- The MKT is holding firm but remains in a corrective posture. On the SELL side accept UP FADE signals only on the 2nd or 3rd confirmation. REVERSAL strategies should only be done off the UP or the previous session high point and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL DP BREAKOUT strategies will work better as a signal for a DIR FADE with profit targets at the DP.
- On the BUY side accept REVERSAL signals off all major inflection levels, expecting the underlying positive momentum to resume. DP FADE strategies will work better with confirmation as the MKT is in a corrective state and will be probing lower looking for soft spots. Work any BUY DIR and UP BREAKOUT strategies as any positive shift in momentum has the potential to be the start of the next leg higher.
Today's PRICE MAP Performance for SF
- Being cognisant of the Market State and applicable Market Strategy are two essential elements that define great traders. Today in the SWISS FRANC futures market we had a perfect illustration of how JS Services definition of Market State can help traders maximize profits. With an MC Value of +4, the market is still positive; however a corrective posture is in play. With the R Level just above the UP, the analyst is telling traders that the corrective signal remains in effect below this level. Our Market Strategy tells us to accept SELL UP FADE trades only on the 2nd or 3rd confirmation. The market rallied a little after midnight, falling short of the UP. It then made another attempt at the UP around 4:30 A.M, from which it failed yet again. On the third attempt at the UP, the market failed to produce a higher move high and proved to be our 3rd confirmation signal that we were looking for. Having been presented with our 3rd confirmation at the UP, a SELL UP FADE strategy should have been executed just after 9 A.M. The market wasted no time in confirming that the trade was the correct one as we witnessed a dramatic sell off. Our typical profit target is 2 major Price Map levels from our entry point which, for this trade, would have been the DP. The market fell sharply to that level, allowing minimal time in the market and maximal profit realization. By understanding JS Services Strategy Based Trading approach, a trader could have realized a full days work in a matter of minutes.
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