- The MKT has a slight negative bias in a difficult "choppy" trade. On the SELL side DP BREAKOUT strategies are valid but should expect a laborious trade. UP and UT1 FADE and REVERSAL strategies are recommended but profit should be taken at initial targets. The probability is to the downside today but is not a day to press it.
- On the BUY side avoid UP BREAKOUT strategies but rather FADE a negative reaction after a positive breakout signal at the DIR. DP REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any DP FADE trades should get confirmation before executing. Position management adjustments should be anticipated for all longs as sideways trading conditions can quickly erase profits.
Today's PRICE MAP Performance for NG
Today in the NATURAL GAS futures market we have an MC Value of +2 and a NEUTRAL DIGESTION Market State. Our focus today is on the MC Value of +2 indicating a NEUTRAL DIGESTION Market State. In this Market State, our expectation is that price action is going to stay WITHIN the Critical Range. With the R at the DIR, we want to accept BUY signals above this level, so our highest probability trade would be to get long from the DIR (R). Since we know that trading in this market state is expected to stay within the Critical Range, our price objective on this trade is the UP. As you can see the market respected the R level around 7:45 A.M. and rallied up to the UP, where profits should have been realized. Also, being aware that we are in a NEUTRAL DIGESTION (+2) Market State tells us that profits should be taken at the UP. By doing this, we save ourselves the headache of being in the market toward the end of the session when the price chopped around the UP.
