Daily chart

I wasn’t trading today because I was studying executive function to develop content for the sister site , but here’s a summary of what happened.

Two TLs from the daily cash chart are controlling direction. Yesterday the market opened above the lower blue TL and that gave a bullish tone to the whole day until we hit the pink TL. So today, if the market could get above the pink TL, we would see more upside but the likelihood is, given the overall bearish picture that it would represent from pretty hefty resistance.

This is what the H1 looked like just before the futures open.

The key things to notice on this chart are:

  • The market formed a clean, non-volatile up trend yesterday until it hit the cash market TL.
  • A compression formed ON against the major TL (pink line on the cash chart)
  • The pink circles are Key Swing Points (KSP)

What happened?

The TL broke and the market headed straight down to yesterday’s close and then ranged for the rest of the day. It retested the Tl – which was also R2 – and rejected it again.

Active key levels and trend lines

  • The TL as described above
  • Weekly S1
  • Yesterday’s low
  • Fibs

Which strategies worked?

TL break adjusted for entry into Close and 169

The TL gave you the whole day’s move with a nice tight stop.

But because the TL break is straight into the close and the 169, you would have needed a wider stop an usual – an entry below the close with a stop that included the 169 and a retest of the TL
Using Impulsive/Corrective sequences to short

From then on, with the critical TL rejected, the best strategy was getting short using each pull back.

Levels are not respected which means we have a trending move – which means the strategy is to trade TL breaks of minor pullbacks
3Min Bolli band

The 3min Bolli set up at the retest of yesterday’s lows was an imperfect setup because the level was missed by 3pts, but the Bollis and pin bars indicated a buy.

The market drifted down to the level which is not in the trade’s favour, BUT there was confluence there with yesterday’s low, 2 fib levels, a horizontal Bolli Band and the market is already 150pts down from the futures open.

Fade 169

Another possible set up was to fade the 169. This was not a trade to hold on to because of the number of other levels in the area, which needed to be used as 20-30pt targets.

On the first trade the market reverses at CBOS, but then it makes a new high which is rejected again. given the context and the horizontal Bolli Bands, this was a trade either to allow to go negative or make two entries.

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