I wasn’t trading today because
This is the cash trade at the close of Tuesday 20th:
This was the H1 chart before the open today and the blue TL from cash chart is shown on this one too.
The key things to notice about this chart are:
- The market is up 100pts ON.
- The impulse channel down has been broken to the upside.
- The important high from yesterday’s afternoon session has been exceeded.
These tell us – unless this reverses during the futures session – that we need to get long.
‘The new bear market’ headlines are appearing in the news, so the sell-off is becoming part of the popular consciousness, setting up the perfect conditions for a reversal.
As expected, we saw a nice, strong move today which went straight for the TL I had been watching. Here’s the M5 chart of the day’s PA.
Active key levels and trend lines
Market opened just below CBOL & R1 and active levels were:
- Confluence at CBOL, R1 & 2 fibs
- Confluence at Y’day high, weekly S1 and RES 2.
- Reversal at critical cash chart TL
Which strategies worked?
With RES 1 broken
- It was not possible to go long at the cash open because it was straight into CBOL, R1
- 3Min Bolli at the first confluence
are(CBOL, R1 and 2x fibs) worked a treat.
Although this trade is counter the ST trend, by the time the market hits the KL the first impulse is over and price is no longer hugging the Bolli Bands.
- The next KL was the confluence at
y’dayhigh, weekly S1 and RES 2
Again, this trade was against the ST trend but the market had begun ranging above the KL and with confluence at three important levels plus a level to aim for (CBOL etc,)
And a really beautiful trade today was the retest of the cash chart TL discussed over the last few days. This was also R1 and the low from the previous impulse move (ended Nov 13).