The development of a Distribution continued.

In this post I have chosen the Dow Jones E-mini futures contract as an example.First of all , if we sold the market above the 23% re tracement line , and bought it below the 75% retrace ment line we would have had some good trades.These levels both define the outer limits of the range, or in stastical terms the thrid standard devation of the bell curve distrubtion.
Now our beginning came from a point of effeciency ( arrow ) in the previous range , where all the mavs converged. This market is in it's fourth and final stage of it's development within this range. We can see that our maves are drawing together once more. Of the 232 half Hr time slots it has taken to produce this range 38 of them or 16% have traded at the main value price of 11634 , right on the 38% retracement level.It is not outside possibility that if we again accept prices above this level the market could be set to move higher.Current action has rejected that level , so it's a time for wait and see.With 38 Half Hr hits and the mavs converging it time to be alert.below 11580 and it could signal more down side , and above 11634 and we have an upside possibility.I'm happy to join in once it gets moving.Click on each chart to get a more detiled view.The best way to get a feel for what I have outlined in this post is to identify it on your own chart . Start with a blank chart of the dow , and draw a rectangle or square around the 4 steps I have shown on the bottom chart in this post.learning to identify where we are in the porcess puts you in control of the market and not the other way around.Go on have a go ..the mavs are 144, 55, and 21. the chart is 30 mins..put on the fibs , they can give you the bell curve without the overlay bell curve ..and just see if you can't see what I have described.


This chart below shows the blue profile overlay in the chart above , in it's daily profile sections. Combined it is the blue profile.The widest part of each profile is highlighted to show the price on the day which had the most hits.Above that line prices attracted sellers , and below it the prices encouraged buyers to participate.


This chart below shows the 4 steps of development.
1. is our initial vertical move away from the previous distribution.This move occoured after the previous distribution became effecient, i.e buyers and sellers reached a balance , this can be seen to be confirmed as the moving averages converge at a point.
2. The second step , is the range that stops the vertical movement , with the price action moving horozontally within the range of the initial move up.
3. The third step ; the market rotates about the step 2 range finding some extenshion.
4. The fourth step moves almost right through the whole range , and our moving averages are drawing together here , as the market draws towards another medium term effeciency in preperation for its next move. The important thing is to recognise which stage of development we are looking at . This puts us in control of the market , often the market will skip one of these steps and that tells you that something is exerting an influence that needs to be respected.If we know which step we are in we can join the procession, no need for crystal balls here, if the market decides to move off in a new step one higher now , we can join in and know which part of the new development we are involved in.