Today’s PA had all the signs of ranging PA:
- 169 ran straight through the middle – and was horizontal
- new HOD sold and LOD bought
- reacting at any and all levels with pull-backs
When the market is doing this, I need to make value trades and definitely not trade breakouts. The other worst kinds of trades to take are entries in the middle of nowhere, right slap in the the middle of the Bolli Bands. They will always get stopped – they have to because the market is vibrating around the moving averages and mean-reverting – rather than breaking and reversing.