- The MKT is in a sideways digestive position with a slight positive bias.
- On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal. UP and UT1 REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any UP FADE trades should get confirmation first.
- On the BUY side UP BREAKOUT strategies are valid but should expect a laborious trade. Work any position, selling into emotional surges and re-entering on any sharp pullbacks. Expect a choppy trade and be aggressive on minimizing profit give-back. DP and DT1 FADE and REVERSAL strategies are recommended.
Today's PRICE MAP Performance for BP
Wrap Up
- Today in the BRITISH POUND there was a "false breakout" of the CRITICAL RANGE that allowed JS traders to capitalize on the opportunity. The market was in a NEUTRAL DIGESTION market state with the expectations of trading sideways within the CRITICAL RANGE (UP-DP). In order to confirm a breakout from the Critical Range, the market should breach the minor level above the UP (1.5165). Since the market FAILED TO CLOSE above this level, the SELL UP REVERSAL strategy was still an opportunity. Looking now to our NON TREND TACTICS, JS traders know to key off of the momentum oscillators. Major BEARISH DIVERGENCE is clearly visible in the RSI and has been forming since around 2:30 am. This was our "tell" to accept the SELL UP REVERSAL strategy with a profit target at the DIR.
