis.
Here is pic of the Monthly Profile!!!!
The New Monthly Profile for the month of August on the ESU13 is suggesting for traders to expect a spike in volatility this month. This is depicted through Zone-Trader Philosophies combinations between the Neutral Zone and the Persistence Zone.
Neutral Zone is MR1 to MS1 and royal blue with the Point of Control or also known as the Zone-Trader Pivot falling in the dead center of the zone and is white in color.
Persistence Zone is created by 2 orange lines and is a zone from the prior profile, where the market traded for the longest period of time and represents where the fight was the greatest between the bulls and the bears.
Wherever the market trades for the longest period of time or what price area this occurs in, tells us traders that there was an even number of buyers and sellers for the majority of time within this depicted price area.
When combining the 2 zones to create the PZ/NZ combinations there are four possible variables, in this case the monthly profile currently is displaying variable 3, the PZ is engulfing the NZ.
Meaning the top of the PZ orange line at 1712.75 is higher then the top of the Neutral Zone or MR1 at the price of 1705, and the bottom of the PZ orange line at the price of 1667.50 is lower than the bottom of the NZ or MS1 at the price of 1690.50.
Hence the term engulfing the Neutral Zone is completely inside the Persistence Zone. This PZ/NZ combo again tells us to expect a spike in volatility any time we see it occur on any of the five profiles.
The reason for this is because the Balanced Oscillation Area which is price area from the midpoint between the Zone-Trader Pivot and MR1 down to the midpoint between the the Zone-Trader Pivot and MS1 is residing inside where the fight was the greatest the prior month.
The Balanced Oscillation Area is where the market fluctuates while in a balanced state as it hovers around and or back and forth across the Zone-Trader Pivot or Point of Control, prior to attempting to make a Bullish or Bearish Breakout.
When prices re-enter the or are currently inside the Persistence Zone the fight that took place during the prior profile period resumes, and volatility increases as the Bulls and the Bears begin to battle for control of the market on that specific profile or time frame, in this case the Monthly.
Combining the two, once more tells us traders that whenever the market is in a balanced state on the month it will begin a major battle between the bulls and the bears for control of the future direction of the market. So the impulse wave of the market decreases, while simultaneously the variance increases.
No statistical indicator is gonna provide traders with this specific information ever, especially the actual prices that the volatility spike will peak at. Basically providing traders with the specifics of the current market condition on the month in this case and what types of trades work best in this environment, prior to occurrence.
Now us traders can adapt very quickly to changes in the condition of the market cause the current change is identified and explained by the Zone-Trader Philosophy. Reversion trades tend to work best in this type of environment. That does not mean the market cannot breakout and establish a trend, but the probabilities of this occurring are low in comparison to the market attempting to breakout or attempting to establish a trend and failing, and ultimately reverting back to the Point of Control or Zone-Trader Pivot.
This specific PZ/NZ combination occurring also tells us that most likely on the Quarterly Profile we may be starting to see the beginning of a reversal in the current trend, or a major retrace in prices. In this case again this is assessed on the Quarterly Profile because Zone-Trader Philosophy tells us we must look one sequential time frame higher within the profiles. So combo is occurring on the Monthly Profile, hence the Quarterly is the next time frame higher.
We now know the underlying psychology of the market within 2 specific profiles, and what trading condition to expect and which types of our rules to use that work best, a complete road map to tread the murky waters of the Derivatives or Futures markets.
No statistical based indicators are going to provide the trader with this specific information and or the change that is occurring in the current condition of the market.
Zone-Trader Philosophy the Best Intuitive Based Trading Methodology In The World. Keep an eye out for our new trading course soon to be released and it will be packaged with the Zone-Trader Indicators for all five profiles. The crystal ball of technical analysis.
Here is pic of the Monthly Profile!!!!
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