This was a ranging directionless day – the kind of day when you to trade the 3min Bolli Band system but not TL breaks. Were there any clues that this kind of day was setting up?

From the higher tf chart you can see that the market is extended but showing signs of weakness on H1 as the bull/bear flag forms. The market is at a critical point here: the zig-zag could break up and continue the up trend or if the TL supporting it breaks, then we could see a fast move to retrace the big trending up move. So the market needs to think about this and see which side is going to win.

The futures range was 20 pts and the first hour of cash trading saw a range less than 40pts and KLs were respected and reversed. These are the characteristics of ranging PA.

This chart show how well the 3min BB system works in PA like this as it captures extremes of the day as the market reverses at predictable levels.

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