There was a song by Kenny Rogers and the First Edition a couple hundred years ago called Condition My Condition Is In or something like that. Anyway, a thought derived from that is a technical condition I and many other technicians call technical compression. That is in part what is currently going on in the ESM06.
Technical compression is when a solid trend is in place and indicators are oscillating to and fro across extreme elevations, overbought or oversold. Synchronous technical events circumvent much of this activity if the chart duration is great enough to afford genuine signals or if other proven tools are used. I do both.
I am currently watching the ES in 377, 610, 987, and 1597 tick charts. Synchronous events usually pull me through thick and thin. But another self found tool I use in these periods is something I call the "Body Average".
Synchronous technical events have wandered without production since my short at 1279. But my Body average, ba, remains long at the time of this post using a 987 tick or greater duration chart. ba reconstruction is very simple - an 8ema at the close, and an 8ema on the open.
Prolonged ba periods without intersection identify certain compression episodes. These are dangerous periods in which to flip a position. Using a greater yet comfortable duration chart with ba can really help identify ends of these compression episodes and capture an extra dollar or two.
Of course, like anything else, it requires practice and acceptance nothing is perfect.
I'm still confident my synchronous event templates will prevail to the short side, but this ba thing is something easy to reconstruct and use with practice. It even outperforms synchronicity on ocassion. |
