There were some conversations last evening that I found helpful, and assume were legitimate evaluations of how the blog had strayed, perceived and or actual, from the original intent.
As such, effort will be made to bring content only, to the post and this blog, that will more align with the original intent of discussing the market.
LAST EVENING
A symmetrical triangle was developing on the 5m ES chart. The tendency is to breakout in the direction of the trend. We were declining from the high around 1331 and could see a return to the 29 area, but more likely would see a BO lower.
Price Action failed to break a major MA, and was the short opportunity. It broke in the expected direction.
As with any setup, once this BO was resolved, the market reads will reset.
AT THE OPEN
The initial trade was a long and short in the pre-open using a 3m chart. The first entry for the 5m was the pullback to the EMA. This is an acceptable entry. We have higher lows ( bullish bias) and this is the second hold by the EMA area. (bar 3, b7-8).
The next opportunity for consideration was the ascending triangle. The flat TL top is the focus of a BO which has the tendency to follow the trend. Additionally, we have rising support at the EMA.
The slow midday was returning to the AT area. This developed into a bearish channel identified by b61.
With trend trading is preferred, and shorts would be acceptable along the upper TL.
B69-70 was at the lower TL and a major MA. This support allows for a long position with a target at the next MA's above. These area can be key reversals, and the objective is to take part off at +1 and set your stop at break even. At +2.25, move your stop to +1 and trail the price action. You are trying to run with the trend, should it develop, or stop out in profit. In this case, the market hit the target area but continued the channel down.
No comments:
Post a Comment