Pre-open Scenarios

The market is in an uptrend within a corrective range. On the upside there are still plenty of unfilled gaps between 11070 and 11350 and there’s also the cash chart 50MA at 11097. So far, the move up looks corrective and to put in in context, we are still below last year’s lows at 11013. Yesterday’s close was around 100pts below the magical 11000 level. If we stay below there, we are set for another leg down at any moment.

ON the market has broken the H1 lower TL and the futures opened at 10831, a 62pt gap down.

What the market looked like at the end of the day

Key points about today’s PA and setups that worked
  • At the open, the market ripped straight through SUP 1 and immediately down to my SUP 2 where it saw strong buying and hit the upper TL within a few minutes.
  • On the first encounters, prices broke through the upper TL for a few points but then reversed. After each break, the market made a HL and then on the third attempt the market burst through.
  • Once it had broken the TL, the 169 + 61.8% retrace of the most recent sequence supported PA for its move above the next TL.
  • The first reversal after TL break and 169 break appeared to be in the middle of nowhere, but actually, it hit the M15 169 on the nose and promptly reversed.

How effective was my Neutral Zone? This was reacting and definitely tradeable but the 61.8% retrace of the last h1 move was more precise.
How precise were my levels? RES 1 was the upper edge of the Neutral Zone so the same comments apply. RES 2 was spot on -the gap filled and prices moved away immediately

What I did

TOTAL = +3.9R | # Trades 23 — Winners 11 — BE 0

Today’s most gorgeous setup

Buying at SUP 2 using the 3Min Bolli system. After the market powered through SUP 1, it might have put me off, but this was a monster trade.

It also gave more than one signal and therefore the potential to ad risk. Apart from the 3Min Bolli, this also set up as a level fade using a TL break and as a triangle break when price paused below SUP 1

For reference: 3 month cash chart at COB yesterday

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