This was textbook ranging PA: the 169 MA goes straight through the middle, key levels are respected and new highs are sold and new lows get bought. And as expected, this PA context gives us some lovely 3Min Bolli setups.
How and when can you know that this is likely the best strategy to use?
Sign 1 – the PA was stuck between two important cash chart TLs. While it stayed between those two levels it was in the Neutral Zone, meaning that direction is not decipherable.
Sign 2 – SUP 1 and Y’day low is bought and price gets back to 169
Sign 3 – price reverses almost exactly from the
All the successful 3Min Bolli trades show that this PA continues to range. The mindset is: “so far we have ranging PA, this could change at any moment but until the market tells me something else is going one – by moving outside the Neutral Zone, or by shooting through levels, my best available plan of action is to trade my 3Min Bolli.”