- Technically the MKT is in a positive posture and as long as it continues to hold structure, further gains should be expected. If 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 TF
- A picture says 1,000 words...especially in the E-MINI RUSSELL 2000 market today! Today's Price Map performance in the TF market highlights the importance of Strategy Based Trading, and how profitable it can be! First, we define Market Structure. The Price Map identifies key levels for the day, the most important being the R Level, the level at which we are looking to buy above, and sell below. Second, we consider Market State. The MC Value of +6 and the BULL TREND Market State tell us we are looking to BUY the market today. Finally, we have Market Strategy. Our market commentary tells us that we are to accept ALL BUY, FADE, and REVERSAL strategies off major levels, as long as the positive sentiment remains intact. As a trader, our highest Risk/Reward trade is a BUY R FADE with the expectation that the R Level is the "breaking point" for the positive structure. As it played out, at 10 A.M. the market touched the R Level at 805.10 and gave us a prime opportunity to enter the market on the long side. This trade turned profitable immediately, moving steadily through the DP, and then accelerating through the DIR and UP! The market traded as high as the minor level above the UP, 823.10, and proved to be an extraordinarily profitable day made possible by JS Services Strategy Based Trading approach.
