- The MKT has a firm tone and as long as the integrity of the previous session low remains intact, look for excuses to get long. On the SELL side UP FADE strategies are valid but profit targets and risk management should be tight. REVERSAL strategies should be applied only at the UP and +c after an exhaustive signal. Use DP BREAKOUT strategies as a signal to FADE a positive reaction against the DIR. Only until the MKT breaks the positive structure are sell signals an opportunity.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is bid and all buy signals are valid opportunity. If stopped out at or near the low tic of a reaction and the MKT is not following through to the downside, look to re-enter using the recent squeeze low as a stop. If the MKT breaks structure, de-leverage and be more selective as the likelihood of a sideways trade is high.
Today's PRICE MAP Performance for NG
-Today in the NATURAL GAS futures market, we had an MC Value of +6 and a BULL TREND Market State. Our expectation is for a continuation of the bull trend, and as traders, we should look to get long the market ABOVE the R Level. Our Market commentary warns us that SELL signals are only valid opportunities until AFTER the positive structure of the market, represented by the R Level, has been broken. The market digested for the greater part of the morning session around the minor level at 3.573. Then, at 7:40 A.M. we get a breakout of the Critical Range at the DP. Since our R Level is at the DP, this signals the break in positive structure and allows us to execute a SELL DP BREAKOUT trade with a price target at the DT2. After selling off sharply to the DT1, the market stabilized for a bit, and eventually sold off all the way down to our expected downside target at the DT2 (3.450). By knowing where the Sentiment Bias lies within a market, agile traders could have profited from this corrective sell off.
No comments:
Post a Comment