Continuing with the idea of looking at confluence between certain "units of movement", the chart below was made at the close of yesterday (close of 2/17 for 2/18 trading). I set my script to use "tomorrow's" HLC, and PP based on the day that just concluded (for 2/18 day's trading). This gave the following levels (red lines). My thought was if we got down to the 1334-1335 area, it could mean a long up to the 1342-1343 area (indicated by the long blue arrow). If we got extra bullish, perhaps up to 1345. Otherwise, if we got below 1328, it could mean a pretty painful day (red arrow).
The chart below show the same levels as above, but with today's price action filled in. As you can see, we came very close to that 1334-1335 area and made it up to the 1342-1343 area (see blue arrows). If we had more day, it looks like it wanted 1344-1346. Interesting.
Here is another view looking specificly at the range from yesterday's High to Close (red arrows). As you can see, the movement went from a low at -1 unit, then up to +1 unit, then back to center (and more). Interesting.
Okay, so what about Monday? We now know Friday's (today's) HLC and PP, so what are the levels for the next trading day? So glad you asked. The red levels shown below are the levels generated by our "Unit of Movement" script. What does this tell us? For one, Monday is President's Day and will be a half day for the ES anyway. Thus, it will most likely be choppy and sideways. So, I wouldn't be surprised to see it just chop around in that messy 1341-1346 range where all those red lines are. Coincidently, Monday's R1 will be at 1345.25, right in the thick of things. Since, R1 is near the top of that range of red lines, it may provide a short scalp. We shall see. Speaking of the Mid-1340's;
It may be an important area to watch.
Lesson