- The MKT is in a sideways digestive position with a slight positive bias.
- On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal. UP and UT1 REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any UP FADE trades should get confirmation first.
- On the BUY side UP BREAKOUT strategies are valid but should expect a laborious trade. Work any position, selling into emotional surges and re-entering on any sharp pullbacks. Expect a choppy trade and be aggressive on minimizing profit give-back. DP and DT1 FADE and REVERSAL strategies are recommended.
- With an MC Value of +1 and the R Level at the DP, there is a slight positive bias to the trading session today in the DA. However, the positive bias was quickly negated by the penetration of the R Level in the overnight session. The initial SELL DP BREAKOUT signal should be avoided as the market could have been producing a false breakout. With that being said, the market rallied back to the R Level, where it held resistance. The markets inability to trade above the R Level serves as confirmation of the shift in sentiment, and the SELL DP BREAKOUT strategy could be executed after the market failed from the R Level around 1:30 A.M. Failure from this important Price Map level sets the tone for the remainder of the trading session. The market sold off quickly to the DT1, churned around that level for a bit, then continued lower around 8:30 A.M. Although this trade required patience on the part of the trader, the market eventually traded down to our price target, DT2, and proved to be a profitable trade.
No comments:
Post a Comment