- Technically the MKT momentum is counter trend and will need a strong showing to overcome the underlying negative threat.
- On the SELL side REVERSAL strategies off the UP or near the previous session or move high will work best. DIR or DP BREAKOUT should just go. A better option is to FADE positive reactions against the DIR after a negative signal.
- On the BUY side accept FADE and BREAKOUT strategies. BREAKOUT should expect some "starts and stops" The trade is corrective and sharp positive surges can be erased in a hurry. FADE will work if the corrective state is going to continue. REVERSAL strategies are a lower probability as a break in structure should be considered a potential negative shift in momentum.
Today's PRICE MAP Performance for GC
- Today serves as a perfect example of the power of JS Services Strategy Based Trading approach. The market has produced a BEAR TREND CORRECTION Market State with an MC Value of -2. With the R Level above the UT1, traders should look for a continuation of the BEAR TREND below this level. With that being said, the market has produced a corrective signal and traders should look to get short on any rally below the R. Our market commentary tells us that the SELL UP REVERSAL strategy will work best. After respecting the UP around 5:30am, the market gave us a "head fake" above the UP and quickly sold off back into our Critical Range. This presented traders with the opportunity to execute out SELL UP REVERSAL strategy with the expectation of a resumption in the bear trend. The market sold off sharply after the reversal signal, stabilizing at the DIR briefly before selling off to the DP at 10am where profits could have been realized.
