Larry Williams Oops pattern today on very high volume. The Oops pattern conditions include today’s open below yesterday’s low and today’s close above yesterday’s low (or close). The pattern signals panic by the general public and professional traders stepping in to take advantage.

Today’s Oops pattern was "stronger" than normal with:

• Open below the low of both yesterday and the day before
• Close above the close of both yesterday and the day before
• Very high volume of 3.2 million contracts traded

I also had "End of Trend" signals on multiple time frames catching the low of the day. The charts below show 27 minute (15 bars per day), 45 minute (9 bars per day) and 81 minute (5 bars per day) charts. The "End of Trend" signals are plotted automatically by my version of the Hilbert Sine Wave.

End of Trend Signal (Emini 27 minute)

End of Trend Signal (Emini 45 minute)

High Volume Reversal (Emini 81 minute)

The Better TRIN swing trading systems have also signaled long, entering at both today’s low and close.

My best guess is that we’ll get a pullback early tomorrow and I’ll be watching the 1,280 level. Then a continuation of this short covering reversal. Markets have a tendency to rally at the beginning of the month and into a holiday. However, we’re still in a down trend and the weekly Hilbert Sine Wave still needs to make a cyclical low.

Good luck with your Emini trading.

Larry Williams entry pattern explored in this article. I don’t want to divulge confidences so I won’t be publishing the exact code for the pattern – just talking about market psychology and a lesser known Larry Williams pattern.

Friday was a bad day. The Dow was down over 300 points, closing near the lows on relatively large volume. News over the weekend was about the weak US economy. Articles and forum questions started appearing about how to trade in a Bear market.

Then the Asian markets opened with red everywhere. The Nikkei ended down 4.5%, the Hang Seng down 3.1%, the All Ords down 2.9%. Europe then followed suit, gapping lower but recovering some ground by the close. The FTSE ended down 1.1%, the DAX down 0.9%. Meanwhile the Emini was down 15 points in the overnight session.

Having seen all that you’d be nuts to be a buyer on Monday. Right? Well Larry Williams calls that Long set-up "The Trade No One Wants" – and he’s right. You’ve gotta have conviction – or something else – to be a buyer on Monday.

The equity curve from taking that Long trade on Mondays is shown in the chart below. You can use a Bailout Exit or hold for a week with the usual large stop that Larry Williams suggests. The results are similar – profit factor greater than 1.5 and percent profitable around 60%. Not outstanding results but profitable nonetheless.

Larry Williams Entry Pattern Performance (Emini daily)

Where to from here? The Emini has tested the 1,320 level 3 times now (once in the overnight session and twice in the day session). The Better TRIN Oscillator is at -21 and not oversold yet. The down trend has not been resolved yet with an "End of Trend" pattern in the Better Sine Wave (27 or 45 minute time frames). My best guess is that any strong rallies will be sold again and we’re likely to see more trading range activity.

You can read more Larry Williams articles here. Good luck with your Emini trading.

The Emini closed down 1.00 point at 1,452.75 on Monday. We had a successful Larry Williams Oops Pattern with the open above yesterday’s high (just). A short trade was triggered at 1,458.50 (yesterday’s high) and looks like it will generate a nice profit.

Asian markets were hit hard last night – the Chinese market was down almost 9%. As I’m looking at the Emini now, the Oops trade looks like it will net 14 points or US$700 per contract traded.

Just a recap of 3 trend oscillator charts today. Based on these, it looks like the market could continue down for a couple more days, unless the gap down open today is too hard and the professionals start buying.

The chart above is the Trading Index (TRIN) oscillator. It is usually first to turn down and has now just passed the zero level and reads -6 on a scale of +100 to -100.

The next chart (above) is the Open Close oscillator, labeled Secret #2. It also turned down a couple of days ago and currently reads -26, again on a scale of +100 to -100.

The last chart (above) is the Smart Money oscillator, labeled Secret #3. It is usually the last trend oscillator to move but is well below the zero line at -47, again on a scale of +100 to -100. You can also notice a bearish divergence pattern with higher highs in the Emini and lower highs in the oscillator.

Good luck trading the Emini today.

The Emini closed down 1.50 points at 1,460.50 on Wednesday. The Emini gapped down at the open, found support at 1,454.25 and then closed near the highs. That makes it 13 out of the last 16 days where the close has been above the open – wow! Is this smart money buying? The answer has to be yes, since the Emini is up over 34 points from the low around 1,426 three weeks ago. But will it continue?

