- The MKT has produced a negative signal against an underlying positive
trend. On the SELL side accept UP FADE signals on the 1st press into the area
only. 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 traded. SELL DIR and DP BREAKOUT
strategies are aggressive but do have the potential to be the start of a larger
corrective turn. Keep risk management tight.
_ 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. DIR FADE strategies after the UP Breakout should use
greater leverage.
Today's PRICE MAP Performance for BP
Today in the BRITISH POUND futures market, our Critical Range helped define the trading range for traders. In a BULL TREND CORRECTION market state, the market has generated a corrective signal against the underlying positive trend. Any short position taken today should use strict position management as the underlying bull trend must be respected. After the Around 2:00 AM we get a SELL DIR BREAKOUT strategy that is in agreement with our R Level at the UP. As stated earlier, the underlying bull trend of the market must be respected, and profits should be taken sooner rather than later. After entering the trader at 2:00 AM, the market attempted a retest of the DIR and failed around 3:00 AM confirming our trade. The market then broke sharply and sold off to the DP, where profits could have been realized. By defining the expected trading range for the day, JS traders were able to capitalize on the corrective move in the British Pound.
