FBO REVERSAL TREND

It has been stated in other blog post, in the webinars, and in the chat room:  we use the BOT trading ranges to predict market biases, and when one range has a failed break out, we expect price action to move to the opposite range.

Today, the SBOT had a FBO, and we discussed in the webinar that price was expected to run to and test the LBOT.  When a BOT does break, a trend is expected.  Today, that trend was long.


TODAY:  TF AND ES


Our TF traders had a very nice day following the BOT moves.

click to enlarge

TF was in the lower range with the EMA running between the MBOT and the SBOT.  There is a bearish channel heading toward the SBOT, and breaks below the short target.  However, the BO is quickly reversed with a MAXT.  Long at the SBOT and hold for the ride.

The interesting point about the MAXT reversal, it occurred in all four markets and was the catalyst for longs in both the TF and ES.  Part of out trading strategy is to trade with the markets.  This goes beyond trading with the trend, as it requires support of our trade position confirmed in other markets.  The more confirmation, the higher probability that the trade will be profitable.

MAXT reversal in all markets, creating a FBO short that was expected to run to the opposite range target.  It did.



ES TODAY:

The ES was not in a bear channel.  It was essentially trading sideways  with a slight bullish TL  moving toward the MBOT.  Looking good going into the open.  Then a MAXT hits, a doji, and another MAXT.  A TL long followed by a 50CB short.  Another short was targeted at 1329 with the target at the +5 from the MAXT.

The markets, including the ES, pushed below the SBOT but were reversed by a MAXT.  The pros got their market +5, MAXT high to MAXT low.

The long was at the TL+, EMA+, SBOT reversal.  Targets were set slightly below and above the LBOT, with the thought that the market would get their +10.

Ding.