The chart above shows daily Emini data with one of my 4 trend oscillators (Secret #2). This oscillator measures the difference between the opening change (yesterday’s close to today’s open) and the closing change (today’s open to today’s close). The oscillator ranges from below -100 to above +100. Today’s reading was +155, the highest reading since 14 September 2006.

This indicator shows how strong the open to close change has been during the last upswing. However, the current high reading would suggest that this pattern of higher closes may be coming to an end. This is now the second of my four trend oscillators to reach a high – the first trend oscillator to peak, the Trading Index Oscillator, closed down today.

Will we see a Larry Williams Oops pattern tomorrow (open above yesterday’s high of 1,461.75) and professional profit taking?

Larry Williams failed Oops pattern today. The Emini closed up 3.75 points at 1,393.00 on Thursday. Once again the advance continues but today there were a couple of signs of weakness. What is a failed Oops pattern?

The Emini gapped up at the open 2.75 points at 1,392.00. The professionals immediately stepped in and took profits, driving the market down during the first 1 1/2 hours to a low of 1,385.00. The rest of the day was spent slowly clawing back above the open to hit a high of 1,395.25 during the last hour of trade. The Emini eventually closed at 1,393.00 and above the open. Today both range and volume were above average at 10.25 points and 1.1 million contracts respectively.

Larry Williams Oops pattern

In previous articles I have mentioned Larry Williams and one of his more famous and well-publicized ideas – a pattern he calls Oops.  The pattern occurs when the open of a daily bar is above yesterday’s high or below yesterday’s low. Trade entry is signaled when the market touches either the high to go short or the low to go long.

The theory behind this pattern is that non-professionals check their charts at night and place orders for the next day’s open. Whereas professionals wait for the market trend to develop during the day and place their trades later in the day. Therefore, if the open is substantially above or below the previous days trading range, this indicates the non-professionals are panicking and desperate to enter the market. Professionals will use these opportunities of extreme emotion to place trades in the opposite direction to the non-professionals.

Failed Oops pattern

The chart above shows that the Oops pattern failed today with the Emini eventually closing above the open. Other failed Oops patterns over the last three months are also shown. As you can see the pattern produces a mixed bag of results – I wouldn’t use this signal alone for trade entry. However, today’s Emini market action shows how resilient this uptrend was today.

We also had the Trading Index (TRIN) oscillator turn down with Trading Index divergence today. You can read more about this indicator by clicking on the category to the right.

Click the image below to check out Larry William’s latest book.

Larry Williams Oops pattern follow through today. The Emini closed up strongly at 1,358.25 on Wednesday. Yesterday we had an Oops pattern that was followed by a strong trend move today. Keep reading this article to understand how to identify this useful pattern, originally identified and named by Larry Williams.

Larry Williams, trading guru

Larry Williams is another of my favourite trading gurus. I’ve attended his “Million Dollar Challenge” workshop, seen him speak on a number of other occasions and read almost every one of his books. There is no question in my mind that Larry Williams is a trading genius as well as an extremely entertaining educator.

Larry Williams’ books are too numerous to list here. However, I would recommend his “Long-Term Secrets to Short-Term Trading”. This book focuses on trading index and bond futures and is particularly useful for trading Eminis.  A classic.

Online, he appears to come in for a lot of criticism, which I feel is totally unwarranted. But that seems to be the nature of the web – so many people commenting when they’re not qualified to offer an opinion. Just my two cents.

Oops pattern indicates extreme emotion

One of Larry’s more famous and well-publicised ideas is a pattern he calls Oops. The pattern occurs when the open of a daily bar is below yesterday’s low or above yesterday’s high. Trade entry is signalled when the market touches either the low to go long or the high to go short.

The theory behind this pattern is that non-professionals check their charts at night and place orders for the next day’s open. Whereas professionals wait for the market trend to develop during the day and place their trades later in the day. Therefore, if the open is substantially lower or higher than the previous days trading range, this indicates the non-professionals are panicking and desperate to enter the market. Professionals will use these opportunities of extreme emotion to place trades in the opposite direction to the non-professionals.

On Tuesday, the market opened below Monday’s low and then rallied during the day to close above the low. Today the rally continued and the market moved strongly up on quite high volume. On the chart above the Oops pattern is identified automatically by my charting software and a text annotation added to the chart.

This is one of my favorite patterns but use it carefully

Remember don’t use this pattern alone, combine it with other non-correlated market indicators to identify high probability market turning points.

Click the image below to check out Larry William’s latest book.