The market was unlikly to fill the closing or ex-gaps from the previous day which were both more than 100 pts higher, but there was still an open gap from Friday 30th Nov at 11257 and this provided a perfect level to fade.

The three trading day old gap was also at confluence with S2 and Fibs, increasing the  probability of a successful outcome.

This required a fast entry, but as long as the 10pt stop was above 12260 which was RES 1, the trade is still valid. To add to the trade you can use an Igloo once the first trade is 70% off.

The level setup again later in the day and could be traded again – this time for +50 and still running. The reasons why this trade setup is valid despite a higher high and the level already having been hit  (these factors would cancel a counter long- and short- 3Min Bolli setup at a level):

  • The new high is just a retest of the Nov 13 low and big impulse bar sees no follow-through.
  • Price is at the 3 Std. deviation band
  • The trade is in line with both the long- and short- term trends.
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