The market on 20th Nov looked tricky to trade as levels were not respected, implying continuing downward trend and then we saw a sudden reversal.
With a big gap down and a very KL broken, you can look to fade KLs at the futures open, especially if price moves outside the 2std. dev Bolli Band. A great trade this morning, would have been to sell the brief move up to the 11200 BNR just after the futures open.
What’s most interesting about this PA is the role played by the 169 in controlling prices, making it a great level to to fade moves into. It’s a cracker every time – and especially when the market fails to make a new high of the day and puts in two LHs instead.
It’s also good to note how fib extensions can be used as levels when there is very little price information on the left of the chart.