T-REX STRIKES

The AM release followed the special blog post last eventing:  A BREAK OUT RUN IS IMMINENT!

See the alert from last evening at the blogs.  "T-Rex" is a friendly name for a pattern where long term PA calculations and short term calculations  reach a peak (T's head) then come together in a narrow range (his jaw lines).  It signifies an extended break out is upon us. Today, look for the range runs to break for 5/10  and the 15/20 varieties.  The current bias is long. ES      1125     1122.25   1119.75 NQ      2129.5    2119.25    2115.75 YM     10830    10974   10779 TF      639.1       636.7    635.2 6E      3372    3353      3337   Rex strikes again.  It is a very clever pattern in our analysis and has produced big runs.  Today we had a long bias at the release of the ranges, tempered by a 5/10 then 15/20 run outlook.  Price tested the long BOT then retreated through the range to settle at the lower end going into the open. This is where we see the mid range hold as Resistance and price broke the SB for a bo5 run, reversed, ran the range for a LBBO5.  The market was contained in a narrow bo5 range, when the H & S pattern was completed at the SBBO5 around bars 16-20. It was at this point we see buying, but which kind?  There are two types of buying  and selling.  Buying can be for long holds or simple the covering of all or part of a short position.  Knowing the difference is valuable information.  On the other side, selling is for the hold trade or an exit-all or partial- of a long position. In the bar 6-7 area we saw a "hold" buy signal.  The actual signals have been removed, and replaced with an arrow.  A hold-buy will see PA move in the long direction.  Around bar 20 we saw another hold signal.  Again, price rose from the signal area, which, by the way, was also the SBBO5 level. PA consolidated within the ranges:  could not break long nor short until bar 33. At bar 37-38 we see more buying, when a new buy signal hits.  The difference? this buy signal was for short covering, and was reveled in the PA of the bars.  Price did not run but was contained in a narrow 3-bar range.  The selling continued for the 15/20 variety and more. Looking for key signs helps with market dynamics.  Using the BOT Ranges helps with order timing and hold patterns.  Add in buying/selling habit that signal  makes for a very nice package.